Incentives

Click on an incentive heading for a drop down description with more information.

RURAL ZONE TAX CREDITS

City of Wrightsville has unique Rural Zone Tax Credits for job creation, investment, and rehabilitation costs of properties in downtown Wrightsville. 

Rural Zone tax credits can even apply in a scenario where a corporate office is housed in the Wrightsville Rural Zone, but auxiliary space (think manufacturer, warehouse, etc.) is outside the zone. The corporate office would be able to take the tax credits on the jobs created within the designated Rural Zone as well as investments and rehabilitation costs. The auxiliary space would not be able to take the Rural Zone Tax Credits, however, the auxiliary space can take the traditional Tier 1 Job Tax Credits if all requirements of that program are met.

AVAILABLE RURAL ZONE TAX CREDITS

The Job Tax Credit is equivalent to $2,000 per year for each new full-time equivalent job for up to 5 years. 

The Investment Credit is equivalent to 25% of the purchase price of a property within the designated Rural Zone. 

The Rehabilitation Credit is equivalent to 30% of the qualified rehabilitation costs of a building located within a designated Rural Zone. 

JOB TAX CREDITS

JOHNSON COUNTY MAINTAINS THE HIGHEST AVAILABLE TIER FOR STATE JOB TAX CREDITS

*Includes $500 bonus for Emanuel-Johnson Joint Development Authority (JDA).

New and expanding companies may earn Job Tax Credits (JTC) for creating new jobs in Georgia. These credits may eliminate a company’s corporate income tax liability, and in certain areas may also reduce the company’s payroll withholding obligations.

Each year, all 159 Georgia counties are assigned to one of four tiers based on the unemployment rate, per capita income, and poverty rate. A county’s tier level determines the value of the tax credits earned, the allowed uses of the credits, and the minimum number of net new full-time jobs that must be created during a single tax year to qualify. The credit value is earned for the first five years of the job’s existence as long as the job is maintained. 

QUALIFYING FOR JOB TAX CREDITS

To qualify, the Georgia facility must be engaged in, or the headquarters of, a specified industry including:

• Manufacturing

• Warehousing, Distribution and Logistics

• Software Development

• FinTech

• Data Centers

• Contact Centers

• Telecommunications

• Research and Development Facilities

To qualify, each job must have a minimum 35-hour work week, offer health insurance benefits consistent with what is offered to existing employees, and pay more than the average wage of the county with the lowest average wage in the state ($602/week as of June 2022). Once a project qualifies, it opens a five-year window in which each job created can earn a job tax credit each year for five years as long as the job is maintained. If the project creates net new jobs above the minimum threshold, a new five-year window opens. 

For current average county wages, view the annual Georgia Employment and Wages report on the Publications page of the Georgia Labor Market.

Job Tax Credits are subject to program requirements as outlined in O.C.G.A. § 48-7-40 and rules published by the Georgia Department of Community Affairs in Chapter 110-9.1 and the Georgia Department of Revenue in Regulation 560-7-8-.36.

QUALITY JOB TAX CREDITS

Companies may receive Quality Jobs Tax Credits (QJTC) if they create and maintain net new jobs that pay at least 110% of the county’s average wage. The QJTC credit value is determined by comparing the average for all qualifying jobs to the credit value thresholds (see chart at right). All eligible jobs created in a tax year earn the same QJTC value.  Once a project qualifies it opens a seven-year window in which each qualifying job created can earn a QJTC each year for five years as long as the job is maintained. 

Quality Jobs Tax Credits must first be applied against 100% of the state corporate income tax liability; then any excess may be applied to the company’s state payroll withholding. Claimed but unused credits may be carried forward for 10 years.

A qualifying job can earn QJTCs or JTCs, but not both. However, new jobs that do not meet the requirements for the QJTC may be claimed for JTC if they meet JTC eligibility requirements separately. For current average county wages, view the annual Georgia Employment and Wages report on the Publications page of the Georgia Labor Market.

Quality Jobs Tax Credits are subject to requirements outlined in O.C.G.A. § 48-7-40.17 and rules published by the Georgia Department of Revenue in regulation 560-7-8-.51.

EXEMPTIONS FOR MANUFACTURERS

SALES AND USE TAX EXEMPTION

Georgia exempts the 6%-9% sales and use tax for a wide range of expenditures that manufacturing facilities must make for their operations.

Manufacturing Machinery and Equipment Manufacturing machinery and equipment that is integral and necessary to the manufacturing process and used in a manufacturing facility is exempt from sales tax. Qualifying machinery or equipment must be purchased for a new manufacturing facility, as replacement machinery in an existing manufacturing facility, or for the upgrade or expansion of an existing manufacturing facility. [Ga. Comp. R. & Regs. 560-12-2-.62]

Repair to Industrial Machinery The sale or use of repair or replacement parts, machinery clothing, molds, dies, waxes or tooling for machinery which is necessary and integral to the manufacture of tangible personal property in a presently existing manufacturing plant is exempt from taxation. [Ga. Comp. R. & Regs. 560-12-2-.62]

Raw Materials and Packaging Materials used for further processing, manufacture, or conversion into components of a finished product; materials coated upon or impregnated into a product being manufactured for sale; and non-reusable materials used to package products for sale or shipment may be purchased tax-free. [Ga. Comp. R. & Regs. 560-12-2-.62]

Energy Used in Manufacturing The sale, use, storage, or consumption of energy which is necessary and integral to the manufacture of tangible personal property at a manufacturing plant shall be exempt from all sales and use taxation except for the sales and use tax for educational purposes (typically 1.0%). This includes energy used directly or indirectly in a manufacturing facility. [Ga. Comp. R. & Regs. 560-12-2-.64]

Primary Material Handling Equipment For manufacturers who have a separate portion of their facility designated exclusively for the material handling function, purchases of the machinery and equipment used to handle, move, or store tangible personal property is exempt from sales and use taxes where the total purchase or expansion is valued at $5 million or more. [Ga. Comp. R. & Regs. 560-12-2-.103]

Pollution Control Equipment Machinery & equipment used for the primary purpose of reducing or eliminating air and water pollution is exempt. [Ga. Comp. R. & Regs. 560-12-2-.62]

Clean Room Equipment The sale of machinery, equipment, and materials incorporated into and used in the construction or operation of a clean room of Class 100 or less is exempt from sales tax, if the room is used to produce tangible personal property. The exemption does not include the building of any permanent, nonremovable component of the building that houses the clean room. [O.C.G.A. § 48-8-3(69)]


INVENTORY TAX EXEMPTION

Georgia has no state property tax on inventory or any other real or personal property. 

Johnson County has enacted a local property tax exemption for four different classes of inventory at 100% of the value of inventory of goods in the process of being manufactured or produced including raw materials and partly finished goods.

EXEMPTIONS FOR DISTRIBUTION CENTERS

SALES AND USE TAX EXEMPTION

Georgia exempts the 6%-9% sales and use tax for the following equipment.

Primary Material Handling Equipment Distribution or warehouse facilities that invest $5 million or more in the purchase or expansion of a facility are eligible for sales and use tax exemptions on qualifying purchases. Qualifying equipment is defined as machinery and equipment used to handle, move, or store tangible personal property. The distribution or warehouse facility may not have retail sales equal to or greater than 15 percent of the facility’s total revenues. [Ga. Comp. R. & Regs. 560-12-2-.103]


INVENTORY TAX EXEMPTION

Georgia has no state property tax on inventory or any other real or personal property. 

Click for more information on the State of Georgia's Business Incentives