Taxes and Incentives

In a major timber-producing region, money does in fact grow on trees.  It’s also plentifully available to new and existing industry in Washington County thanks to our designation as a Georgia Tier One community.

Qualifying companies can reap Georgia’s top financial incentives, including the Tier One tax credit of as much as $4,000 in annual savings for up to five years, based on a minimum of two jobs. Tier One incentives are available to a wide range of sectors including:

• Manufacturing
• Distribution and warehousing
• Processing
• Tourism
• Research and Development
• Telecommunications.

A company creating 50 jobs, for example, would receive the full amount (50 x $4,000) equaling $200,000/ year for 5 years, for total amount of $1 million in tax credit.

This alternative to the jobs tax credit allows manufacturing or telecommunications companies operating in Georgia for at least three years to earn investment tax credits for upgrades or expansions, from to 1 percent to 8 percent of qualified capital investments of $50,000 or more. Rates vary according to type of equipment, and tax credits can be used to offset up to 50% of the company’s Georgia corporate income tax liability, with any unused credit carried forward for up to 10 years.

For companies that qualify for the jobs tax credit and that increase their port shipping by at least 10% over the previous or base year, the Port Tax Credit Bonus provides an additional $1,250 per job tax credit applied toward Georgia corporate tax liability, which may be used to offset up to 50% of the company’s corporate income tax liability, and may be carried forward for up to 10 years, providing the company’s port traffic remains above the qualifying threshold.

While Georgia’s renowned Quick Start helps businesses get up to speed fast, the Georgia Retraining Tax Credit insures that our industrial workforce stays ahead of the game. Manufacturing and telecommunications operations operating in Georgia for at least three years are eligible for tax credit of 50% of direct training expenses, with up to $500 credit per full-time employee per training program, with an annual maximum credit of $1,250 per employee. Instructor and teaching materials costs, employee wages during the retraining period and reasonable travel expenses are all applicable toward the credit.

Sales tax use and exemptions are available for a wide range of products and services, including purchase of manufacturing equipment, service to industrial equipment, primary material handling equipment, energy and water used in manufacturing, and more.

Level One  (100%) Freeport Exemption is also available on tangible personal property including goods in the process of being manufactured; finished goods held by the Georgia producer or manufacturer for a period of 12 months or less; finished goods stored in a warehouse, dock or wharf, destined to for shipment outside the state for a period of 12 months or less.

Other tax credits and incentives include:

• Quality Jobs Tax Credits for jobs created that pay 10% above the county average.
• Work Opportunity Tax Credits for jobs that employ workers who face barriers to hiring and employment.
• Research and Development Tax Credit for those companies that increase research spending.