Haralson Tax Advantage
Corporate Tax Credits:
Georgia offers a range of corporate tax credits that enable companies to minimize or completely eliminate state corporate income taxes which, at six percent, are already among the lowest in the nation.
Job Tax Credit
Haralson County is a Tier 2 County. Companies creating 10 or more jobs in a Tier 2 County may receive a $2,500 tax credit. An additional $500 credit is offered because Haralson is in a joint development authority so the total job tax credit increases to $3,000 per new job.
Credits may be taken against 100 percent of state corporate income tax liability in Haralson County because of our Tier 2 status. Credits that are claimed but not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which qualified jobs were established.
Port Tax Credit Bonus
The Port Tax Credit Bonus is available to taxpayers who increase imports or exports through a Georgia port by 10 percent over the previous or base year. Base year port traffic must be at least 75 net tons, five containers, or 10 TEUs (twenty-foot equivalent units); if not, the percentage increase in port traffic will be calculated using 75 net tons, five containers, or 10 TEUs as the base. The port tax credit bonus can be used with either the Job or Investment Tax credit program, provided that the company meets the requirements for one of those programs. Port Tax Credits may be used to offset up to 50 percent of the company's corporate income tax liability. Unused credits may be carried for 10 years, provided that the increase in port traffic remains above the minimum level and that the company continues to meet the job or investment tax credit requirements. Note that the Port Tax Credit Bonus cannot be utilized with the Quality Jobs Tax Credit and can only be used in Opportunity Zones, Military Zones, and Less Developed Census Tracts in limited cases by existing large distribution centers.
Port Tax Credit Bonus for JOB Tax Credits- This "port bonus" is an additional $1,250 per job credit for taxpayers with qualified increases in shipments through a Georgia port. The $1,250 is added to the Job Tax Credit.
Port Tax Credit Bonus for INVESTMENT Tax Credit- This "port bonus" increases the Investment Tax Credit to the equivalent of a Tier 1 location regardless of the tier level. The port bonus would therefore be equal to five percent of the qualified investment in expenses directly related to manufacturing or providing telecommunication services with the credit increasing to eight percent for recycling, pollution control, and defense conversion.
Quality Jobs Tax Credit
Companies that create at least 50 jobs in a 12-month period where each job pays wages at least 110 percent of the county average are eligible to receive a tax credit of $2,500-$5,000 per job, per year, for up to five years, based on the scaled system below. New quality jobs created within seven years can qualify for the credit. Credits may be used to offset the company's payroll withholding once all other tax liability has been exhausted, and may be carried forward for 10 years. New jobs that do not meet the eligibility requirements for that program separately. For Current Average County Wages, visit http://explorer.dol.state.ga.us/mis/Current/ewcurrent.pdf.
Average Wage Requirement
(% of county average) New
Credit Value Per Quality Job
>110% and <120% $2,500
>120% and <150% $3,000
>150% and <175% $4,000
>175% and <200% $4,500
200% or greater $5,000
Research & Development
Georgia offers an incentive to new and existing business entities performing qualified research and development in Georgia. Companies may claim a 10 percent tax credit of increased R&D expenses subject to a base amount calculation.
The base amount = Current Year Georgia Gross Receipts x (average of the ratios of the company's qualified Georgia research expenses to Georgia gross receipts for the preceding three taxable years) OR 0.300, whichever is less. For new Georgia companies or for companies with no prior R&D expenditures in Georgia, the base amount is 30 percent of the current year's Georgia gross receipts.
The credit is determined by taking the current year's qualified R&D expenses, subtracting the base amount, and multiplying by 10 percent. The R&D credit is applied to 50 percent of the company's net Georgia income tax liability after all other credits have been applied. In the first five years of a newly formed business entity in Georgia, any excess R&D credit can then be applied to the company's state payroll withholding. Any unused credits can be carried forward for up to 10 years from the close of the taxable year in which the qualified research expenses were made.
Mega Project Tax Credit
Companies that employ at least 1,800 net new employees, and either invest a minimum of $450 million or have minimum annual payroll of $150 million may claim a $5,250 per job, per year tax credit for the first five years of each net new job position. Credits are first applied to state corporate income tax, with excess credits eligible for use against payroll withholding. Credits may be carried forward for 10 years.
Child Care Tax Credits
Employers who purchase or build qualified child care facilities are eligible to receive Georgia income tax credits equal to 100 percent of the cost of construction. The credit for the cost of construction is spread over 10 years (10% each year). Unused child credits from the purchased or construction of a child care facility can be carried forward three years. The child care facility must be licensed by the state.
Employers who provide or sponsor child care employees are eligible for a credit against Georgia income tax equal to 75 percent of the employer's direct costs. Credits that are related to the operating cost of the facility may be carried forward five years. All child care credits can be used against 50 percent of the taxpayer's income tax liability in a given year.
Sales and Use Tax Exemption
Qualified equipment purchases or leases are exempt from sales tax when the equipment pruchased is used in the manufacturing process. Under certain conidtions, primary material handling equipment (in wharehouse and distribution centers), computer equipment and Class 100 (or less) clean room machinery, equipment and materials can also be exempted.
Inventory Tax Exemption
Business inventory is exempt from property for 100 percent of qualified raw material, work-in-process and finished goods inventory under Georgia's local-option "Freeport" law. Haralson County offers 100% freeport.
Hiring & Training:
Georgia's Department of Labor (GDOL) assists companies in recruitment by posting job notices, collecting and screening applications and/or resumes, providing interview space, scheduling interviews and hosting job fairs. GDOL will work with private employment agencies that list jobs with the state.
Quick Start Employee Training
Georgia's nationally-ranked employee training program, Quick Start, provides customized training for new employees in skill-based jobs at no cost to qualifying companies. The training program is given to the company for its future use. Quick Start provides training space, instructors, and all needed materials related to the program, potentially saving companies millions of dollars in training costs.
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. 50 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. Unused credits can be carried forward for 10 years. These credits can be combined with other tax credits.
HOPE Scholarship & Grant
The HOPE Scholarship provides tuition assistance at one of the Georgia's 35 public colleges or universities for graduating Georgia high school seniors with a B or better average. The HOPE Grant provides an opportunity for all Georgians to receive degree or certificate programs at a low cost through Georgia's technical colleges and schools. These programs can be advantageous to relocating families with children, and for a company training employees, through local technical colleges.
Georgia's Intellectual Capital Partnership Program
ICAPP is the University System of Georgia's economic development program. It was created by the Board of Regents of the University System of Georgia in 1995. ICAPP connects the intellectual resources of Georgia's 25 public college and universities to the state's business community in innovative ways. ICAPP staff and a team of economic development leaders from each campus help Georgia business tap into the University System of Georgia for college-educated employees, access to the latest research, and business operations advice. For more information, visit www.icapp.org.
Small Business & Entrepreneurs:
Small businesses can qualify for many of the programs outlined in this brochure. In addition, Georgia offers several programs specifically designed to meet the needs of small businesses and entrepreneurs.
Angel Investor Tax Credit
Georgia now offers an income tax credit for qualified investors who invest in certain qualified businesses in Georgia in calendar years 2011, 2012, and 2013. The credit is claimed two years later, in 2013, 2014, and 2015, respectively. The credit is 35 percent of the investment with an individual investor cap of $50,000 per year. the aggregate annual cap for this program is $10 million. The qualified investor must get approval from the Georgia Department of Revenue before claiming the credit.
Small Business Tax Relief
Georgia now allows small businesses making capital investments of less than $410,000 to write off up to $102,000 of those expenses. For capital investments greater than $410,000, the tax write-off is reduced dollar for dollar.
Entrepreneur and Small Business Loan (ESB) Guarantee Program
In partnership with the OneGeorgia Authority, the state can provide loan guarantees to spur entrepreneurial growth in specified rural communities throughout Georgia. The guarantee amounts can range between $35,000 and $250,000, can be used for hard assets or for start-up and working capital, and require a 10 percent cash equity injection by the borrower. For more information, visit
Investment Tax Credit
Existing Georgia companies that have operated a manufacturing or telecommunications support facility in Georgia for at least three years, and that make a minimum $50,000 additional qualified capital investment, may claim from three to eight percent of the new investment directly related to manufacturing or providing telecommunications services as a tax credit. Higher credits are available for investments in recycling or pollution control equipment and for defense plant manufacturing conversion to a new product. Taxpayers must choose either the investment tax credit or the job tax credit. This credit may be applied against 50 percent of state corporate income tax liability and carried forward for 10 years.
Optional Investment Tax Credits
The optional investment tax credit can be taken in lieu of the investment tax credit. The credits range from six to 10 percent of qualified capital investment, with the minimum investment ranging from $5 million to $20 million. A taxpayer can use the tax credits up to the calculated amount for a given year. The credit may be claimed up to 10 years after the year the property was first placed in service, provided the property remains in service. The optional investment tax credit is a calculated risk. Without large increases each year in income tax liability, the useable tax credit could be very small and possibly zero.
Georgia Film Tax Credit
The Georgia Entertainment Industry Investment Act offers across-the-board flat tax credit of 20 percent based on a minimum investment of $500,000 on qualified productions in Georgia. An additional 10 percent uplift can be earned by including an embedded animated Georgia logo on approved projects. Qualified expenditures include materials, services, and labor.
Eligible productions include feature films: television movies, pilots, or series: commericals; music videos; and certain interactive projects including types of animation, special effects, and video game development.
The $500,000 minimum expenditure threshold can be met with one or the total of multiple project aggregated. The income tax credit may be used against Georgia income tax liability or the company's Georgia withholding. If the production company chooses, they may make a one-time sale or transfer of the tax credit to one or more Georgia taxpayers.
Haralson County has 100% Freeport on all of the following inventory classes:
1. Raw materials and goods in process
2. Finished goods produced in Georgia during the last 12 months
3. Finished goods stored in Georgia within the last 12 months and destined for shipment out-of-state
Industrial Revenue Bond Financing
Tax exempt Industrial Revenue Bond Financing is available to qualified manufacturing companies with projects of less than 10 million dollars. Taxable bond financing may be available if the captial expenditures are too large for tax exempt IRB's. IRB's issued through the Development Authority create a financing mechanism that lowers total project costs.
Tax incentives are considered on a case-by-case basis. These incentives are based upon the economic impact on the community, including capital investment and jobs created.