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Georgia Business Incentives
Georgia continues to attract successful companies due to a pro-business environment, a talented workforce, world-class infrastructure and unparalleled access to the world market. We offer a performance-based package of business assistance designed to foster success for companies and the Georgia communities they call home. In combination with inducements available from many local municipalities and counties, we can help your new or expanding venture get the good start it needs and continue to be successful in the future.
Sources and Related Sites:
Georgia Tax Formula Advantage
Single Factor Apportionment
In 2005, Georgia became the first state in the Southeast to adopt a “Single Factor Gross Receipts” apportionment formula. As indicated by its name, the new “Single Factor Gross Receipts” formula will treat a company’s Gross Receipts, or sales factor, as the only relevant factor in determining the portion of that company’s income that is subject to Georgia income tax.
Previously, Georgia used a three-factor apportionment formula, but for the 2008 tax year and thereafter, Georgia property and payroll will not factor into the calculation of a company’s corporate income tax. This new single sales factor apportionment formula significantly reduces the effective rate of Georgia income taxation of Georgia-based manufacturing, distribution and service companies with substantial sales to customers outside Georgia.
Example: Assume that, for the 2009 tax year, In-State Manufacturing Co., Inc. has the following total overall taxable income and gross receipt sales in Georgia as compared to total gross receipt sales:
Taxable Income: $10 million
Percent of Gross Receipts in Georgia: 13%. |
Accordingly, in 2009, only $1.3 million (.13 x $10 million) of In-State Manufacturing Co., Inc.’s income would be subject to Georgia’s 6% corporate income tax under the new Single Factor Gross Receipts formula. If the sales in Georgia compared to total sales were less than 13%, then the amount subject to Georgia’s income taxes would also be less. In addition, Georgia does not use the so-called “Throw Back Rule,” under which many states tax income from sales of goods or services to out of state customers if
the customer’s state does not already tax that income.
Franchise or Corporate Net Worth Tax
The annual tax based on net worth (capital stock + retained earnings) is called a license or occupational tax in Georgia. Most states refer to the tax on net worth either as a franchise or privilege tax. Domestic corporations are taxed on 100 percent of net worth. Foreign (out-of-state) corporations are taxed only on net worth apportioned to Georgia. This tax is capped in Georgia at a maximum amount of $5,000 annually.
Georgia 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.
For some of the credits, the amounts are dependent on the “tier status” of the community. Tier status refers to an annual four-tier ranking of the economic vitality of Georgia’s counties. The highest credits are offered in the counties with the greatest need (Tier 1 and 2 counties), while the most prosperous counties (Tier 3 and 4 counties) offer lesser amounts.
Job Tax Credit
Strategic industries such as distribution, technology, manufacturing, telecom,
processing companies and their headquarters qualify for Georgia’s Job Tax Credit. Depending
on the community’s tier, companies must create between five and 25 net new jobs per year to
qualify. For each year (up to five years) the jobs are maintained, qualified companies can claim
a tax credit with a value of $750 – $3,500 per job, per year. An additional $500 credit is offered
in counties that participate in a multi-county joint development authority. Unused job tax credits
may be carried forward ten years. Increased job tax credits, equal to Tier 1 credits, are also
allowed for companies that create jobs in less developed pockets of metro areas, regardless
of the county’s tier. Georgia has 40 counties that offer job tax credits to retail and business
operations other than those listed above. See the 2009 Georgia Job Tax Credit Tiers by County Map.
| Tier |
Job Tax Credit $ |
Jobs |
Use of Credits |
Carry Forward |
| 1 |
$3,500 - $4,000* |
5 |
100% of Tax Liability Excess to Withholding Tax up to $3,500 |
10 Years |
| 2 |
$2,500 - $3,000* |
10 |
100% of Tax Liability |
10 Years |
| 3 |
$1,250 - $1,750* |
15 |
50% of Tax Liability |
10 Years |
| 4 |
$750 - $1,250* |
25 |
50% of Tax Liability |
10 Years |
In the table immediately above, the (*) denotes the inclusion of the $500 bonus for counties that are members of a Joint Development Authority (JDA). This addition of the $500 bonus creates the maximum Job Tax Credit amount which can be awarded to a business.
Example: Taxpayer creates 50 jobs in a Tier 1 county offering a $4,000 credit, receives $1 million in tax credits over five years to reduce or eliminate Georgia income tax:
50 Jobs x $4,000 x 5 years = $1,000,000. |
Opportunity Zone Job Tax CreditsLocal governments which undertake redevelopment and revitalization efforts in certain older commercial and industrial areas can now qualify those areas for the State’s maximum state job tax credit of $3,500 per job. The credits are available for areas designated by the Georgia Department of Community Affairs (GA DCA) as “Opportunity Zones”. The incentive – which is available for new or existing businesses which create two or more jobs – are credits which can be taken against 100% of the business’ income tax liability and state payroll withholding. Job Tax Credits (JTCs) awarded in an Opportunity Zone are applicable to all businesses/industries.
Source: Georgia Department of Community Affairs, 2009.
Port Tax Credit BonusAvailable to taxpayers who increase imports or exports through a Georgia port by 10 percent over the previous year. The port tax credit bonus can be used with either the Job or the Investment Tax Credit program. Unused credits may be carried forward 10 years. The Georgia Ports are indicated on the 2009 Georgia Job Tax Credit Tiers by County Map.
Port Job Tax Credit Bonus for Job Tax Credits
The port tax credit is a $1,250 per job bonus for taxpayers with qualified increases in shipments through a Georgia port. The $1,250 is added to the job tax credit.
Example: Taxpayer that creates 50 jobs in a Tier 1 county is eligible to receive the port bonus, adding $1,250 to $4,000 job tax credit for total credit of $5,250 for each job. Taxpayer is eligible for $1,312,500 in tax credits spread over five years to reduce or eliminate Georgia income tax:
50 jobs x $5,250 x 5 years = $1,312,500. |
Port Tax Credit Bonus for Investment Tax Credits
The 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 5 percent of the qualified investment in expenses directly related to manufacturing or providing telecommunications services with the credit increasing to 8 percent for recycling, pollution control and defense conversion. The port bonus is limited to 50 percent of income tax liability.
Example: Taxpayer qualifies for a port bonus in a Tier 4 county, invests $100 million in a manufacturing plant plus $25 million in recycling equipment. Taxpayer is eligible for a $7 million investment tax credit to reduce or eliminate Georgia income tax:
[$100 million x 5%] + [$25 million x 8%] = $7,000,000. |
Quality Jobs Tax Credit
Companies that create at least 50 jobs and pay wages at least 110% of the county average are eligible to receive a credit of $2500-$5000 per job, per year, for up to five years, based on the scaled system below. Credits may be used to offset the company’s payroll withholding once all other tax liability has been exhausted and may be carried forward ten years.
| Payroll Requirement (% of County Average) |
Credit Value per Person |
| 110% |
$2,500 |
| 120% |
$3,000 |
| 150% |
$4,000 |
| 175% |
$4,500 |
| 200% or greater |
$5,000 |
Mega Project Tax Credit
Companies that employ at least 1,800 net new employees, and either invest a minimum of $450 million or have a minimum annual payroll of $150 million may claim a $5,250 per job per year tax credit for the first 5 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.
Retraining Tax Credits A company’s direct investment in training can be claimed as a tax credit – 50
percent of the employer’s direct cost up to $500 per, per approved training program. The total amount of credit cannot exceed $1250 per employee per year. Training programs must be approved by the Technical College System of Georgia. This tax credit can be used to offset up to 50 percent of a company’s state corporate income tax liability. The credit is available to all Georgia businesses that file a …Georgia income tax return. The retraining program must be for quality and productivity enhancements and certain software technologies. Unused credits can be carried forward 10 years. These credits can be combined with other tax credits.
Child Care Tax Credits Child Care credits range from 75 percent to 100 percent of costs. The credits are
available to all businesses in the state. The child care facility must be licensed by the state. All child care
credits can be used against 50 percent of taxpayer’s income tax liability in a given year.
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 percent each year]. Unused child care credits from the purchase or construction of a child care facility can be carried forward three years.
Employers who provide or sponsor child care for employees are eligible for a credit against Georgia income tax equal to 75 percent of employers’ direct costs. Credits that are related to the operating cost of the facility may be carried forward five years.
| Example: Taxpayer has direct child care cost of $400,000 in a given year and is eligible to receive a $300,000 tax credit [75% x $400,000]. Taxpayer invests $1 million for the construction of a childcare facility and is eligible for a credit in the first year of $100,000 [10% x $1 million]. The taxpayer can add the $300,000 tax credit and the $100,000 credit if the total credits do not exceed 50% of the tax liability in a given year. |
Georgia Corporate Tax Exemptions
Sales and Use Tax Exemption
Qualified equipment purchases or leases are exempt from sales tax when the equipment purchased is used in the manufacturing process. Under certain conditions, primary material handling equipment (in warehouses and distribution centers); computer equipment; Class 100 (or less) clean room machinery, equipment and materials; and electricity used directly as a raw material in the manufacturing process can also be exempted.
Sales & Use Tax Exemption for Some Controlled Substances
- Controlled Substances Sold To Authorized Medical Entities:
Those controlled substances and dangerous drugs, which are either sold or are distributed without charge to physicians, dentists, clinics, hospitals, or any other person or entity located in Georgia by a pharmaceutical manufacturer or distributor, are exempt from Georgia Sales and Use Taxes.
- Controlled Substances Used for Clinical Trial Purposes:
Controlled substances which are lawfully dispensed without charge for the purposes of a clinical trial approved by an institutional review board which has been accredited by the Association for the Accreditation of Human Research Protection Programs are exempt from Georgia Sales and Use Taxes.
This tax exemption is applicable to qualifying businesses due to House Bill #59 enacted in 2009 by the General Assembly of Georgia.
Source: Georgia General Assembly, 2009.
Inventory Tax Exemption
Many Georgia counties exempt from property tax up to 100 percent of qualified raw material, work-in-process and finished goods inventory under Georgia’s local-option “Freeport” law. In most of these counties, distribution center and warehouse inventories are exempt if the inventory is destined to be shipped out of state.
This tax exemption is now applicable to all businesses – with inventory subject to ad valorem taxation – due to House Bill #482 enacted in 2009 by the General Assembly of Georgia.
Enterprise Zone Tax Exemption/Abatement Incentives
Businesses that locate within areas that have been designated by the Georgia Department of Community Affairs (GA DCA) as “Enterprise Zones” can receive the following incentives.
- Property Tax Exemption:
Business will be exempt from state, county, and municipal ad valorem taxes that would otherwise be levied on the qualifying business and service enterprises not to exceed the following schedule.
(A) One hundred percent of the property taxes shall be exempt for the first five years;
(B) Eighty percent of the property taxes shall be exempt for the next two years;
(C) Sixty percent of the property taxes shall be exempt for the next year;
(D) Forty percent of the property taxes shall be exempt for the next year; and
(E) Twenty percent of the property taxes shall be exempt for the last year.
- Abatement or reduction in occupation taxes, regulatory fees, building inspection fees, and other fees:
Source: Georgia Department of Community Affairs, 2009.
Moratorium on Property Taxes
As of 2009, a moratorium is declared on all increases in the assessed value of all classes of property which are subject to ad valorem taxation. This tax advantage is applicable to all businesses due to House Bill # 233 enacted in 2009 by the General Assembly of Georgia.
Source: Georgia General Assembly, 2009.
Hiring, Training and Education Assistance
Hiring Assistance from the Georgia Department of Labor
Georgia’s Department of Labor (DOL) assists companies in recruitment by posting job notices, collecting and screening applications and/or résumés, providing interview space, scheduling interviews and hosting job fairs. DOL will work with private employment agencies that list jobs with the state.
Hiring Assistance from the Georgia Work Ready Program
Georgia Work Ready can help you hire the best people and boost your bottom line. It's available at no cost for companies meeting minimum hiring requirements and is easy to access through the state's network of technical colleges. Georgia companies can implement Work Ready two ways - through job profiling and Work Ready Certificates. Work Ready job profiles identify the job tasks and skill levels necessary to be successful in any job. Companies match those profiles to employees' Work Ready Certificates - which measure core skills - to ensure the right person is placed in the right job every time.
Source: Georgia Work Ready, 2009.
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.
HOPE Scholarship and Grant
Georgia’s HOPE Scholarship provides free tuition at one of Georgia’s 34 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 no cost through Georgia’s technical colleges and schools. These programs can be advantageous to relocating families with children, and also for a company training employees through local technical colleges.
Assistance for Small Business and 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.
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 in the current year. For capital investments
greater than $410,000, the tax write-off is reduced dollar for dollar.
Entrepreneur and Small Business (ESB) Loan 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.
Assistance for Georgia's Existing Industries
In addition to qualifying for all incentive programs that new businesses do, existing Georgia firms can take advantage of several unique programs.
Existing Industry Job Tax Credit BonusCompanies that have been doing business in Georgia for at least three years can claim a one-time additional $500 tax credit for every net new job they add between 2006 and 2011.
Investment Tax Credits
Existing Georgia manufacturing or telecommunications companies that have
operated a facility in Georgia for at least three years, and which make a minimum $50,000 additional
qualified capital investment, may claim from 1 percent to 5 percent (depending on tier status) of the new investment as a tax credit. Higher credits (3 percent to 8 percent, depending on tier status) 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 tax liability and carried forward for ten years.
| Tier |
Investment Credits |
Limits of Credits |
Carry Forward |
Minimum Investment |
| 1 |
5% - 8%* |
50% of Tax Liability |
10 Years |
$50,000 |
| 2 |
3% - 5%* |
50% of Tax Liability |
10 Years |
$50,000 |
| 3 |
1% - 3%* |
50% of Tax Liability |
10 Years |
$50,000 |
| 4 |
1% - 3%* |
50% of Tax Liability |
10 Years |
$50,000 |
*Recycle, Defense Conversion, Pollution Control.
Example: Taxpayer in a Tier 1 county invests $100 million in a manufacturing plant plus $25 million in recycling equipment. Taxpayer is eligible for a $7 million tax credit to reduce or eliminate Georgia income tax:
[$100 million x 5%] + [$25 million x 8%] = $7,000,000. |
Optional Investment Tax CreditsThe optional investment tax credit can be taken in lieu of the investment tax credit. The credits range from 10 percent to 6 percent of qualified capital investment. This credit is available to taxpayers that qualify for investment tax credits, 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 usable tax credit could be very small and
possibly zero.
R&D Tax CreditTen percent of a company’s increased qualified research and development expense over its gross receipts may be claimed as a tax credit. Georgia taxpayers must qualify for a research credit under the IRS code to be eligible. Emerging companies can apply the credit to offset their payroll withholding once all other tax liability has been exhausted for their first 5 years.
Example: Taxpayer has base R&D expenditures of $192,000 per year. The current year’s R&D expenditures are $5,192,000. Taxpayer is eligible to receive an income tax credit of $500,000 to reduce or eliminate Georgia income tax liability:
($5,192,000 - $192,000) x 10% = $500,000. |
Centers of InnovationGeorgia provides a number of Centers of Innovation across the state, each supporting a different strategic industry sector, where innovative companies can accelerate their growth by tapping university-sponsored research, university and private sector talent and other state and private sector resources.
Georgia Tech FaciliTechGeorgia Tech can partner with Georgia companies to offer access to world-class talent and an array of services to help with issues related to process productivity, quality and international standards, energy and environmental management, lean enterprise transformation, trade adjustment assistance, new product design and development, and information technology strategies.
Assistance for Georgia's Strategic Industries
Life Sciences Facilities FundThe purpose of the fund is to provide loan assistance for the purchase of fixed assets to assist with the expansion or relocation of emerging or development-stage life-science companies targeted by Georgia. Applicants for the loan should be development-stage companies that are creating commercially promising technologies and higher quality jobs.
The Facilities Fund is intended to be used when 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.) and/or to provide an inducement for the expansion of life sciences companies within the State
There is no maximum loan amount, although generally the loan amount may not be more than 15% of the fixed-asset needs of the company’s Georgia location
Source: Georgia Department of Community Affairs, Atlanta Development Authority, 2009.
Strategic Industries Loan Fund
Companies that have operations in one of Georgia’s strategic industries and demonstrate one or more of the following criteria are eligible to receive loans to finance fixed assets:
a) high potential for commercialization
b) the creation of quality jobs that demonstrate full benefits (including health insurance and retirement) and pay above average wages for the subject county
c) successful experience in a Georgia incubator or Center of Innovation or
d) existence of a unique partnership with one of the Georgia’s research universities and state colleges. |
Identified strategic industry sectors in Georgia include but are not limited to: aerospace, agribusiness, energy and environmental, healthcare, eldercare, life sciences, logistics and transportation. In addition, supporting industry clusters may include, but are not limited to advanced telecommunications, business and financial services, homeland security, multimedia and software development.
Loans will finance fixed assets only – such as lab equipment, build-out of lab space, and leasehold improvements. Loans will typically be no more than 20% of the company’s fixed-asset needs in the company’s Georgia location. However loans are not limited in amount.
Source: One Georgia Authority, 2009.
Note: The Life Science Facilities Fund and the Strategic Industries Loan Fund are two separate/distinct “sister funds” – managed by the Georgia Department of Community Affairs (GA DCA) and the OneGeorgia Authority respectively.
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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 Pro-Business Tax Incentives
Georgia continues to attract successful companies due to a pro-business environment. Please view our Georgia Business Incentives webpage or download the 2010 Georgia Business Incentives brochure for information regarding tax credits, exemptions, and other incentives available to Georgia businesses.
Georgia's Pro-Business Tax Formula
Single Factor Apportionment
In 2005, Georgia became the first state in the Southeast to adopt a “Single Factor Gross Receipts” apportionment formula. As indicated by its name, the new “Single Factor Gross Receipts” formula will treat a company’s Gross Receipts, or sales factor, as the only relevant factor in determining the portion of that company’s income that is subject to Georgia income tax.
Previously, Georgia used a three-factor apportionment formula, but for the 2008 tax year and thereafter, Georgia property and payroll will not factor into the calculation of a company’s corporate income tax. This new single sales factor apportionment formula significantly reduces the effective rate of Georgia income taxation of Georgia-based manufacturing, distribution and service companies with substantial sales to customers outside Georgia.
Example: Assume that, for the 2009 tax year, In-State Manufacturing Co., Inc. has the following total overall taxable income and gross receipt sales in Georgia as compared to total gross receipt sales.
Taxable Income: $10 million
Percent of Gross Receipts in Georgia: 13%. |
Accordingly, in 2009, only $1.3 million (.13 x $10 million) of In-State Manufacturing Co., Inc.’s income would be subject to Georgia’s 6% corporate income tax under the new Single Factor Gross Receipts formula. If the sales in Georgia compared to total sales were less than 13%, then the amount subject to Georgia’s income taxes would also be less. In addition, Georgia does not use the so-called “Throw Back Rule,” under which many states tax income from sales of goods or services to out of state customers if the customer’s state does not already tax that income.
Franchise or Corporate Net Worth TaxThe annual tax based on net worth (capital stock + retained earnings) is called a license or occupational tax in Georgia. Most states refer to the tax on net worth either as a franchise or privilege tax. Domestic corporations are taxed on 100 percent of net worth. Foreign (out-of-state) corporations are taxed only on net worth apportioned to Georgia. This tax is capped in Georgia at a maximum amount of $5,000 annually.
Georgia’s Taxation Rankings
• | The State of Georgia levies a flat rate of 6% on all corporate income. |
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• | Georgia’s unemployment insurance tax is lower than the national average as of FY 2010. |
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• | Georgia’s per capita property tax collections are lower than the national average as of FY 2007. |
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• | Georgia’s distilled beverage/liquor tax is the lowest in the Southeastern United States and the 3rd lowest in the United States as of 3rd Quarter 2009. |
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• | Georgia’s cigarette tax is the 6th lowest in the nation as of 3rd Quarter 2009. |
Source: The Tax Foundation, 2010.
Contact Us
For additional information regarding Georgia’s tax climate and business incentives, please contact Location Georgia.
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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
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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.
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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.
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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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