Gov. Kemp Urges Federal Delegation to Support Georgia Jobs and Oppose Budget Reconciliation Provision

Atlanta, GA – Governor Brian P. Kemp today issued a letter to all members of Georgia's congressional delegation, urging them to support Georgia jobs and protect job creators from a disastrous provision in the federal Budget Reconciliation bill that would negatively impact Georgia's thriving automotive industry.

"As governor, I have worked alongside the General Assembly to maintain a stable and fair business environment that protects the jobs of hardworking Georgians and supports our job creators," said Governor Kemp. "There is currently a tax credit provision in the massive reconciliation package that would significantly damage the automotive manufacturing industry in our state and endanger 55,000 Georgia jobs. I am asking members in both the U.S. House and Senate to quickly work to remove this provision from consideration or oppose the overall bill when it comes up for a final vote."

As currently drafted, Section 136401 – Refundable New Qualified Plug-In Electric Drive Motor Vehicle Credit for Individuals – creates a discriminatory $4,500 supplemental tax credit only for buyers of electric vehicles (EVs) assembled by organized labor. Georgia is a state where our quality workforce combined with below-national average unionization rates are key reasons why companies in the automotive industry choose to locate and expand here. Our state employs over 55,000 auto workers, and the Georgia Department of Economic Development (GDEcD) reported an increase of 43 percent in automotive job creation from fiscal year 2021. Limiting the tax credit to union-built, U.S.-assembled vehicles and applying these proposed limitations to the current EV market, puts Georgia job creators and workers in the automotive industry at a severe disadvantage.

Over the last five years alone, the state has seen more than 78 new automotive locations or expansions, representing thousands of jobs. With the transition to electrification, that number will continue to rise – unless Congress unwisely creates a barrier to job growth in our state.