The governor vetoed a bill that would have suspended tax breaks for data centers for two years, saying it would hurt the business community.
of invoice It was proposed as a moratorium to allow the state to assess the impact these large energy consumers would have on the power grid. Georgia Power, the state's largest electric utility, relies on fossil fuel resources to make up for energy shortages Partly because of these data centers.
The measure will apply to new applications for state sales tax exemption starting July 1, and the future of the benefit will be in the hands of a new task force on data center energy planning.
The proposal narrowly passed both houses of Congress in 2024, drawing bipartisan opposition from Democrats who responded to concerns from lawmakers and labor unions with domestic data centers.
Gov. Brian Kemp argued in a statement that the state Legislature just two years ago extended the sales tax exemption for an additional three years.
“The language of this bill would prevent the issuance of exemption certificates after the sudden July 1, 2024 deadline for many customers of projects already in development, and would prevent high-tech data center operators, customers and others from “The recent extensions are hampering critical infrastructure and job development, undermining the investments that stakeholders have made in reliance on data centers,” Kemp said in a statement.
Environmental groups were disappointed by the veto.
“The surge in demand for electricity from data centers is propping up old coal-fired power plants and sparking a rush to build new gas infrastructure,” said G. Weber, director of the Sierra Club's Georgia chapter. “The result will be more air and water pollution in Georgia’s communities, hampering our fight to limit the worst effects of climate change.
“Mr. Kemp is burying his head and refusing to address issues that already have a significant impact on our country,” Weber added.
A group of environmental organizations sent a letter to the governor pressuring him to sign the bill. letter The group argued last month that the move was a reasonable step to prepare for the impact of these data centers.
“Giving tax breaks to data centers without studying the impact on the environment and ratepayers is short-sighted,” said Jennette Geier, executive director of Environment Georgia. “I hope we can revisit this issue in the next Congress.”
The bill is one of ten people It was struck down by Kemp on Tuesday, the final day for the governor to sign the bill.
A clerical error?
The governor also exercised his veto power. invoice That would have increased the homestead exemption amount, and there appears to have been a last-minute legislative error.
The version passed by the House would increase the statewide homestead tax exemption from $2,000 to $4,000. However, state senators increased the amount to $10,000 in committee, but returned it to the original amount on the floor.
problem? The change would require voter approval, but the language on the ballot still included the Senate's high price.
“Voters would therefore approve another exemption that Congress did not pass, but the statutory language would not receive the necessary voter approval to go into effect,” Kemp said in a statement vetoing the statement. mentioned in.
This would have been the first adjustment to the homestead exemption since the late 1970s. The proposal was part of a series of tax-cut bills supported by the House speaker.
HOPE for graduate students
Kemp said lawmakers didn't consider the cost to the state, creating a conflict between three bills aimed at cutting college education costs.
Atlanta Democrat Scott Holcomb's expansion of the HOPE scholarship will allow some recipients with extra time after graduation to use the cost of their credit hours toward a professional or graduate degree. .
House Bill 1231 It passed the Senate unanimously and passed the House on the final day of Congress by a vote of 166-1, with Dallas Republican Rep. Martin Momtahan the only non-voter.
But Kemp said students left about 108,000 HOPE credit hours on the table, which could cost the state more than $25 million if everyone took advantage of those courses. Stated.
“I was proud to fully restore the promise we made to Georgia students so long ago.
We will fund the HOPE Scholarship in 2023,” he wrote. “In order to keep that promise, and financially,
Given the support it has, we only need to consider full expansion.
You need to understand the impact it has on your available funds. ”
Tuition subsidies for nurses
For the 2023-2024 school year, eligible private school students will receive $500 per semester, or quarterly, to help pay for tuition, thanks to the state's tuition equalization grant. You will receive an additional $333.
House Bill 228, sponsored by Rome Republican Rep. Katie Dempsey, aimed to expand it. Dempsey said her goal is to increase nursing capacity in the state by making students in private nursing programs who meet licensure exam pass rates and other criteria eligible for grants.
The Senate amended the bill to further extend benefits to other private college students, but Kemp said lawmakers have not provided funding for the plan or provided a cost estimate.
“Despite the finite resources of each of these programs, the General Assembly has decided to provide funding for expanding the agency's eligibility without additional funding or a fiscal analysis that addresses the impact of the expansion on current appropriations.'' “We have proposed many ad hoc bills,” he wrote. “While we recognize the usefulness of tuition equalization grants for specific educational needs, the diversion of taxpayer funds to private institutions should only be pursued on a prudent and consistent basis. is.”
military truck
History repeated itself Tuesday when Kemp defeated a bill aimed at putting veterans in the cabs of trucks.
Dallas Republican Sen. Jason Anavitarte Senate Bill 203 The purpose is to help veterans find jobs after leaving the military by making the Georgia Technical College System's commercial driver's license training free to veterans.
When the measure was included as part of House Bill 249 last year, lawmakers in both chambers overwhelmingly approved it, but Kemp vetoed it because the budget did not include funding for the program.
In his veto statement, Kemp said he would not fund free lessons again this year.
“This proposal was previously included in House Bill 249, which I vetoed because the General Assembly failed to fund this initiative. “We were also unable to provide the same,” Kemp wrote.
Kemp supports veterans and encourages those interested in obtaining a CDL to consider “resources currently available to cover tuition costs, such as the Hope Career Grant.” added.