Georgia's Incentives

Businesses in Tier 2 counties which create 15 or more jobs receive a $1,500 per job tax credit.
In Tier 3 counties, firms creating 25 or more jobs receive a $500 credit for each.
Credits apply for five years after jobs are created and are limited to 50% of corporate tax liability. Unused credits may be carried forward 10 years.

Job Creation in Joint Development Authorities
An additional $500 per job credit applies to companies locating in multicounty jurisdictions, making possible tax credits up to $3,000 per job.

Additional Credit in Less Developed Areas
A $2,500 job tax credit is available when 10 or more jobs are created in specially designated census tracts and at least 30% are for local residents.

Corporate Income Tax Reductions
Georgia believes that business should pay its fair share of taxes. But only its fair share. The reasonable corporate tax rate of 6% has not changed since 1969. And it applies only to the income apportioned to a company's Georgia operations.

Capital Investment
Manufacturers which have had plants or support facilities in operation at least three years may receive tax credits for plant expansions or facilities construction totaling $50,000 or more, based on the same tier structure as for job tax credits:
Companies in Tier 1 counties receive a 5% credit (or 8% for recycling, pollution control, and defense conversion activities).
In Tier 2 counties, businesses receive 3% or 5% credits. Firms in Tier 3 counties receive 1% or 3% credits.
These credits cannot exceed 50% of state income tax liability, but unused credits may be carried forward five years.
Larger credits can, depending on location, offset up to 90% of a manufacturer's increased income tax liability following a major expansion:

Job Creation
Georgia offers job creation tax credits for manufacturing, warehousing, distribution, processing, tourism, and research and development firms.
The state's counties are grouped by economic factors into three tiers:
In Tier 1 counties, companies creating 5 or more jobs receive a $2,500 tax credit for each new job.

These larger investment tax credits can be carried forward for 10 years but may not be taken in conjunction with job tax credits.
Retraining
Firms providing retraining for employees may receive a tax credit of 50% of their costs, up to $500 per participant, to a maximum of 50% of state income tax liability.

for New or Expanding Businesses

Basic Skills Education
Companies are eligible for a $150 credit for each employee who successfully completes an approved employer-provided basic skills education program.
Child Care
Firms providing or sponsoring child care for employees are eligible for a tax credit of 50% of their costs, up to 50% of state income tax liability.
Sales Tax Exemptions
Manufacturing Operations
Sales and use tax exemptions apply to: Raw materials Purchases for resale Machinery purchased new and used directly in the manufacturing process. Pollution control equipment. Machinery used directly in the remanufacturing of aircraft engines, parts, and components.
Material Handling Equipment
Material handling equipment, purchased by warehouses and distribution centers and costing more than $10 million ($5 million, effective January 1, 1997), is exempt from sales tax.
Pollution Control
Machinery and equipment used for pollution control is exempt from sales tax.
Electricity
Electricity used directly in manufacturing a product is exempt from sales taxation if it totals at least 50% of materials costs. This exemption is being phased in over five years.
Government Contracts
Goods used in performance of a U.S. Government contract by a contractor employing 500 or more workers are exempt from sales and use taxation. This exemption will be phased in at 25% increments from January 1, 1997 to January 1, 2000.

Property Tax Exemptions
Freeport
Three-fourths of Georgia's counties provide inventory tax exemptions ("Freeport") ranging from 20% to 100% for raw materials and goods in process, finished goods held by manufacturers, and finished goods held for out-of-state shipment.
Software
Computer software is taxable on the value of its storage medium, effectively exempting it from property taxation.
Local Incentives
In addition to the statewide and county inventory tax exemptions described above, many Georgia cities and counties offer a variety of incentives and tax reduction programs for business
Employee Training
Quick Start, Georgia's no cost employee training program, is delivered statewide through 32 area technical institutes. Quick Start and the Georgia Department of Labor cooperate to plan and implement a seamless screening, hiring, and training program, customized to each new or expanding company's specific needs, and emphasizing entry-level job skills. Quick Start also offers a series of specialized workshops for productivity enhancement. Since its inception in 1967, Quick Start has trained more than 150,000 employees for over 2,000 businesses and has been repeatedly cited as a national model for effective and comprehensive training.

One-Stop Environmental Permitting
Georgia offers efficient, one-stop environmental permitting through its Environmental Protection Division which is also approved by the U.S. Environmental Protection Agency to issue federally required permits. In contrast to the myriad of departments; commissions, and bureaus in other states, Georgia vests permitting authority in a single agency, saving months of time for many industries. Costly and time-consuming environmental impact statements are not required.
Energy and Communication
Supplier Choice
Georgia industries with electricity demands of 900 kw or higher may often choose among competing suppliers, taking advantage of a competitive market.

Facility Planning
The Georgia Tech Economic Development Institute provides planning services to companies locating or expanding facilities in Georgia. Examples include:
facility size and equipment layout material handling and work flow utility conservation safety and hazardous waste process technology competitiveness These services are particularly useful to companies without engineering staff or staff experienced in facility planning, and to companies seeking an objective, outside perspective.
International Trade Incentives
Foreign Trade Zones
Foreign Trade Zones at Atlanta, Brunswick, and Savannah allow users to legally delay, reduce, and sometimes eliminate import duties on goods which are held, packaged, processed, or manufactured in the zone.

Discounted Rates
Georgia's power suppliers and telecommunications companies offer grants to communities and discounted rates to commercial and industrial customers who create jobs when locating or expanding their operations. These vary by project parameters, supplier, and location.
Technology Support
The Advanced Technology Dev-elopment Center at Georgia Tech makes available a variety of support services, including incubator space, for emerging as well as established high technology firms. Through its corporate research and development support program, ATDC assists corporate R&D teams with access to the faculty, researchers, laboratories, library, and other amenities at Georgia Tech. The center also provides modern office and laboratory facilities and a central support staff. Headquartered in Atlanta, ATDC has branches in Augusta and Warner Robins.

Trade Lead Referrals
The Georgia Department of Industry, Trade & Tourism uses state-of-theart computer technology to match worldwide requests for products and services with the Georgia companies producing them.
Federally Funded Financing Programs
Through the Department of Community Affairs, Regional Development Centers, and local Certified Development Corporations, Georgia offers numerous financing options to new and expanding businesses. Packaged in a variety of programs, they can provide access to funding from the U.S. Small Business Administration, Department of Housing and Urban Development, Economic Development Administration, and Farmers Home Administration. In addition, enhancement programs are available from several sources to assist local communities with workforce training or infrastructure such as wastewater treatment facilities, underground utilities, street lighting, etc.
Industrial Revenue Bonds
Both taxable and tax exempt industrial revenue bond financing is available through the state or local development authorities at competitive, belowprime rates.

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