Incentives/Taxes

Business Taxes & Incentives | Georgia's Corporate Income Tax | Incentives for Jobs

Inventory Tax Exemption | Tax Exempt Financing | Sales and Use Tax & Exemptions

BUSINESS TAXES AND INCENTIVES
Hart County’s pro-business leadership understands the importance of maintaining low taxpayer burden and have a proven track record of systemically lowering taxes whenever possible.  As a result, Hart County maintains one of the lowest unincorporated ad valorem tax rates in Georgia. Incentives to new and existing and expanding businesses are offered to encourage investment and job creation. Additional assistance is available for qualified businesses. For more information contact Terri Partain at (706)856-2452 or Email IBA@HARTCOM.NET

GEORGIA'S CORPORATE INCOME TAX
Georgia’s Single Factor Gross apportionment formula provides for significant reduction of Georgia income taxes for companies that produce goods or services within the state of Georgia and sell those products or services to customers in other states or countries. This change was designed to encourage companies to invest or expand in Georgia. > Georgia HR191.pdf.

INCENTIVES FOR JOB CREATION & INVESTMENT

Job Tax Credits
Hart County, Georgia's Business Expansion Support, in combination with active participation in a Joint Development Authority, provides qualified businesses in Hart County job tax credits of $1,750 each year for five years for each new full time job created. Companies can qualify for this credit if they create 15 new jobs in a year and are engaged in manufacturing, processing, distribution or headquarters activities.

   Example: $1,750 x 15 new jobs x 5 years=$131,250 in tax credits

Port Job Tax Credit Program
Georgia's Port Job Tax Credit Bonus is a $1,250 per job bonus for businesses that already qualify for the regular job tax credit and have an increase in shipments into or out of a Georgia Port.
   Example: $1,250 x 15 new jobs x 5 years = $93,750 in tax credits
Job Tax Credits and the Port Job Tax Bonus Credits earned in Hart County may be used to offset up to 50% of a company's Georgia corporate income tax liability in any taxable year following the year in which the credits are earned. Credits not used may be carried forward and applied for up to 10 years.

Investment Tax Credit
Investment tax credits help Georgia businesses grow by making it more affordable to expand and improve facilities.  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.
• 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.

Inventory Tax Exemption (Freeport)
Hart County allows a 100% Freeport tax exemption (ad valorem) for the following classes of inventory:
• Raw materials and goods in process of manufacture
• Finished goods produced in Georgia
• Finished goods destined for shipment out-of-state.

Taxable  & Tax  Exempt Financing - Industrial Revenue Bond (IRB)
Tax exempt bond financing may be available for companies seeking to finance the purchase of land, buildings and equipment for eligible manufacturing projects. Rates for tax-exempt bonds are market-based and established on the credit and strength of the individual company and projects. Tax-exempt IRB financing up to $10MM on a project, subject to certain federal tax law limitations

SALES AND USE TAX AND EXEMPTIONS
Hart County and State of Georgia Sales Tax totals 7%. Georgia Law provides a 100% sales and use tax exemption for qualified purchases including: • raw materials • goods intended for resale • qualified machinery used directly in the manufacture of tangible personal property • material handling equipment used in qualified distribution businesses.

For Economic Development information: Terri Partain at (706)856-2452 or Email IBA@HARTCOM.NET