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Douglasville

Site Selection: Taxes and Incentives

Corporate Income Tax

  • Georgia’s 6% corporate income tax rate applies only to the portion of income that is earned in Georgia.
  • In 2005, Georgia became the first state in the Southeast to adopt a “Single Factor Gross Receipts” apportionment formula. The formula treats a company’s gross receipts or sales factor as the only relevant factor in determining the portion of that company’s income that is subject to Georgia income tax. The formula significantly reduces the effective rate of Georgia income taxation of Georgia based manufacturing, distribution and service companies with substantial sales to customers outside Georgia.
  • Tax Credits are available to offset Georgia corporate income taxes. In most cases, corporate income tax credits are limited to 50% of the taxpayer’s state income tax liability for a taxable year, but, under some circumstances, may offset up to 100% of the income tax or withholding liability. In some instances, tax credits can be stacked, resulting in tax savings greater than 50%. In most instances, unused tax credits may be carried forward 10 years. Companies are given a choice between job tax credits or investment tax credits.


Sales Tax
Georgia
4%
Local
3%
Total
7%


  • Sales and use tax exemptions are available for a wide range of industries. Douglas County exempts 100% of a manufacturer’s inventory under the local option Freeport law. Warehouse inventories are exempt from property taxes if the inventory is destined to be shipped out of state.
  • Property taxes are based on mills and a 40% assessment rate of real and personal property.


Property Tax

City of Douglasville 2009 Millage Rates

Douglas County Schools
18.3500 mills
Douglas County
7.9320 mills
City of Douglasville
3.8540 mills
Douglas County School Bond
3.0000 mills
City of Douglasville Bond
1.2860 mills
Total
34.4220 mills



Incentives

Jobs Tax Credit
Industries such as technology, manufacturing, telecom, processing companies and headquarters qualify for Georgia Job Tax Credits. In Douglasville, qualified companies that create 15 new jobs per year can claim a tax credit of $1,750 per job, per year for 5 years. These credits can be applied against 50% of the company’s annual state corporate income tax (6%) liability. Unused credits may be carried forward for 10 years.
Quality Job Tax Credit
Companies that create at least 50 jobs and pay wages at least 110% of the county average are eligible to receive a credit of $2,500-$5,000 per job per year, for up to five years. Credits may be used to offset the company’s payroll withholding once all other tax liability has been exhausted and may be carried forward ten years.
Property Tax Abatements
The City of Douglasville has some of the lowest property taxes in the Metro Atlanta Area. Property taxes can be abated for a 10 year period using a formula that takes into account job creation, hourly wages and capital investment.
Quick Start
Companies can accelerate employee training and lower expenses by utilizing the customized job-specific training and orientation of Georgia’s nationally recognized Quick Start program. The program, administered by the Technical College System of Georgia, provides flexible, customized training through a network of technical colleges, multiple satellite campuses and four associated universities. Recognized by such publications as Expansion Management and Fortune, Quick Start has offered services ranging from company orientation to advanced manufacturing technology training to productivity enhancement. From 1967 through 2008, more than 5,600 companies and more than 700,000 Georgia workers have benefited from this no-cost program.
R&D Tax Credits
10% of a company’s increased qualified research and development expense over its gross receipts may be claimed as a tax credit. Georgia taxpayers must qualify for a research credit under the IRS code to be eligible. Emerging companies can apply for the credit to offset their payroll withholding once all other tax liability has been exhausted for their first five years.
Small Business Tax Relief
Georgia now allows small businesses making capital investments of less than $410,000 to write off up to $102,000 of these expenses in the current year. For capital investments greater than $410,000 the tax write-off is reduced dollar for dollar.
Sales and Use Tax Exemption
Qualified equipment purchases are exempt from sales tax when the equipment purchased is used in the manufacturing process.
Inventory Tax Exemption
Under Georgia’s local option “Freeport” law 100% of qualified raw materials, work-in-process and finished goods are exempt from property tax.
Fast Track Permitting
The City of Douglasville has one of the most effective and quickest permitting processes in the State of Georgia. Administered by the City’s Development Services Department, the Executive Director takes an active role in processing permit requests for economic development projects. The director will assign one staff person for all city permits. This eliminates a company from having to work with multiple departments and individuals (all too common in other communities) in an effort to secure the permits necessary for a project.
Industrial Development Bonds:

Industrial Development Bonds or Industrial Revenue Bonds are tax exempt bonds that are available through the City of Douglasville Development Authority (CDA) to finance new and expanding industrial projects. Typically these bonds carry interest rates that are below market and can be used to finance the purchase of machinery, land and buildings. The requirements are 1 job per $125,000 of financing. In most cases, projects require a minimum financing of at least $750,000 in order for the benefits of these bonds to be realized.

For More Information on Incentives in Georgia please check out the State’s Business Incentives Guide (PDF)