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Georgia Incentives
Georgia Tax Incentives Introduction: Georgia Tax Credits & Exemptions
The state of Georgia offers prospective companies a variety of tax credit and tax exemption opportunities. These incentives are designed to help companies locate, grow, and prosper while maintaining a healthy business environment for existing corporations. In Georgia, the private sector is appreciated and acknowledged for its support of the public sector.
Several of Georgia's tax credits are based on a Tier system that is updated annually by the Georgia Department of Community Affairs. The goal of this system was to improve the attractiveness of less developed areas within Georgia by offering increased incentives. Georgia counties are re-ranked annually based on updated statistics. See the Job Tax Credit law and regulations for further information. An additional $500 per job is allowed for a business locating within a county that belongs to a Joint Development Authority.
- Tier 1 counties, the state's least developed counties, are those ranked 1 through 71.
- Tier 2 counties are those counties ranked 72 through 106.
- Tier 3 counties are those counties ranked 107 through 141.
- Tier 4 counties are those counties ranked 142 through 159.
Sources and Related Sites:
Georgia Tax Credits
Child Care Tax Credit:
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 cannot be more than 50% of the taxpayer's total state income tax liability for that 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 in which the cost of the operation was incurred.
Headquarters Tax Credit:Companies establishing their headquarters or relocating their headquarters to Georgia may be entitled to a tax credit if the following criteria are met:
- At least fifty (50) headquarters jobs are created
- Within one year of the first hire, $1 million is spent in construction, renovation, leasing, or other cost related to such establishment or reallocation.
'Headquarters' is defined as the principal central administrative offices of a company or a subsidiary of the company. The credit is available for establishing full time jobs. In order to qualify for these credits, the jobs must pay a salary that is a stated percentage above the county average wage in which it is located:
- Tier 1 counties - any percentage above the county average wage
- Tier 2 counties - at least 5% above the county average wage
- Tier 3 counties - at least 10% above the county average wage
- Tier 4 counties - at least 15% above the county average wage
The credit is equal to $2,500 annually per new, full-time job or $5,000 if the average wage of the new fulltime job is 200% or more of the average wage of the county in which the new jobs are located. The credit may be used to offset 100% of the taxpayers Georgia income tax liability in the taxable year. Where the amount of such credit exceeds the taxpayer's tax liability in a taxable year, the excess may be taken as a credit against such taxpayer's quarterly or monthly withholding tax.
Investment Tax Credits:Based on the tier system described above, the 'Investment Tax Credit' allows a taxpayer that has operated an existing manufacturing or telecommunications facility or manufacturing or telecommunications support facility in the state for the previous three years to obtain a credit against income tax liability. The credit is available for expenses directly related to manufacturing or providing telecommunications services. Taxpayers must apply and receive approval before they claim the credit on their returns (using Form IT-APP). Taxpayers must choose either the job tax credit, the investment tax credit or the optional investment tax credit, as only one may be applied in any given year.
Tier 1 - Companies expanding in Tier 1 counties must invest $50,000 to receive a 5% credit. That credit increases to 8% for recycling, pollution control, and defense conversion activities.
Tier 2 - Companies expanding in Tier 2 counties must invest $50,000 to receive a 3% tax credit. That credit increases to 5% for recycling, pollution control, and defense conversion activities.
Tier 3 - Companies expanding in Tier 3 counties must invest $50,000 to receive a 1% credit. That credit increases to 3% for recycling, pollution control, and defense conversion activities.
Tier 4 - Same as Tier 3.
Job Tax Credit:This credit provides for any business or headquarters engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development industries, but does not include retail businesses. If other requirements are met, job tax credits are available to businesses of any nature, including retail businesses, in counties recognized and designated as the 40 least developed counties.
Tier 1 - Companies creating five or more new jobs in a Tier 1 county may receive a $3,500 tax credit.
Tier 2 - Companies creating 10 or more new jobs in a Tier 2 county may receive a $2,500 tax credit.
Tier 3 - Companies creating 15 or more new jobs in a Tier 3 county may receive a $1,250 tax credit.
Tier 4 - Companies creating 25 or more new jobs in a Tier 4 county may receive a $750 tax credit.
Credits similar to those given in Tier 1 counties may be available to companies in selected 'less developed' census tracts in the metropolitan areas of the state. At least 30% of new jobs created in these census tracts must be held by residents of the eligible census tracts or a Tier 1 county. It is important to note, that in these unique cases, the average wages for eligible new jobs must be greater than the lowest average county wage in the state. Also, employers must make health insurance available to employees filling the new full-time jobs. Employers are not, however, required to pay all or part of the cost of such insurance unless this benefit is provided to existing employees.
Credits are allowed for new, full-time employee jobs for five years after the creation of the jobs (starting in year two). In Tier 1 and Tier 2 counties, the total credit amount may offset up to 100% of a taxpayer's state income tax liability for a taxable year. In Tier 3 and Tier 4 counties, the total credit amount may offset up to 50% of a taxpayer's state income tax liability for a taxable year. In Tier 1 counties and "less developed" census tracts, credits may also be taken against a company's income tax withholding. 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. The measurement of new, full-time jobs and maintained jobs is based on average monthly employment.
Optional Investment Tax Credits:
Taxpayers qualifying for the investment tax credit may choose an optional investment tax credit with the following threshold criteria:
Designated Area Minimum Investment Percent Tax Credit
- Tier 1 - $ 5 Million 10%
- Tier 2 - $10 Million 8%
- Tier 3 - $20 Million 6%
- Tier 4 - $20 Million 6%
Taxpayers must apply and receive approval before they claim the credit on their returns (use Form OIT-APP). The credit may be claimed for 10 years, provided the qualifying property remains in service throughout that period. A taxpayer must choose either the regular or optional investment tax credit. Once this election is made, it is irrevocable. The optional investment tax credit is calculated based upon a three-year tax liability average. The annual credits are then determined using this base year average. The credit available to the taxpayer in any given year is the lesser of the following amounts:
- 90% of the excess of the tax of the applicable year determined without regard to any credits over the base year average; or
- The excess of the aggregate amount of the credit allowed over the sum of the amounts of credit already used in the years following the base year.
Port Activity Tax Credit:
Businesses or headquarters engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development that have increased their port traffic tonnage through Georgia ports are eligible for this tax credit. In order to qualify, companies must have increased their port traffic by more than 10% over their 1997 base year port traffic or by more than 10% over 75 net tons, five containers or ten 20-foot equivalent units (TEU's) during a previous 12-month period.
Also note, base year port traffic must be at least 75 net tons, five containers, or 10 TEU's. If this is not the case, the percentage increase in port traffic will be calculated using 75 net tons, five containers, or 10 TEU's as the base. Companies must meet 'Business Expansion and Support Act' (BEST) criteria for the county in which they are located. Companies that create 400 or more new jobs, invest $20 million or more in new and expanded facilities, and increase their port traffic by more than 20% above their base year port traffic may take both job tax credits and investment tax credits.
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, or research and development industries. The credit shall be 10% of the additional research expense over the "base amount," provided that the business enterprise for the same taxable year claims and is allowed a research credit under Section 41 of the Internal Revenue Code of 1986. The credit may be carried forward 10 years but may not exceed 50% of the business's Georgia net income tax liability after all other credits have been applied in any one year. (Note: the base amount must contain positive Georgia taxable net income for all years.)
Retraining Tax Credit:The retraining tax credit allows some employers to claim certain costs of retraining employees to use new equipment, new technology, or new operating systems. The credit can be worth 50% of the direct costs of retraining full-time employees up to $500 per employee per approved retraining program per year. The credit cannot be more than 50% of the taxpayer's total state income tax liability for a tax year. Credits claimed but not used may be carried forward for 10 years.
Small Business Growth Tax Credit:A tax credit is granted for any business or headquarters engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development industries having a state net taxable income which is 20% or more above that of the preceding year if its net taxable income in each of the two preceding years was also 20% or more. The credit shall be the excess over 20% of the percentage growth and shall not exceed 50% of the business' Georgia net income tax liability after all other credits have been applied. The credit is available to companies whose total tax liability does not exceed $1.5 million.
Georgia Tax Exemptions
Electricity Exemption:
Electricity purchased that interacts directly with a product being manufactured is exempt from sales taxes when the total cost of the electricity makes up 50% or more of all the materials being used in making the product.
Manufacturing Machinery Sales Tax Exemption: Provides for an exemption from the sales and use tax for:
- Machinery used directly in the manufacture of tangible personal property when the machine is bought to replace or upgrade machinery in a manufacturing plant presently existing in the state.
- Machinery used directly in the manufacture of tangible personal property when the machine is incorporated as additional machinery for the first time into a manufacturing plant presently existing in the state.
- Machinery used directly in the remanufacture of aircraft engines, parts, and components on a factory basis.
Tangible personal property consumed in the performance of a contract between the U.S. Government and a contractor employing more than 500 or more full-time employees engaged in manufacturing.
Primary Material Handling Sales Tax Exemption:Provides for an exemption from the sales and use tax on purchases of primary material handling equipment which is used directly for the storage, handling, and movement of tangible personal property in a new or expanding warehouse or distribution facility when such a new facility or expansion is valued at $5 million or more and does not engage in direct retail sales.
Georgia's Single Factor Apportionment
Georgia's "Single Factor Gross Receipts" corporate income tax apportionment formula benefits Georgia-based companies with a significant employee base and substantial capital investment in the state. The single factor apportionment formula is an important economic incentive to multi-national companies looking to locate their U.S. headquarters in Georgia.
The existing formula uses weighted factors for: property within Georgia, payroll within Georgia and gross receipts from within Georgia (Figure 1). The single-factor apportionment will apply only the sales factor (gross receipts) (Figure 2). Removing the property and payroll factors allows for financial freedom from the burden of corporate taxes on already purchased goods and services. The result is a significantly lower taxable income for Georgia-based companies that do a substantial level of sales outside of Georgia. By lowering taxable income, the single-factor apportionment formula effectively lowers the overall corporate income tax rate.
The "Single Factor Gross Receipts" formula was phased in over a three year period, beginning on January 1, 2006. During the 2006 tax year, gross receipts represented 80% of the apportionment fraction. In 2007, it increased to 90%, while in 2008 it will increase again to represent 100% of the apportionment fraction.
Georgia is the first southeastern state to adopt the Single Factor Gross Receipts formula. When combined with existing Georgia legislation regarding the "Marketplace" source rule and the seldom-use of the "Throw Back Rule", the single-factor apportionment provides substantial income tax savings to companies headquartered in Georgia.
Three-Factor Apportionment Formula
Apportionment Fraction = Property Factor + Payroll Factor + Sales Factor (gross receipts)
Property Factor = ((Property in Georgia / Total Property)*0.25)
Payroll Factor = ((Payroll in Georgia / Total Payroll) * 0.25)
Sales Factor = ((Gross Receipts in Georgia / Total Gross Receipts) * 0.50)
Single Factor Gross Receipts Formula
Apportionment Fraction =Sales Factor (gross receipts)
Sales Factor = ((Gross Receipts in Georgia/Total Gross Receipts) * 0.25
Sources: Georgia Department of Revenue & the Georgia Department of Economic Development.
Georgia Workforce Training
Quick Start Training:Georgia's Quick Start program is nationally recognized for providing high-quality training services at no cost to new or expanding businesses in Georgia. Since 1967, more than 3,700 companies and 390,000 Georgia workers have benefited from this no-cost program.
You can accelerate employee training and lower expenses by utilizing the customized job-specific training and orientation available through Georgia's Quick Start program. It is administered by the Georgia Department of Technical and Adult Education (GDTAE) and provides flexible, customized training through a network of technical colleges, multiple satellite campuses and four associated universities. Recognized by such publications as Expansion Management and Fortune, Quick Start has offered services ranging from company orientation to advanced manufacturing technology training to productivity enhancement.
Sources and Related Sites:
Georgia Business Financing
Strategic Industries Loan FindThe Strategic Industries Loan Fund (the "Loan Fund") provides loan assistance for the purchase of fixed assets to eligible applicants. These applicants must meet the criteria below:
- Property must be considered a relocating or expansion site.
- The company must in an emerging- or development-stage.
- The company must be in a strategic industry targeted by Georgia.
The Loan Fund is to be used when the needed to fill a financing gap that is unmet by the private sector (including venture capital, angel or institutional investors, traditional commercial financing, developer financing, etc.). It can also be used when the health, welfare and economic security of the citizens of the state are promoted through the recruitment, development and retention of emerging and development-stage companies in strategic industries that are creating higher quality jobs.
Sources and Related Sites:
Georgia Department of Revenue:
http://www.etax.dor.ga.gov/
Georgia Department of Community Affairs:
http://www.dca.state.ga.us/
One Georgia Authority:
http://www.onegeorgia.org/
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Georgia Transportation Infrastructure, Logistics, & Market AccessGeorgia Transportation Infrastructure & Logistics Overview
Georgia has built an unsurpassed logistics and transportation network that enables you to move your products quickly and efficiently. According to the Porter Study, conducted by Michael Porter of Harvard University, Georgia has the fourth largest logistics hub in the U.S. The report states that this ranking is a result of Georgia's outstanding road infrastructure, deepwater port facilities, and Hartsfield-Jackson Atlanta International Airport. The logistics and transportation industries in the state provide an unparalleled infrastructure that not only saves time and money, but provides a foundation for competing in an increasingly global marketplace.
Georgia Airports
Georgia has 144 public and private airports. General aviation benefits from the 107 public-use airports include access to advanced weather tracking systems and navigational aids. Regularly scheduled service by commercial air carriers is available in Albany, Athens, Atlanta, Augusta, Brunswick, Columbus, Macon, Savannah, and Valdosta.
Atlanta's Hartsfield-Jackson International Airport is the nation's number one airport hub and the heart of Georgia's transportation system. Sixteen domestic and thirteen foreign air-carriers provide nonstop or same-plane service to 180 cities throughout the world. This hub of air travel allows business persons to reach 80% of the U.S. market within two hours of flight time, and any major North American city within four hours of flight time. With Atlanta's location in the eastern end of the Sunbelt, the city serves as the South's gateway to Latin America, Europe and Asia. International flights reach 45 cities and 30 countries, making the world's business centers easily accessible.
In addition to passenger service, Hartsfield-Jackson International is a leading cargo hub. More than 900,000 tons of cargo passes through the airport each year. Extensive cargo facilities service all cargo carriers, including 24 carriers that carry only cargo.
Georgia Airports: Sources and Related Sites
Georgia Interstates and Highways
Success in today's fast-paced marketplace often depends on who can deliver their goods most efficiently. Companies must have streamlined and effective ways to receive their raw materials and dispatch their finish product to customers. Georgia is conveniently located near the "elbow" of the U.S. Sunbelt. Interstates 16, 24, 59, 75, 85, & 95 cross the state providing rapid access to the region's growing market area. Interstate 285 is a perimeter road around Atlanta and Interstates 185, 475, 516, 520, 575, & 985 are strategically placed for moving vehicles to and from Georgia's interstate corridors.
In addition to its interstate connectivity, Georgia has 20,000 miles of federal and state highways. Georgia's proximity translates into two or fewer truckload days from 82% of the U.S. industrial market and 79% from the country's largest consumer markets. In Georgia, superior connectivity and the lowest fuel tax in the U.S., make highway transportation a cost effective and efficient way to move your products to market.
Some quick Facts about Georgia's public road network:
- 81,829 miles of county roads
- 19,095 miles of state highway
- 13,731 miles of city streets
- 1,244 miles of interstate highways
To maintain those roadways, GDOT receives the proceeds from the state's motor fuel tax and state appropriations, as well as funds from the U.S. Department of Transportation. One of the GDOT major construction and maintenance programs is the 'Governor's Road Improvement Program' (GRIP). This program supports a network of economic development highways that connect most of Georgia's cities to the interstate highway system. The GRIP system will ultimately ensure that 98% of all areas in Georgia are within 20 miles of a four-lane highway. As of 2002, there were 18 GRIP highways and 3 truck-access routes totaling 2,839 miles of roadway. Some well-known examples of GRIP projects are the Golden Isles Parkway, the Fall Line Freeway, and the South Georgia Parkway.
Georgia Interstates & Highways: Sources and Related Sites:
Georgia Deepwater Ports
Georgia companies have another gateway to the world through the state-of-the-art deepwater ports in Savannah and Brunswick. Operated by the Georgia Ports Authority, they are the fifth largest in the country and serve as south Atlantic's premier auto-processing facility. As one of the busiest ports on the U.S. East Coast, Savannah handles approximately 80 percent of the ship-borne cargo entering Georgia. Specializing in automobile importing, Brunswick handles nearly all of Georgia's remaining shipping traffic. Combined with inland barge operations in Bainbridge and Columbus, these waterways accelerate the pace of commerce.
Georgia Port Authority
The purpose of the Georgia Ports Authority (GPA), according to the agency's mission statement, is "to develop, maintain, and operate ocean and inland river ports within Georgia; foster international trade and new industry for state and local communities; promote Georgia's agricultural, industrial, and natural resources; and maintain the natural quality of the environment."
The statement declares that the GPA promotes trade between Georgia and foreign nations and encourages the development and use of Georgia's agricultural, industrial, and natural resources while defending the quality of the natural environment. The GPA was created in 1945 by an act of the Georgia legislature in response to the economic boom of the post-World War II era. The state's two deep-water ports, Savannah and Brunswick, each had a long history of trade and commerce, but the creation of the GPA marked the beginning of their development by an official state agency.
The GPA is governed by a board of directors consisting of thirteen members appointed by the governor for four-year staggered terms. Members are appointed from throughout the state and meet monthly. Administrative offices are located in Savannah.
Georgia Ports: Sources and Related Sites:
Georgia Rail Roads
CSX Transportation and Norfolk Southern Corporation offer comprehensive rail service throughout the nation, including Georgia. Georgia has nearly 5,000 miles of railroad, predominantly operated by these two companies, with modern and efficient classification yards located throughout the State.
To help maintain light-density railroad routes important to the state's rural areas, GDOT owns more than 400 miles of rail lines that are leased to commercial operators. Rail passenger service is provided by AMTRAK, with stops in Atlanta, Gainesville, Jesup, Savannah, and Toccoa. A network of commuter rail services is being planned for the metropolitan Atlanta area.
CSX and Norfolk Southern have made substantial commitments to their intermodal capabilities, with six intermodal terminals throughout the state. As a result, Atlanta has emerged as one of the nation's rail hubs. Expedited all-piggyback and container train services are available between the Savannah container port and Atlanta, with piggyback service available to all major communities.
Georgia Railroads: Sources and Related Links:
Georgia Department of Transportation:
http://www.dot.state.ga.us/
National Association of Foreign Trade Zones:
http://www.naftz.org/
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Georgia Workforce Training Programs
Georgia Workforce Training Programs Introduction
Businesses in Georgia are fueled by skilled and knowledgeable employees. Maintaining an adept workforce is imperative for keeping your business successful in today's ever-changing competitive environments. You can nurture your personnel and empower your workforce by capitalizing on the tools and resources available in Georgia, which is quickly gaining a national reputation for developing unique and diverse cutting-edge programs designed to enhance today's business workforce.
Quick Start Training:Georgia's Quick Start program is nationally recognized for providing high-quality training services at no cost to new or expanding businesses in Georgia. Since 1967, more than 3,700 companies and 390,000 Georgia workers have benefited from this no-cost program.
You can accelerate employee training and lower expenses by utilizing the customized job-specific training and orientation available through Georgia's Quick Start program. It is administered by the Georgia Department of Technical and Adult Education (GDTAE) and provides flexible, customized training through a network of technical colleges, multiple satellite campuses and four associated universities. Recognized by such publications as Expansion Management and Fortune, Quick Start has offered services ranging from company orientation to advanced manufacturing technology training to productivity enhancement.
ICAPP:
Successful companies are continuously seeking ways to enhance their intellectual capital. As companies in Georgia face changing workforce demands, the state of Georgia will continue to create innovative solutions to ensure economic prosperity for you and your employees. Georgia's Intellectual Capital Partnership Program (ICAPP) is the University System of Georgia's economic development program.
Created in 1995, ICAPP connects the intellectual resources of Georgia's 34 public college and universities to the state's business community in innovative ways. The ICAPP staff and a team of economic development leaders from each campus help Georgia businesses tap into the University System of Georgia for College-educated employees, access to the latest research, and access to business and operations advice.
With 233,000 students enrolled in degree programs, 400,000 students enrolled in continuing education courses and 35,000 faculty and staff leading the charge, Georgia is uniquely positioned to provide unparalleled higher-education support to businesses looking for dynamic talent. Men and women who are interested in becoming ICAPP students are encouraged to contact their school of choice to learn more about the program, enrollment requirements and the costs involved.
Sources and Related Sites:
GeorgiaHIRE:
http://www.georgiahire.com/
Board of Regents of the University System of Georgia (USG):
http://www.usg.edu/
Georgia Department of Technical and Adult Education:
http://www.dtae.org/
Georgia Department of Labor:
http://
www.dol.state.ga.us/
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Georgia’s Tax Climate
Georgia's State/Local Tax Burden Below National Average
Estimated at 10.3% of income, Georgia’s state/local tax burden ranks as only the 32nd highest (of the 50 states), below the national average of 11.0%. Georgia taxpayers pay $3,615 per capita in state and local taxes on per-capita state income of $35,210.
Georgia's Individual Income Tax System
Georgia's personal income tax system consists of six separate brackets with a top rate of 6% kicking in at an income level of $7,000. That top rate ranks 23rd highest among states levying an individual income tax. In 2004, individual income tax collections were $766 per person, which ranked 19th highest nationally.
Georgia's Corporate Income Tax System
Georgia's corporate tax structure consists of a flat rate of 6% on all corporate income. Among states levying corporate income taxes, Georgia's top rate ranks 6th lowest nationally. In 2004, corporate tax collections were $55 per capita, ranked 39th highest nationally.
Georgia Levies Sales Tax below National Median;
Gasoline Taxes Lowest in the Nation
Georgia levies a 4% general sales or use tax on consumers, below the national median of 5%. In 2004, state and local governments combined collected $796 per person in general sales taxes, which ranked 24th nationally. Georgia's gasoline tax stands at 7.5 cents per gallon, which is the lowest in the nation. However, the state's general sales tax is applied to purchases of gasoline, and localities are allowed to levy "local option" sales taxes on gasoline. Georgia's cigarette tax stands at 37 cents per pack of twenty, which ranks 40th nationally. The sales tax was adopted in 1951, the gasoline tax in 1921 and the cigarette tax in 1937.
Georgia’s Property Tax
Property in Georgia is assessed at 40% of the fair market value unless otherwise specified by law. The tax rate, or millage, in each county is set annually by the board of county commissioners, or other governing authority of the taxing jurisdiction, and by the Board of Education. A tax rate of one mill represents a tax liability of one dollar per $1,000 of assessed value. The average county and municipal millage rate is 30 mills; the state millage rate in each county is 0.25 mills.
Municipalities also assess property taxes based upon county-assessed values and rates established by the municipal governing authority.
Sources: The Tax Foundation & the Georgia Department of Revenue, 2007.
Georgia’s Unemployment Insurance Tax
Every industry in Georgia pays an unemployment insurance tax as required by federal law.
Georgia's initial tax rate is 2.7 % of each employee's first $8,500 in earnings. The correct maximum weekly benefit paid is $284. The maximum benefit will be raised to $300.00 in 2003. (As of December 31st, 2005).
Federal Tax Burdens and Expenditures: Georgia is a Beneficiary State
Georgia taxpayers receive about the same federal funding per dollar of federal taxes paid compared to the average state. For every dollar of federal tax collected in 2005, Georgia citizens received approximately $1.01 in federal spending. This ranks the state 32nd nationally and represents a slight increase from 1995 when Georgia received $.96 per dollar of taxes in federal spending (then ranking it at 33rd highest).
Tax Freedom Day Arrived on April 22nd in Georgia
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2007, Georgia taxpayers had to work until April 22nd to pay their total tax bill, ranking them 31st nationally. That's 8 days earlier than national Tax Freedom Day (April 30th).
Sources: The Tax Foundation, 2007.
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Georgia Education SystemGeorgia Education System Introduction:
Education is a high priority in Georgia, both for the benefit of our residents and to ensure that employers have an ample source of highly-trained employees readily available. The citizens of Georgia believe in public education and life-long learning skills to keep pace with the increasing demands of a global economy. In Georgia, education is responsive to the needs of both the individual and business.
University System of Georgia:
Georgia's world-class universities and colleges provide a unique educational opportunity that is second to none. The University System of Georgia offers students' higher education options at 34 institutions throughout the state providing a wide range of academic programming, including certificates, associate, baccalaureate, masters, doctoral and professional degrees.
Some quick facts about the University System of Georgia:
• 4th largest university system in the country
• 233,000 students
• 9,000 faculty (3,958 full-time)
• 13 State universities
• 4 Research universities
• 13 Two-year universities
• 2 Regional universities
• 2 State colleges
Sources and Related Sites:
Georgia's Technical & Adult Education:
As evidence of Georgia's commitment to life-long learning, the Georgia Department of Technical and Adult Education (DTAE) offers easy access to a number of programs including technical education, customized business and industry training, and adult education classes. DTAE works with local business and education partners to bring a system of educational programs that provide a broad range of career opportunities.
In Georgia, our technical education programs are part of a seamless education process where credits can be efficiently transferred from secondary schools to technical colleges and to the university system. Georgia is a world-leader in technical education.
Sources and Related Sites:
Georgia's HOPE Scholarship:
Education and graduation are the keys to economic prosperity, both for Georgians and the state's economy. Together they build a strong foundation for today's young people and ensure a future full of hope.
Georgia's HOPE scholarship program was introduced in 1993. HOPE stands for Helping Outstanding Pupils Educationally. Since its inception, more than $2.7 billion in financial assistance have been awarded to more than 850,000 deserving Georgia students attending state colleges, universities and technical colleges. Financed by the Georgia Lottery, the scholarship pays for the tuition, books and fees of high-achieving, eligible Georgia students who maintain a "B" average. The financial aid offices of 105 postsecondary schools in Georgia determine HOPE eligibility.
Since 1993, enrollment at Georgia's two-year, four-year and technical colleges has increased and average SAT scores have risen by 32 points. More and more of the state's best students are choosing to continue their education in Georgia.
Sources and Related Sites:
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Georgia Utilities: Electricity, Natural Gas & TelecommunicationsGeorgia Electricity
Georgia's power suppliers include 42 locally managed, customer-owned electric membership corporations; an investor-owned utility; and municipal utilities. These companies offer highly reliable electrical service using redundant transmission, substations and/or feeder circuits. The Integration Transmission System (ITS), which allows the electric utilities to use each other's transmission lines, eliminates costly duplication and guarantees each power supplier the same ability to serve "customer choice" facilities. The ITS includes a 500 kV, 230kV, and 115 kV transmission grid covering the state which is powered by generating plants primarily supplied by coal. New businesses locating in Georgia with connected loads of at least 900 kW have the option to choose among competing power suppliers. Customer Choice is discussed in detail below.
Georgia Electricity Providers: Customer Choice
Although the state is not officially a "deregulated" market, industrial/commercial customers with a load of 900 kW or more can choose their supplier from any of the state's electricity providers. Some retail competition has been present in Georgia since 1973 with the adoption of the 'Georgia Territorial Electric Service Act'. This Act enabled customers with manufacturing or commercial loads of 900 kW or greater a one time choice in their electric supplier. It also provides eligible customers the opportunity to transfer from one electric supplier to another, provided all parties agree. The Public Service Commission resolves all territorial disputes and customer complaints involving customer choice and approves requests for transfer of retail electric service.
This "open market" system has allowed Georgia to remain highly competitive in terms of power costs and services. Georgia's power suppliers also agreed to joint ownership of the state's transmission lines and substation facilities, eliminating costly duplication and guaranteeing each supplier has the ability to serve a customer-choice facility. This system allows Georgia power suppliers to provide corporate customers with the most cost-effective, reliable service possible.
A property's location, relative to city limits as of March 29, 1973, helps determine its eligibility for customer choice electrical service. If the property falls outside the city limits (as defined on that date), any electricity supplier may bid for electric load that is 900 kW connected load or greater. If the property falls within the city limits, primary and secondary suppliers within the city are given certain rights to serve in order to protect their service territory and their investments. Primary suppliers have the exclusive right to service any electric load (regardless of size) if there is no secondary supplier for that city. If there is a secondary, several rules exist. For more information, please contact Location Georgia.
Georgia Electricity: Sources and Related Sites
Georgia Natural Gas
Georgia's natural gas utilities provide about 43% of the energy used in our industries. Supplied by 4 interstate pipelines, natural gas is available in both firm and interruptible quantities to more than 80 municipal gas systems in the state. Throughout the state, 84 municipal gas systems provide natural gas to their residents. A unique aspect of Georgia's natural gas industry is that prices for municipal gas service are not subject to PSC regulation. Reasons for this are described below. Liquefied natural gas (LNG) storage facilities are used to handle peak loads.
Natural Gas Deregulation
In 1997, the General Assembly adopted a new regulatory model for natural gas distribution companies in which competitive marketers have an opportunity to provide natural gas services to Georgia consumers. The General Assembly found market-based competition as the best mechanism for selecting and providing natural gas services at the most efficient price.
The 'Natural Gas Competition and Deregulation Act' was enacted in 1997. The purpose of the Act is to:
- promote competition
- protect the consumer during and after the transition to competition
- maintain and encourage safe and reliable service
- deregulate those components of the industry subject to actual competition
- continue to regulate those services subject to monopoly power
- promote an orderly and expeditious transition of the industry toward fully developed competition
- provide for rate-making methods which include the use of straight fixed variable rate design, the recovery of certain stranded costs and the use of alternative forms of rate regulation
- allow gas companies the opportunity to compete effectively in a competitive marketplace. O.C.G.A. § 46-4-.151(b)(1)-(8).
The Act was amended in 1999 relating to the topic of customer assignment, and again in 2001, addressing issues of pricing, billing, meter reading and some other consumer concerns. In 2002, the General Assembly passed the Consumers' Relief Act to enact a Consumer Bill of Rights and to establish a regulated provider for low-income and high risk customers. This Act increased consumer protection.
Soon after the passage of the 'Natural Gas Competition and Deregulation Act', the Atlanta Gas Light Company (AGLC) elected to open its territory to competition. By mid-1998, the Public Service Commission concluded its review of AGLC's rates and notice of election. In 1998, the PSC approved a new rate schedule and laid out additional conditions for the transition to competition, as required by the Act.
At that time, Atlanta Gas Light Company became a pipes-only gas company. Ten certified natural gas marketers now serve customers on AGLC's system. The prices charged by marketers are market-based, but rates for AGLC's distribution services are still regulated by the PSC.
Atmos Energy Corporation is Georgia's only local distribution company, as they have not opened their market to competition. Therefore, they remain fully regulated by the PSC.
Information for those seeking "Marketer Certification':
To obtain a certificate of authority, an applicant must demonstrate to the Commission's satisfaction that it possesses adequate financial and technical capability to sell or offer to sell natural gas within the state. 'Rules Regarding Marketer Certification' contains the determining criteria for issuing of a certificate of authority. Nineteen companies filed applications for 'Marketers' Certificates' in late-1998. Others have since applied and been granted certificates.
Depending upon their location, natural gas customers in Georgia can purchase gas from one of three types of providers:
- an investor-owned local distribution company.
- a natural gas marketer.
- a municipal gas system.
Georgia Natural Gas: Sources and Related Sites
Georgia Telecommunications Infrastructure & Providers
Telecom infrastructure is the backbone of today's corporate world, and Georgia offers businesses a state-of-the-art infrastructure. In fact, the first fiber-optic cable was manufactured in Georgia. Today, the state is the hub for the country's two-largest fiber-optic trunk routes, with more than 500,000 miles of cable buried underneath state highways. With at least 1,850 points of presence, the state also leads the nation in the deployment of ISDN technology.
Fiber Optic Lines
Long distance carriers, local exchange carriers, cable television companies, and competitive access providers have placed more than 500,000 miles of fiber optics all across Georgia. This includes 38 fiber optic trunk lines into and out of Atlanta. Thirteen of these routes are owned by long distance carriers and 25 are owned by BellSouth, which provides local telephone service to 85% of Georgia residents.
Atlanta is a transmission hub for the two largest fiber optic trunk routes in the U.S., which link the major population centers in North America. These Atlanta routes also provide fiber optic links to points across Europe, Japan, Australia and South America.
Long Distance Providers and Points of Presence
More than 250 long distance companies serve Georgia and more than 1,850 Points of Presence (POPs) are available at 350 locations throughout the state. Within the Atlanta Metro area, more than 950 POPs can be accessed at over 180 locations.
Additional Technology
Georgia has more than a dozen companies offering commercial leasing of satellite uplink services. They provide fixed, mobile and voice-and-data-only uplinks. The Georgia Statewide Academic and Medical Systems (GSAMS) video network interactively connects 400 distance learning/teleconferencing sites, including state colleges and universities, technical and adult education facilities and telemedicine sites. This gives the residents of Georgia's smallest communities access to highly specialized diagnostic equipment. SmartRing service, which provides an alternate ring transmission path in the event of equipment or facility failure, is available in metro Atlanta. In addition, Asynchronous Transfer Mode (ATM) switches, a cutting-edge technology that facilitates faster and more reliable all-optical transmission of data, are also available.
Georgia Telecommunications Deregulation
The Georgia legislature effectively deregulated the state's telecommunications services well ahead of the national debate. This development, combined with increased access to local and national capital, has propelled the state's growth in telecommunications and information technology services and products. It has also expanded the competitive choices available for all local businesses.
Georgia Telecommunications & Infrastructure: Sources and Related Sites:
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