Georgia is making a major push to increase logistics operations. The Savannah Harbor Expansion Project (SHEP), the Georgia Logistics Center of Innovation (click here) and the 2014 Georgia Logistics Summit in March (click here) underline the state’s increased economic development focus.
Logistics includes trucking, warehousing, third party logistics (3PL), freight brokerage, light manufacturing, and related services. With all of these expansion and growth activities, logistics-related companies may have opportunities for Georgia tax credits, including:
- Job Tax Credit: for increasing headcount. You need to be careful that your client’s operations meet the Business Enterprise NAICS requirements (click here).
- Retraining Tax Credit: for training existing employees. This includes software upgrades, LEAN initiatives and related new technologies.
- Investment Tax Credit: for capital investments by manufacturing and telecommunications companies. Be careful with NAICS requirements (click here).
- Port Activity Tax Credit: for import/export through Georgia ports. This tax credit is complex – your client must own the inventory as it passes through the port and increase the quantity imported or exported to utilize this “adder” to the Job or Investment Tax Credit.
Review you clients’ past, present and planned activities. With your advice, they may be able to utilize tax credits for their logistics operations.