BUSINESS & TAX INCENTIVES
Lee County maintains a stable tax environment and offers attractive incentives to new and existing businesses to encourage the creation of new jobs and investment. Additional assistance is available for qualified businesses.
For Economic Development information contact Lisa Davis at 229-759-2422 or email
ldavis@lee.ga.us.
GEORGIA'S CORPORATE INCOME TAX
Georgia's corporate income tax rate of 6% has remained unchanged since 1969. For all tax years beginning on or after January 1, 2008, manufacturing, sales and service companies doing business in Georgia are to use a "Single Factor Gross Receipts" apportionment formula. This new method of apportionment results in a substantial reduction of Georgia income taxes for companies that manufacture products within the state of Georgia, sell goods from a Georgia base, or render services from a Georgia base, but sell those products or services to customers in other states. This change was designed to encourage manufacturing, distribution and service companies to invest or expand in Georgia.
INCENTIVES FOR JOB CREATION AND INVESTMENT
Tax Credits
The Georgia business tax environment benefits companies in so many ways. Our corporate tax rate has been kept low for 50 years, and your tax obligation is based on one factor: your sales inside Georgia. When you learn about our job tax credits and other incentives, you’ll know why so many view Georgia as good for business.
To get help with specific tax questions for a business in Georgia, contact the Georgia Department of Revenue.
Job Tax Credit Program
Provides for a statewide job tax credit for any business or headquarters of any such business engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, research and development industries or services for the elderly and persons with disabilities 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.
Counties and certain census tracts in the state are ranked and placed in economic tiers using the following factors:
1. highest unemployment rate;
2. lowest per capita income; and
3. highest percentage of residents whose incomes are below the poverty level.
To determine the designation area for an address location, go to the Interactive Map of Potential Opportunity Zone areas for 2020, including designated LDCT and Military Zones. Click on the layers for the LDCT and Military Zones to have these layers shown on the map.
Port Job Tax Credit Program
Georgia's Port Job Tax Credit Bonus is a $1,250 per job bonus for businesses that already qualify for the regular job tax credit and have an increase in shipments into or out of a Georgia Port.
Example: $3,000 x 20 new jobs x 5 years = $300,000 in tax credits
Job Tax Credits and the Port Job Tax Bonus Creditsearned in Lee County may be used to offset up to 50% of a company's Georgia corporate income tax liability in any taxable year following the year in which the credits are earned. Credits not used may be carried forward and applied for up to 10 years.
Strategic Industries Tax Credit
In 2005, the Georgia Legislature approved a Strategic Industries Tax Credit that allows for a $500 per job tax credit bonus for each new full-time position created by existing business enterprises that have been headquartered in the state for three or more years.
Additional credits are available for equipment, capital investments, retraining employees, childcare, R&D, and small business growth companies.
Inventory Tax Exemption (Freeport)
All Lee County taxing entities allow a 100% Freeport tax exemption (ad valorem) for the following classes of inventory:
- Raw materials and goods in process of manufacture
- Finished goods produced in Georgia
- Finished goods destined for shipment out-of-state.
Industrial Revenue Bond (IRB) Financing
Tax exempt bond financing is available for companies seeking to finance the purchase of land, buildings and equipment for eligible manufacturing projects. Rates for tax-exempt bonds are market-based and established on the credit and strength of the individual company and projects. Tax-exempt IRB financing can be used for projects with capital investment between $1 million and $10 million.
Sales and Use Tax and Exemptions
Lee County and State of Georgia Sales Tax totals 7%. Georgia Law provides a 100% sales and use tax exemption for qualified purchases including:
- raw materials
- goods intended for resale
- qualified machinery used directly in the manufacture of tangible personal property
- material handling equipment used in qualified distribution businesses.
Additional information on the Job Tax Credit Program, including regulations and forms, may be found on DCA’s Job Tax Credit web page at: http://www.dca.ga.gov/economic/TaxCredits/programs/taxcredit.asp.
