HB1371: HB1371 Georgia Secure Tomorrow Act of 2026; enact

Georgia currently has several job tax credit programs, but none specifically target defense, aerospace, drone, or disaster-response manufacturing. This bill adds a new section to Georgia's tax code (O.C.G.A. § 48-7-40.38) creating income tax credits for "business enterprises" engaged in what the bill calls Secure Tomorrow activities, a broad category covering defense contractors, satellite and space system makers, drone and counter-drone manufacturers, and companies supplying FEMA or the Georgia Emergency Management and Homeland Security Agency. To qualify, a company must invest at least $1.5 million (for an expansion) or $3 million (for a new facility) and create or retain at least 20 full-time jobs paying 135 percent of the county average wage. A new 15-member Secure Tomorrow Task Force would review applications and certify projects. Approved businesses could get base wage credits plus bonus credits for veterans, drone workers, and jobs near military bases or ports, subject to a $15 million per-project cap and a $75 million yearly statewide cap. The law would take effect January 1, 2027.

• Creates a new Georgia income tax credit for businesses engaged in defense, aerospace, drone, or emergency response manufacturing that meet minimum investment and job creation thresholds.
• Sets up the 15-member Secure Tomorrow Task Force, appointed by legislative leaders, the Governor, and state agencies, to review and certify qualifying projects within 30 days.
• Allows companies to stack a base wage credit (7 percent of employee pay) with add-on credits for hiring veterans, drone workers, space-sensor workers, or emergency-equipment workers.
• Adds an extra capital investment credit (10 to 14 percent) and a location bonus for projects near military bases, ports, the Atlanta airport, or engineering colleges.
• Requires companies to file reports every two years proving they kept jobs and wages, with forfeiture of credits and back taxes owed if they fail to comply or abandon the facility.
• Caps total credits at $15 million per project and $75 million statewide per year, and makes the program effective January 1, 2027.

Defense contractors, aerospace and satellite manufacturers, drone and counter-drone companies, and firms supplying FEMA or Georgia's emergency management agency could all apply for the credits. Veterans and engineering graduates near participating facilities may benefit from targeted wage bonuses. The Georgia Department of Revenue and the new task force would administer the program, and state and local officials would fill task force seats.

Companies that build or expand defense, aerospace, drone, or disaster-response facilities in Georgia could receive years of substantial tax credits, potentially lowering their tax bills to zero and getting refunds for unused credits. This could shape where such companies choose to locate and how many jobs they create, while adding a new tax expenditure the state must track and cap.

• Subsection (a) defines key terms including 'Secure Tomorrow activities,' which covers defense, national security space and air systems, disaster response, and related dual-use technologies.
• Subsection (b) requires businesses to apply to the commissioner, who refers applications to the Secure Tomorrow Task Force for certification within 30 days.
• Subsection (c) sets base credits of 7 percent of employee compensation, plus add-ons of 1.5 to 2 percent for veterans, drone workers, space-sensor workers, and emergency-equipment workers.
• Subsection (d) adds a capital investment credit of 10 percent, or 14 percent for investments over $25 million or more than 150 jobs.
• Subsection (e) adds location-based credits for projects near listed military bases, ports, the Atlanta airport, or engineering schools.
• Subsection (f) makes excess credits refundable to the business rather than just carried forward.
• Subsection (h) caps credits at $15 million per project and $75 million statewide annually.
• Subsections (j) through (m) require biennial compliance reports and impose recapture of credits, back taxes, and interest if job or wage requirements are not met or the facility is abandoned.

1. 2026-02-20House Second Readers (House)
2. 2026-02-19House First Readers (House)
3. 2026-02-18House Hopper (House)

• Jordan Ridley (R, HD-022)Primary sponsor
• Kasey Carpenter (R, HD-004)
• Mitchell Horner (R, HD-003)
• Trey Kelley (R, HD-016)
• Mitchell Scoggins (R, HD-014)

• tax credits
• defense industry
• aerospace jobs
• economic development
• drone manufacturing