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Incentives & Financing


The Dublin-Laurens County Development Authority is the primary conduit for a number of business incentives offered to qualified industrial prospects. These flexible incentives allow a relocating or expanding company to offset certain transition costs and risks associated with investing and creating jobs in Dublin-Laurens County.  Please see the list of incentives below, and contact our office if you would like to explore these opportunities in detail.  Incentives offered through the state of Georgia and through the local community require signed performance agreements requiring companies to meet certain job and investment expectations.    

Georgia Taxes Quality Jobs Tax Credit
Tax Exemptions Hiring, Training, & Education
Local Incentives  

 

Incentives: Georgia Taxes

Single Factor Apportionment

In 2005, Georgia became the first state in the Southeast to adopt a "Single Factor Gross Receipts" apportionment formula. This apportionment formula treats a company's gross receipts, or sales, in Georgia, as the only relevant factor in determining the portion of that company's income subject to Georgia's six percent corporate income tax. Georgia is one of only 13 states currently using Single Factor Apportionment. Most states use a traditional apportionment formula in which a company's instate property and payroll factor into the calculation of a company's corporate income tax. Single Factor Apportionment significantly reduces the effective rate of Georgia income taxation of companies with substantial sales to customers outside Georgia. In addition, Georgia does not use the so-called "Throw Back Rule," which many states use to tax income from sales of goods or services to out-of-state customers if the customer's state does not already have that tax income. 

Corporate Tax Credits

Georgia offers a range of corporate tax credits that enable companies to minimize or completely eliminate state corporate income taxes, which, at six percent, are already among the lowest in the nation.

Job Tax Credit

Companies and their headquarters that are engaged in strategic industries such as manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism, and research and development may qualify for Georgia's Job Tax Credit Program. Depending on the community's tier, companies must create between five and 25 net new full-time jobs in the first year to qualify. Credits may also be accrued for additional jobs created in years 2-5. Jobs created outside of year five may not be claimed unless a new threshold for job creation (year 1) is met. Qualified companies can claim tax credit with a value of $750-$3,500 per job, per year, beginning with the first taxable year in which the new job is created and for the following for years the job is maintained.

An additional $500 credit is offered in counties that participate in a multi-county Join Development Authority (JDA). Increased tax credits, equal to Tier 1 credits, are also allowed for companies that create jobs in Less Developed  Census Tracts (LDCT), Opportunity Zones (OZ) or Military Zones, as well as Georgia's 40 least developed counties offer job tax credits to businesses of any nature, including retail businesses.

Credits may be taken against 100 percent of state corporate income tax liability in Tier 1 and 2 counties, or against 50 percent of state corporates income tax liability in Tier 3 and 4 counties. Credits that are claimed but not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which qualified jobs were established. Additionally, the Tier 1 counties, excess credits may be credited to Georgia payroll withholding taxes (with a limitation of $3,500 per job, per year).

Port Tax Credit Bonus

The Port Tax Credit Bonus is available to taxpayers who increase imports or exports through a Georgia port by 10 percent over the previous or base year. Base year port traffic must be at least 75 net tons, five containers, or 10 TEUs (twenty-foot equivalent units); if not, the percentage increase in port traffic will be calculated using 75 net tons, five containers, or 10 TEUs as the base. 

The port tax credit bonus can be used with either the Job or the Investment Tax Credit program, provided that the company meets the requirements for one of those programs. Port Tax Credits may be used to offset up to 50 percent of the company's corporate income tax liability. Unused credits may be carried forward for 10 years, provided that the increase in port traffic remains above the minimum level and that the company continues to meet the job or investment tax credit requirements. Note that the Port Tax Credit Bonus cannot be utilized with the Quality Jobs Tax Credit and can only be used in Opportunity Zones, Military Zones and Less Developed Census Tracts in limited cases by existing large distribution centers.
 
Port Tax Credit Bones for JOB Tax Credits - This “port bonus” is an additional $1,250 per job credit for tax payers with qualified increases in shipments through a Georgia port. The $1,250 is added to the Job Tax Credit.
 

Quality Jobs Tax Credit

Companies that create at least 50 jobs in a 12-month period where each job pays wages at least 110 percent of the county average are eligible to receive a tax credit of $2,500-$5,000 per job, per year, for up to five years. New quality jobs created within seven years can qualify for the credit. Credits may be used to offset the company’s payroll withholding once all other tax liability has been exhausted, and may be carried forward for 10 years.
New jobs that do not meet the requirements for the Quality Jobs Tax credit may count towards the Jobs Tax Credit Program if they meet the eligibility requirements for that program separately. For Current Average County Wages, visit http://explorer.dol.state.ga.us/mis/Current/ewcurrent.pdf

Research & Development – Georgia offers an incentive to new and existing business entities performing qualified research and development in Georgia. Companies claim a 10 percent tax credit of increased RD expenses subject to a base amount calculation. The base amount = Current Year Georgia Gross Receipts x (the average of the ratios of the company’s qualified Georgia research expenses to Georgia gross receipts for the preceding three taxable years) OR 0.300, whichever is less. For new Georgia companies or for companies with no prior R&D expenditures in Georgia, the base amount is 30 percent of the current year’s Georgia gross receipts. The credit is determined by taking the current year’s qualified R&D expenses, subtracting the base amount, and multiplying by 10 percent. The R&D credit is applied to 50 percent of the company’s net Georgia income tax liability after all other credits have been applied. In the first five years of a newly formed business entity in Georgia, any excess R&D credit can then be applied to the company’s state payroll withholding. Any unused credits can be carried forward for up to 10 years from the close of the taxable year in which the qualified research expenses were made.

Mega Project Tax Credit

Companies that employ at least 1,800 new new employees, and either invest a minimum of $450 million or have a minimum annual payroll of $150 million may claim a $5,250 per job, per year tax credit for the first five years of each net new job position. Credits are first applied to state corporate income tax, with excess credits eligible for use against payroll withholding. Credits may be carried forward for 10 years.

Child Care Tax Credits

Employers who purchase or build qualified child care facilities are eligible to receive Georgia income tax credits equal to 100 percent of the cost of construction. The credit for the cost of construction is spread over 10 years [ten percent each year]. Unused child care credits from the purchase or construction of a child care facility can be carried forward three years. The child care facility must be licensed by the state. Employers who provide or sponsor child care for employees are eligible for a credit against Georgia income tax equal to 75 percent of the employer’s direct costs. Credits that are related to the operating cost of the facility may be carried forward five years. All child care credits can be used against 50 percent of the taxpayer’s income tax liability in a given year.

Work Opportunity Tax Credit Program (WOTC)

The Georgia Department of Labor (GDOL) coordinates the federal Work Opportunity Tax Credit Program. The WOTC program is a federal tax credit incentive that the U.S. Congress provides to private-sector businesses for hiring individuals from nine target groups who have consistently faced significant barriers to employment. Among others, target groups include certain TANF (Temporary Assistance for Needy Families) and food stamp recipients, and certain residents of an Empowerment Zone (EZ) or Rural Renewal County (RRC). Participating companies are compensated by being able to reduce their federal income tax liability with a tax credit between $1,200 to $9,000 per qualified employee, depending on the target group. The most frequently certified WOTC is $2,400 for each adult new hire. An employer must request and receive certification for the Georgia Department of Labor that the new hire is a member of at least one of the nine WOTC target groups before the employer can claim the WOTC on its federal income tax return. www.doleta.gov/business/incentives/opptax/
 
Tax Exemptions

Sales and Use Tax Exemption

Qualified equipment purchases or leases are exempt from sales tax when the equipment purchased is used in the manufacturing process. Under certain conditions, primary material handling equipment (in warehouses and distribution centers), computer equipment and Class 100 (or less) clean room machinery, equipment and materials can also be exempted.
 

Inventory Tax Exemption

Effective January 1, 2011, business inventory is exempt from state property taxes (0.25 mills). Many Georgia counties also exempt from property tax up to 100 percent of qualified raw material, work-in-process and finished goods inventory under Georgia’s local-option “Freeport” law. In most of these counties, distribution center and warehouse inventories are exempt if the inventory is destined to be shipped out of state.
 

Foreign-Trade Zone (FTZ)

Georgia is home to multiple FTZ sites and is a recognized leader in working with companies to facilitate use of the program. Importing and exporting are central to many businesses’ success, and the program streamline those activities and lowers costs. The FTZ program allows qualified companies to defer, decrease, or eliminate duties on materials imported from overseas that are used in products assembled in Georgia. Whether your company’s needs are best served by locating in one of Georgia’s industrial parks with FTZ designation, or applying for FTZ designation of an individual facility located elsewhere in Georgia, we can connect you with the right contacts to assist you with the Process Tax Exemptions

Sales and Use Tax Exemption

Qualified equipment purchases or leases are exempt from sales tax when the equipment purchased is used in the manufacturing process. Under certain conditions, primary material handling equipment (in warehouses and distribution centers), computer equipment and Class 100 (or less) clean room machinery, equipment and materials can also be exempted.


Inventory Tax Exemption

Effective January 1, 2011, business inventory is exempt from state property taxes (0.25 mills). Many Georgia counties also exempt from property tax up to 100 percent of qualified raw material, work-in-process and finsihed goods inventory under Georgia’s local-option “Freeport” law. In most of these counties, distribution fenter and warehouse inventories are exempt if the inventory is destined to be shipped out of state.
 

Foreign-Trade Zone (FTZ)

Georgia is home to multipole FTZ sites and is a recognized leader in working with companies to facilitate use of the program. Importing and exporting are central to many businesses’ success, and thr program streamline those activities and lowers costs. The FTZ program allows qualified companies to defer, decrease, or eliminate duties on materials inported from overseas that are used in products assembled in Georgia. Whether your company’s needs are best served by locating in one of Georgia’s industrial parks with FTZ designation, or applying for FTZ designation of an individual facility located elsewhere in Georgia, we can connect you with the right contacts to assist you with the process.


Hiring, Training, & Education

Hiring Assistance – Georgia’s Department of Labor (GDOL) assists companies in recruitment by posting job notices, collecting and screening applications and/or resumes, providing interview space, scheduling interviews and hosting job fairs. GDOL will work with private employment agencies that list jobs with the state.

Quick Start Employee Training – Georgia’s nationally-ranked employee training program, Quick Start, provides customized training for new employees in skill-based jobs at no cost to qualifying companies. The training program is given to the company for its future use. Quick Start provides training space, instructors and all needed materials related to the program, potentially saving companies millions of dollars in training costs. GeorgiaQuickStart.org

Georgia Work Ready – Georia Work Ready is available for companies meeting minimum hiring requirements and is easy to access through the state’s network of technical colleges. Georgia companies can implement Work Ready two ways – through job profiling and Work Ready Certificates. Work Ready job profiles identify the job tasks and skill levels necessary to be successful in any job. Companies match those profiles to employees’ Work Ready Certificates, which measure core skills, to ensure the right person is placed in the right job. gaworkready.org

Retraining Tax Credit – A company’s direct investment in training can be claimed as a tax credit. The credit is available to all Georgia businesses that file a Georgia income tax return. 50 percent of the employer’s direct cost, up to $500 per full-time employee, per approved training program, may be claimed as a credit. The total amount of credit cannot exceed $1,250 per employee per year. Training programs must be approved by the Technical College System of Georgia. The retraining program must be for quality and productivity enhancements and certain software technologies. This tax credit can be used to offset up to 50 percent of a company’s state corporate income tax liability. Unused credits can be carried forward 10 years. These credits can be combined with other tax credits.

HOPE Scholarship and Grant – The HOPE Scholarship provides tuition assistance at one of Georgia’s 35 public colleges or universities for graduating Georgia high school seniors with a B or better average. The HOPE Grant provides an opportunity for all Georgians to receive degree or certificate programs at a low cost through Georgia’s technical colleges and schools. These programs can be advantageous to relocating families with children, and for a company training employees through local technical colleges.

Georgia’s Intellectual Capital Partnership Program (ICAPP) is the University System of Georgia’s economic development program. It was created by the Board of Regents of the University System of Georgia in 1995. ICAPP connects the intellectual resources of Georgia’s 35 public colleges and universities to the state’s business community in innovative ways. ICAPP staff and a team of economic development leaders from each campus help Georgia businesses tap into the University System of Georgia for college-educated employees, access to the latest research, and business and operations advice. icapp.org

Local Incentives

Property Tax Abatement – Manufacturers, distributors and certain other qualifying businesses may be offered exemptions from local property taxes for a negotiated time period based on the company’s commitment to the community in the form of new jobs and capital investment.  Development Authority staff has extensive experience with assisting companies in structuring this proposed tax incentive to comply with local, state and federal law.    

Land – Qualifying companies may be eligible to receive donations of land located in established industrial parks based on proposed jobs and investment projections.

Site Work – Qualifying companies generating a significant economic impact on the community may be eligible for assistance with the preparation of a building pad.       

Industrial Revenue Bonds – For qualifying projects and companies that obtain external letters of credit for collateral, the Dublin-Laurens County Development Authority can assist by serving as a conduit for low-interest Industrial Revenue Bonds (IRBs).

Laurens County Closing Fund (LCCF) – Qualifying projects are eligible for grant funds that may be used for eligible expenditures including real property improvements and other expenditures allowed under Georgia law.

Expedited Permitting – Certain projects require commitment from the local leadership to expedite permitting and plan review.  To the extent allowed by local and state law, Dublin-Laurens County will commit to assist with expedited permitting as needed.

 

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Brad
Lofton
President
478-272-3118
Beatriz
Lleras
Marketing & Public Relations Coordinator
478-272-3118
Beth
Crumpton
Operations Manager
478-272-3118