House Bill 125 is assumed to be taken to the election floor next week.
The bill, which has been created to even out the arena with Florida in catching the attention of mega yacht overhaul work to Georgia, has stayed stagnant in the Senate for quite some time.
The deciding factor on whether to pass the bill or not depends on the repair sales tax. It will also decide whether Savannah will turn into a key East Coast center for yacht fixing. This industry has a yearly profit of about $144 million in Chatham County by itself.
The CEO and president of the Colonial Group Inc. Rob Demere said that Georgia is set to become a valuable icon in the yacht refit industry. This is despite the fact that Florida currently dominates the said yacht center industry.
Even if House Bill 125 is not put into passage, Demere perceives that the advantages of Florida are too immense to overpower.
The bill stipulates that a yacht owner would receive an annual profit tax break on engines, parts, and other equipment for his yacht overhaul. This would be possible only after the first half-million dollar is spent.
House Bill 125 is in the same level as the one which was passed in 2015 in Florida. New York also passed a decree that same year, capping profit taxes on mega yacht overhaul in an attempt to contend against Florida.
An economic influence research finished by Michael Toma, an economist from Armstrong State University, discovered that the Savannah Yacht Center will be able to yearly sustain just about 800 direct, and even indirect jobs. It will also be able to distribute wages amounting to $50 million, a tax profit of $5.5 million, and $171 million in economic endeavors. This is possible once the center will be fully ready.