Georgia Port Activity Tax Credit Overview

The Georgia Port Activity Tax Credit (Credit Type Code 114) is a tax credit for a company that increases shipments through a Georgia port(such as Savannah or Brunswick). The Georgia Department of Revenue (DOR) administers the program.
Key points to remember:
  • The company must hold title to the item (that is, their name must be on the bill of lading) when it is imported or exported through the port).
  • The tax credit provides a bonus on top of the Job Tax Credit or the Investment Tax Credit.
  • Right now you have up to five years of potential benefits to consider: three prior years, the current year, and plans for next year.

A situation that could qualify, for example, could be a European based carpet yarn manufacturer begins shipping its semi-finished yarn to their new plant in Dalton, GA to be finished for their customers.

In summary, the Port Activity Tax Credit can be an “icing on the cake” bonus, but it may be confusing to determine if qualifications have been met. Your clients may be planning expansions to use Georgia ports and may need your help in identifying their potential net after tax benefit of the credit. For details, click here.


2018 Georgia Job and Investment Tax Credit Tiers Available

Time-critical 2018 Job Tax Credit ranking details have been released by the Georgia Department of Community Affairs (click here).
Please note:
  • The ranking changes apply to Job Tax Credits and Investment Tax Credits.
  • Changes may adversely impact your clients’ Job Tax Credits based on their County Tier, overall ranking (Bottom 40), Less Developed Census Tract, or Military Zone.
  • No impact on Opportunity Zone tax credits. However, zones may be added, expanded or removed during the year (click here).
  • A Notice Of Intent may need to be filed to maintain your client’s tier, zone, or Less Developed Census Tract designation. The form must be filed no later than March 31, 2018 (to download form, click here).

So remember to review your clients’ plans for 2018. Job Tax Credits may be available if they plan to increase employment levels, open new or change locations in Georgia, or buy another company.  And it all depends on their location, location, location!


Georgia Manufacturer’s Investment Tax Credit Overview

The Georgia Manufacturer’s Investment Tax Credit (Credit Type Code 106) is a tax credit for a manufacturing or telecommunications company. It is based on the amount of additions to property, plant and equipment assets and the location of these assets. These assets can include costs of capitalized items and operating leases. Finally, the tax credit is earned the year after the assets are acquired (for example, plant expansion in 2016 and tax credit earned in 2017).

For this credit, the GA Department of Revenue (DOR) administers the program and the Department of Community Affairs (DCA) determines the location credit percentages. The percentages, and thus the potential credit amounts, can change each year. DCA releases the new tier rankings each December for the following year.

Key points to remember:
  • The tax credit amount is based on the costs and the county where the assets are located. For example, a $1,000,000 plant expansion in Gwinnett County (1% level) will generate a $10,000 tax credit in 2017. ($1,000,000 X 1%).
  • Right now you have five years of potential benefits to consider: 3 prior years, this year, and plans for next year.
  • Benefit $$s go to any company or pass-through equity owners that pay Georgia income taxes.
This tax credit could be a great option for your manufacturing or telecommunications clients. An expansion to a manufacturing plant could provide a lot of opportunity. For details, click here.



Georgia Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.  But of course they still want us to keep them up to date on Georgia credits and incentives!
Recently our Georgia state economic development professionals gave us some details ( Competitive Advantages site click here).
For starters — Georgia has moderate corporate and personal income tax rates.  CNBC ranked Georgia #2 in their 2017 America’s Top States for Business survey.  Several other publications rank Georgia at or near the top for business.  Pretty good.
Credits and Incentives include:


Job Tax Credit — Qualifying industries can earn as much as $4,000 per year for each new job created for up to five years. Job credit $$ amount depends on how many jobs are created and location.


Retraining Tax Credit — For retraining employees to use new equipment and technologies or learn new skills. Credit equals 50 percent of direct training expenses, up to $500 credit per full-time employee per training program, up to $1,250 per trained employee per year.
Investment Tax Credit — Companies in manufacturing or telecommunications support that have operated in Georgia for at least three years are eligible to earn investment tax credits of 1 percent to 8 percent of qualified capital investments of $50,000 or more.

Research And Development Tax Credit — Qualified research spending in Georgia may qualify for an R&D tax credit equal to a percentage of that spending increase.

Georgia offers other tax credits for Quality Jobs, Port Usage Bonus, Film, Television, and Digital Entertainment, and Musical production.
Georgia also offers Inventory Tax Exemptions as well as Sales and Use Tax Exemptions for machinery, equipment, repairs, raw materials, packaging, computer hardware and software, energy used in manufacturing, and several others.
Compared to other states, Georgia has:
  • Mid-range corporate (6%) and personal (6%) income tax rates
  • A wider range of incentives applying to a far wider range of firms
  • Pre-approval NOT required for most Georgia incentives
To summarize, Georgia is a great place to start and grow a business, whether it’s a start-up, a small to medium sized enterprise, or a Fortune 500 global leader.
So come get some of those Georgia incentives, y’all!