On the final day of the legislative session last month, the Georgia House of Representatives approved the creation of a new financial technology committee. The study committee will examine possible incentives such as tax breaks for financial technology companies and payment processors in Georgia.
Lawmakers noted in the text of Senate Resolution 883 that over 70 percent of all financial transactions processed in the United States are actually processed by companies headquartered in Georgia. Georgia’s “Transaction Alley” is responsible for 40,000 jobs plus another 40,000 related support jobs. Sen. Brandon Beach (R-Alpharetta) and Elena Parent (D-Atlanta)—the senator for the district I live in—were among the cosponsors.
Study committees like this tend to schedule a few hearings where they talk to industry experts and a couple of state government officials. They come up with reports that often become the basis of legislation in the upcoming year. I would predict that this study committee may come up with some tax incentives for financial technology companies to locate or remain in Georgia. They could design these along the lines of Georgia’s successful film tax credit. The committee may also encourage venture capital investments into fintech startups.