Department of Economic Development Thanks Companies Supplying Critical Items to Fight COVID-19
Tuesday, September 8th, 2020
The Georgia Department of Economic Development, alongside Governor Brian P. Kemp, again thanked the numerous companies across the state who have stepped up to provide personal protective equipment (PPE) and health care supplies to fight COVID-19. They also reminded businesses of the new measures Governor Kemp recently signed into law that encourage additional PPE production in the state and aid businesses who have created jobs in recent years, but whose job numbers have been harmed during the pandemic.
While the state has reported strong new job creation numbers from economic development projects in recent months, including roughly $574 million in new investments and 3,629 new jobs created in July, the immediate response to COVID-19 in March and April caused labor difficulties. On June 30, Governor Kemp signed legislation into law that offers economic relief to companies that have created new jobs while making PPE and other critical health care supplies. The new legislation has generated strong interest from industry.
“We are deeply grateful for the hardworking manufacturers and other businesses, which have worked with resilience to respond to this unanticipated crisis, and we want them to know that they have our support,” said Governor Kemp. “I also commend the General Assembly for supporting these measures to bolster our efforts to secure a safe, healthy, and prosperous future for Georgia.”
During COVID-19, Georgia businesses who manufacture critical health care supplies have stepped up to help, adjusting operations to meet record-high demand. Additionally, large and small businesses who did not historically manufacture these supplies have also found ways to pivot operations, retool machines and provide the most critical goods and services for fighting COVID-19. Some of these companies tapped assistance from state-led resources such as the Georgia Department of Economic Development’s (GDEcD) Centers of Innovation and Global Commerce divisions and their networks. The Atlanta Business Chronicle highlighted some of these efforts in a recent article, “Manufacturing companies create products to fight Covid-19” (https://www.bizjournals.com/
The Georgia legislature, with support from Governor Kemp, Lieutenant Governor Geoff Duncan, and House Speaker David Ralston, passed a tax credit to aid PPE manufacturers, including those existing Georgia manufacturers who did not traditionally manufacture PPE or hand sanitizer but began doing so in response to COVID-19. The new credit is also designed to incentivize more production of PPE and hand sanitizer in Georgia so the state will be better equipped to fight the COVID-19 pandemic and further enhance its position as a national leader in advanced manufacturing. The state’s strength across multiple manufacturing sectors resulted in a GDP of $64.7 billion in 2019, and the Georgia Department of Labor estimated that there were 387,400 manufacturing jobs in the state as of June 2020.
Additionally, changes have been made to existing job tax credit programs to give relief to existing Georgia companies whose recently created jobs have been impacted by the effects of the pandemic. Specifically, existingGeorgia companies that claimed Job Tax Credits or Quality Jobs Tax Credits in 2019 may now carry over their 2019 job creation numbers to 2020 and/or 2021. This change ensures that existing Georgia businesses impacted by COVID-19 have the flexibility to continue to receive tax credits at their 2019 levels as they work to return their employment numbers back to pre-COVID levels. The credit expires Jan. 1, 2025. The Georgia Department of Community Affairs’ Board of Directors has already taken action to update its policies to account for the new legislation.
Throughout Georgia’s response to COVID-19, GDEcD has led efforts to support businesses, identify companies that can restructure operations to produce PPE, and coordinate with those already doing so. The Georgia Suppliers Interactive Map and List (www.georgia.org/
“We appreciate Governor Kemp and our state legislature for incentivizing PPE production and safeguarding Georgia job creators and businesses who have taken a hit from the COVID-19 pandemic. These pro-business measures will help ensure that Georgia’s future is bright as we continue to create good jobs and keep the state prepared to face public health challenges,” said GDEcD Commissioner Pat Wilson. “Our strong relationships have proven vital in this fight. We thank all those in our business community who have gone above and beyond to protect Georgia’s families and frontline heroes and keep our workforce on a payroll.”
For additional information on H.B. 846, the PPE credit and carryover option legislation, click here(http://www.legis.ga.gov/
The Georgia Department of Economic Development also maintains a contact form for economic development-related inquiries, available here (https://www.