Hinds County Economic Development Authority | P.O.Box 248 | Jackson, MS 39205 | Ph. (601) 353-6056
Cook County, GA Economic Development Commission

229.896.2575

Georgia Incentives

Georgia Incentives

 

Georgia has powered to the top of “Best for Business” lists by empowering business through high-performance assistance in financial incentives and tax credits.

 

TAX CREDITS

Job Tax Credit:  In Cook County, this credit provides for a statewide job tax credit of $4000 per job created for businesses with a minimum of 2 net new jobs created. Qualified companies that create new, full-time jobs can earn this credit each year, for 5 years, provided the new jobs are maintained. The total credit amount can be used to offset up to 100% of the taxpayer's state income tax and payroll liability for a taxable year. A credit claimed but not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which the qualified jobs were established. For more information refer to O.C.G.A 48-7-40 and 48-7-40.1

 

Quality Jobs Tax Credit:  Companies that create at least 50 jobs in a 12-month period - at wages that are at least 10 percent higher than the county average - qualify for a tax credit of $2,500 to $5,000 per job. A taxpayer may claim the credit in years one through five for new quality jobs created in year one, and may continue to claim newly created new quality jobs through year seven and claim the credit on each of those jobs for five years. The credit may be used to offset 100 percent of the taxpayer's Georgia income tax liability in the taxable year. Where the amount of such credit exceeds the taxpayer's tax liability in a taxable year, excess may be taken as a credit against taxpayer's quarterly or monthly withholding tax. For more information, refer to O.C.G.A. 48-7-40.17

 

Port Tax Credit Bonus:  Georgia companies that increase imports or exports through a Georgia port by at least 10 percent can qualify for a bonus tax credit.
Options offered are an additional job tax credit of $1250 per job; an investment tax credit of 5% and an optional investment tax credit of 10%. For more information, refer to O.C.G.A. 48-7-40.15.
 

Work Opportunity Tax Credit:  Georgia’s Department of Labor administers a federal tax credit to Georgia companies that hire individuals who have faced barriers to employment. The tax credit ranges from $1,200 to $9,000 per hire.
 

New Manufacturing Facilities Property Credit:  This is an incentive for a manufacturer who has operated a manufacturing facility in the state for at least 3 years and who spends $800 million on a new manufacturing facility in the state. The number of full-time employees must equal or exceed 1800. These do not have to be new jobs to Georgia. The benefit awarded to a manufacturer is a credit against taxes equal to 6 percent of the cost of all qualified investment property purchased or acquired. The total credit allowed is $50 million and the credit offsets income tax liability. Any excess may be used to offset withholding taxes. There is a 15-year carry forward of any unused tax credit. For more information, refer to O.C.G.A. 48-7-40.25.

 

Investment Tax Credit:  Companies in manufacturing or telecommunications support that have operated in Georgia for at least three years are eligible to earn investment tax credits for upgrades or expansions. Credit earned amounts to 1 percent to 8 percent of qualified capital investments of $50,000 or more. 
The credit is calculated using two factors: geographic location - companies in the state’s less prosperous counties receive larger credits and type of investment - companies that invest in recycling equipment, pollution control or in converting a defense plant manufacturing facility to a new product earn tax credits of 3 percent to 8 percent of their capital outlay. Investment in general equipment for manufacturing or telecommunications services earns tax credits of 1 percent to 5 percent. Investment tax credits can be used to offset up to 50 percent of a company’s Georgia corporate income tax liability. If the earned credit exceeds that limit, then the unused credit can be carried forward for up to 10 years and applied to future years’ tax liability. Companies should compare the benefits of the investment tax credit with those of the job tax credit, as taxpayers are allowed to claim one or the other, but not both. For more information, refer to O.C.G.A. 48-7-40.2, 40.3 and 40.4.

 

Optional Investment Tax Credit:  Optional investment tax credits reward growing companies for making major investments in Georgia. Taxpayers qualifying for the investment tax credit may choose an optional investment tax credit. In Cook County the minimum investment is $5 million and the tax credit is 10%. The credit may be claimed for 10 years, provided the qualifying property remains in service throughout that period. For more information refer to O.C.F.A. 48-7-40.7, 40.8 and 40.9.

 

Research and Development Tax Credit:  A tax credit is allowed for research expenses for research conducted within Georgia for any business or headquarters engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, broadcasting or research and development industries. The R&D tax credit is equal to a portion of the spending increase. For more information, refer to O.C.G.A. 48-7-40.12.
 

Employer's Credit for Basic Skills Education:  Businesses which provide or sponsor basic skills education that enhances reading, writing, or mathematical skills up to and including the 12th grade, or classes to receive a GED certificate, may receive a tax credit. The program is administered by the Department of Technical and Adult Education. For more information, refer to O.C.G.A. 48-7-41.

 

Angel Investor Tax Credit:  Georgia offers an income tax credit for qualified investors who invest in certain qualified businesses in Georgia.

 

Film, Television and Digital Entertainment Tax Credit:  Film and television companies may receive a tax credit of up to 30 percent of money spent on production and post-production in Georgia, either in a single production or on multiple projects. Minimum spending amount is $500,000. The credit may be claimed against 100 percent of the production company's income tax liability, while any excess may be used to offset the production company's withholding taxes. A credit claimed but not used in any taxable year may be carried forward for 5 years from the close of the taxable year in which the investment occurred. The production company also has the option of selling the tax credit to a Georgia taxpayer. For more information refer to O.C.G.A. 48-7-40.25

 

Employer's Credit for Purchasing Child Care Property:  Employers who purchase or build qualified child care facilities are eligible to receive Georgia income tax credits equal to 100% of the cost of such property. The credit is claimed at the rate of 10% a year for 10 years. Any unused credit may be carried forward for three years and the credit is limited to 50% of the employer's Georgia income tax liability for the tax year. The child care facility must be licensed by the state. For more information, refer to O.C. G. A. 48-7-40.6.

 

Employer's Credit for Providing or Sponsoring Child Care for Employees:  Employers who provide or sponsor child care for employees are eligible for a tax credit of up to 75% of the employers' direct costs. The credit may not exceed 50% of the taxpayer's total state income tax liability for the taxable year. Any credit claimed but not used in any taxable year may be carried forward for five years from the close of the taxable year. For more information, refer to O.C.G.A. 48-7-40.6

 

Qualified Transportation Credit:  A credit of $25 per employee for any "qualified transportation fringe benefit" provided by an employer to an employee. For more information, refer to O.C.G.A. 48-7-29.3

 

Retraining Tax Credit:  A company's direct investment in training can be claimed as a tax credit. The credit is available to all Georgia businesses that file a Georgia income tax return. Fifty percent of the employer's direct cost, up to $500 per full-time employee, per approved training program, may be claimed as a credit. The total amount of credit cannot exceed $1,250 per employee per year. Training programs must be approved by the Technical College System of Georgia. The retraining program must be for quality and productivity enhancements and certain software technologies. This tax credit can be used to offset up to 50 percent of a company's state corporate income tax liability and unused credits can be carried forward for 10 years. These credits can be combined with other tax credits.  For more information, refer to O.C.G.A. 48-7-40.5.

 

TAX EXEMPTIONS

Sales and Use Tax Exemption:  Qualified equipment purchases or leases are exempt from sales tax when the equipment purchased is used in the manufacturing process.  Under certain conditions, primary material handling equipment (in warehouses and distribution centers); computer equipment and Class 100 (or less) clean room machinery, equipment and materials can also be exempted.

 

Inventory Tax Exemption/Freeport Tax Exemption:  Business inventory is exempt from state property taxes (0.25 mills). Through Freeport Tax Exemption in Cook County, 100% of qualified raw materials, work-in-process and finished goods inventory are exempt. Distribution center and warehouse inventories are also exempt if the inventory is destined to be shipped out of state.

 

Manufacturing Machinery and Equipment:  Manufacturing machinery and equipment that is integral to the manufacturing process and used in a manufacturing facility located in Georgia is exempt from sales tax. Qualifying machinery or equipment must be purchased for a new manufacturing facility, as replacement machinery in an existing manufacturing facility, or for the upgrade or expansion of an existing manufacturing facility.

 

Repair to Industrial Machinery:  The sale or use of repair or replacement parts, clothing machinery, molds, dyes, waxes or tooling for machinery that is integral to the manufacture of tangible personal property in an existing manufacturing plant is exempt from taxation.

 

Raw Materials and Packaging:  The following may be purchased tax-free:  materials used for further processing, manufacture, or conversion into components of a finished product; materials coated upon or impregnated into a product being manufactured for sale; and non-reusable materials used to package products for sale or shipment.

 

Energy Used in Manufacturing:  The sale, use, storage, or consumption of energy that is necessary to the manufacture of tangible personal property at a manufacturing plant in Georgia is exempt from all sales and use taxation except for the sales and use tax for education purposes. This includes energy used directly or indirectly in a manufacturing facility. The exemption will be implemented over four years with 25 percent phased in each year beginning on January 1, 2013, and reaching 100 percent on January 1, 2016.

 

Primary Material Handling Equipment:  Machinery and equipment used to handle, move, or store tangible personal property in a new or expanded distribution or warehouse facility where the total purchase or expansion is valued at $5 million or more is exempt. The distribution or warehouse facility may not have retail sales equal to or greater than 15 percent of the facility's total revenues.

 

Pollution Control Equipment:  Machinery and equipment used for the primary purpose of reducing or eliminating air and water pollution is exempt.

 

Computer Hardware and Software for High Technology Companies:  The sale of certain computer equipment is exempt when the total qualifying purchases by a high technology company in a calendar year exceed $15 million. A high technology company must be classified under certain relevant North American Industry Classification system codes.

 

Clean Room Equipment:  Machinery, equipment and materials used in the construction or operation of a clean room of Class 100 or less is exempt when the clean room is used directly in the manufacture of tangible personal property.

 

Water Costs:  The sale of water delivered through mains, lines, or pipes is specifically exempt.

 

Telecommunications Services:  In-state calls are taxed and interstate calls are exempt.

 

To find out more about how to qualify, and how our incentives and advantages can work for you, contact our team today.

 

 

 


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