Georgia Tax Credits, Exemptions and Incentives Available to Businesses - March 2012
Job Creation: Depending on the economic status of a particular county, businesses involved with manufacturing, warehousing and distributions, telecommunications or research & development are eligible for a tax credit of $750-$3,500 for each new job created. This credit is valid for a period of five years.
Joint Development Authorities: Counties belonging to joint development authorities offer an additional $500 value associated with each qualified job tax credit, valid for five years.
Georgia Ports: Those businesses which increase their use of Georgia ports over a 12-month period can qualify for an additional $1,250 for each job tax credit, valid for five years.
Investment (< $5 million): Companies involved in manufacturing, warehousing and distribution, telecommunications or Research & Development can receive a tax credit between 1% and 5% of the amount of industrial investments valued at $50,000 or more if the company has facilitated in Georgia for three years.
Investment (> $5 million): Companies involved in manufacturing, warehousing and distribution, telecommunications or Research & Development can receive a tax credit between 6% and 10%, if the company has facilitated in Georgia for three years and is planning investments of over $5 million.
Headquarters: Companies establishing or re-locating their headquarters to Georgia can receive $2,500 annually per job, or $5,000 if the average wage of jobs of the county where the headquarters is located has doubled, if the company has created 50 new jobs and invested $1 million in one year.
House Bill 386, March 2012: Tax exemptions will be added for energy used by manufacturers, airline fuel and farm machinery and supplies. The bill includes a four-year phase-in on energy used in manufacturing and mining, beginning January 1, 2013. Local governments may opt into the exemption for local sales tax on energy.
Manufacturers and agribusiness will be granted more than $200 million in tax breaks over the next three years.
Machinery and equipment used in manufacturing, pollution control and materials handling are exempt from sales tax. Also exempt are raw materials and real estate.
Property Tax: Three-fourths of Georgia counties exempt 20 to 100 percent of manufacturing inventory from local property tax.
Georgia’s nationally recognized Quick Start program is administered by the Georgia Department of Technical and Adult Education (GDTAE) and provides flexible, customized training through a network of technical colleges, multiple satellite campuses and four associated universities. Recognized by such publications as Expansion Management and Fortune, Quick Start has offered services ranging from company orientation to advanced manufacturing technology training to productivity enhancement. Since 1967, more than 3,700 companies and 390,000 Georgia workers have benefited from this no-cost program.
Details are available at this site. To ensure businesses are in compliance prior to claiming any incentives or deductions, they should consult with a tax professional before taking any action.