Powder Springs Business Incentives
In addition to a wide array of State programs and services designed to help business thrive in today’s economy, the City of Powder Springs in cooperation with the Downtown Powder Springs Development Authority and Development Authority of Powder Springs offer a businesses incentives package to assist your company in finding a new home.
Some highlights of the incentives are no site or structural review fee, no water system development fee, business license fees can be capped at $1,000 per year for first three years, and/or building permit fees can be capped at $5,000.
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. The term tier as used in this document refers to the economic well-being of a county. Tier 4 is the most developed.
Job Tax Credit
This program provides for a statewide job tax credit for any business or headquarters of any such business engaged in manufacturing, warehousing and distribution, processing telecommunications, tourism, or research and development industries that create and maintain sufficient numbers of new full-time jobs.
Companies with headquarters in Powder Springs creating 25 or more jobs may receive up to $750 tax credit per job.
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Research and Development (R&D) Tax Credit
R & D tax credits are available to a business engaged in one of the categories to which the jobs tax credit is available (manufacturing, telecommunications, etc.) Taxpayers must have positive net income for the previous three years.
Taxpayers must qualify for a research credit under Section 41 of the 1986 IRS code to be eligible the Georgia credit. R & D tax credits can be used against 50 percent of the remaining income tax liability after all other credits have been applied in a given year.
Unused R & D tax credits may be carried forward 10 years and can be added to other tax credits.
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Headquarters Tax Credit
Companies establishing or relocating their North American or International corporate headquarters in a Georgia community are eligible to receive an income tax credit of $5,000 per job per year for five years if the new jobs pay twice the county average wage rate.
Tax credit is available to taxpayers that establish or relocate their headquarters and the headquarters of a subsidiary in Georgia, create 50 or more jobs, invest $1 million, and pay wages that exceed the county average wage rate.
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Investment Tax Credit
Investment tax credits generally range from 8% to 1% of qualified capital investment. The exact credit depends on the tier level of the county where the investment occurs. Investment tax credits are available to an existing manufacturing or telecommunications businesses that has operated a facility in Georgia for three years prior to the investment and invests $50,000 or more.
Higher level credits range from 8% to 3% for investment in recycled equipment, pollution control equipment, and for the conversion of a defense plant to manufacturing of a new product. The recycle, pollution control, and defense conversion options are available only for manufacturing plants. Taxpayers must choose either the investment tax credit or the job tax credit.
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Retraining Tax Credit
The retraining tax credit is one-half the employer’s approved direct retraining cost up to $500 per employee. The credit is available to all business categories. Before a taxpayer applies for the credits, its retraining program must be approved by the Georgia Department of Technical & Adult Education.
The retraining program must be for new equipment, a new technology, or a new operating system. The retraining tax credit can be used against 50% of taxpayer’s income tax liability in a given year to reduce or eliminate Georgia income tax liability.
Unused credits can be carried forward 10 years. These credits can be combined with other tax credits.
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Child Care Tax Credit
Child care credits range from 100 percent to 75 percent of costs. 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.
Employers who provide or sponsor child care for employees are eligible for a credit against Georgia income tax equal to 75 percent of employers’ direct costs. The credits are available to all businesses in the state. The child care program must be licensed by the state.
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Optional Investment Tax Credit
The optional investment tax credit can be taken in lieu of the investment tax credit. The credits range from 10 percent to 6 percent of qualified capital investment. This credit is available to taxpayers that qualify for investment tax credits.
The requirements are the same except for the minimum investment ranging from $5 million to $20 million. A taxpayer can use the tax credits up to the calculated amount for a given year.
The credit may be claimed up to 10 years following the year the property was first placed in service provided the property remains in service.
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Georgia Sales and Use Tax
Manufacturing production machinery is exempt from state and local sales tax, as well as machinery or components bought to upgrade or replace existing machinery; additionally, the exemption covers re-manufacturing of aircraft engines and components.
View more information about the Georgia Sales and Use Tax
Many Georgia counties exempt up to 100 percent of inventory of the qualified product of a company from property tax under Georgia’s local-option “freeport” law. Raw material, work-in process and finished goods inventory can all be exempted in these counties.
View more information about the Inventory Tax