Logistics and Trucking Tax Credits

Georgia’s growing logistics, trucking and third party logistics (3PL) companies are making a big impact on the economy due to Georgia’s location, ports, highways and airports. Fortunately, the State of Georgia offers key tax credits to assist these companies with their growth and activities. These activities could qualify for the following Georgia tax credits:

  • Job Tax Credits – If the company has locations in Opportunity Zones, Military Zones, or Tier 1/Lower 40 counties. There may be additional job tax credits if the company is involved with distribution, wholesale or manufacturing.
  • Retraining Tax Credits – For training existing employees on new technologies that include new software, upgrades, additional modules, customized systems and business process changes.

The following areas offer great potential for Retraining Tax Credits:

  1. Enterprise management systems – order entry, billing, accounts receivable, and human resources such as Microsoft Dynamics, Sage software and SAP
  2. Warehouse management systems – order picking, replenishment, inventory management, and shipping, such as JDA software, Foxfire, and Ramp Systems
  3. Transportation management systems – booking, dispatch, and load management such as McCleod software, CarrierWeb, Profit Tools and Fleetmatics
  4. Hours of Service tracking and management systems such as Peoplenet
  5. On-board vehicle tracking, messaging, and log management systemssuch as Bigroad
  6. Fleet maintenance, tractor service systems and procedures such as Squarerigger

So find out what your logistics, trucking, and 3PL clients are planning next.  Now is a great time to reach out to your existing or prospective clients in these industries to discuss tax credits!


Logistics Tax Credits

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.