The Valdosta-Lowndes County Industrial Authority provides aggressive incentives to new industry and expanding industry alike. The amount of incentives are directly related to the company�s commitment including, but not limited to: capital investment, new jobs and average wage.
LOCAL
Tax Incentives
Ad valorem Tax Incentive:
A tax incentive (discount) schedule can be offered for a length of time, depending on a company�s commitment and achievement of performance standards. This local incentive could provide a substantial reduction in local tax liability allowing for reduced start-up cost in the community.
Land Incentive  The price of land, owned by the Authority, is determined by the total capital investment of the project, number of jobs created and other variables as per our investment policy and based on the price per acre for the park. Historically, the Authority has provided significant assistance in discounting land cost for companies exceeding investment and performance thresholds.
Permitting and Infrastructure Assistance
Qualifying companies may be eligible for additional permitting and infrastructure assistance.
Engineering
The Authority will provide preliminary engineering during the site selection process such as surveys and conceptual site layouts.
Financing
For projects of a certain capital investment, the Authority will serve as a conduit for the issuance of Industrial Revenue Bonds (IRB). IRB�s have a preferred method of financing used by industries locating to and expanding in Georgia. The IRB interest rates are lower than traditional financing rates. The Authority staff will assist in identifying additional low interest rate financing.
Freeport Exemption
Freeport is the general term used for the exemption of ad valorem tax on inventories as defined by Georgia law. The law offers manufacturers, distributors, wholesalers and warehouse operations an attractive inventory tax exemption on three classes of property. Originally enacted in 1976 and subsequently amended several times, Georgia's freeport law offers manufacturers, distributors, wholesalers, and warehouse operations an attractive inventory tax exemption. Lowndes County and Valdosta exempt 100% on all classes of certain business inventory from property taxation.
Three classes of property are eligible:
1. Manufacturer's raw materials and goods-in-process. The freeport law defines these as "goods in the process of manufacture or production which shall include all partly finished goods and raw materials held for direct use or consumption in the ordinary course of the taxpayer's manufacturing or production business...." The exemption applies "only to tangible personal property which is substantially modified, altered or changed in the ordinary course of the taxpayer's manufacturing, processing or production operations in this state."
2. Finished goods held by the original manufacturer. These are defined in the law as finished goods manufactured or produced within Georgia "in the ordinary course of the taxpayer's manufacturing or production business when held by the original manufacturer or producer.... The exemption...shall be for a period not exceeding 12 months from the date such property is produced or manufactured."
3. Finished goods held by distributors, wholesalers, and manufacturers destined for out-of-state shipment. The law states that such goods are those "...which, on January 1, are stored in a warehouse, dock or wharf, whether public or private, and which are destined for shipment to a final destination outside this state and inventory of finished goods which are shipped into this state...and stored for transshipment to a final destination outside this state."
The law further defines finished goods as "goods, wares, and merchandise of every character and kind, but shall not include unrecovered, unextracted, or unsevered natural resources, or raw materials, or goods in the process of manufacture or production, or the stock-in-trade of a retailer."
Elsewhere in the law, stock in trade of a retailer is defined as "finished goods held by one in the business of making sales of such goods at retail in this state...
when such goods are held or stored at a business location from which such retail sales are regularly made. Goods stored in a warehouse, dock, or wharf, including a warehouse or distribution center which is part of or adjoins a place of business from which retail sales are regularly made, shall not be considered stock in trade of a retailer to the extent that the taxpayer can establish, through a historical sales or shipment analysis, either of which utilizes information from the preceding calendar year, or other reasonable documented method, the portion or percentage of such goods which is reasonably anticipated to be shipped outside this state for retail purposes."
Thus warehoused retail inventory can qualify for freeport tax exemptions.
Raw materials, according to the statute, are "any material whether crude or processed that can be converted by manufacture, processing, or combination thereof into a new and useful product, but shall not include unrecovered, unextracted, or unsevered natural resources."
Flexibility of Administration
Georgia's law gives local governing authorities, whether counties or cities, complete control of implementation, inventory categories, and levels of exemption. A voter referendum is required to implement freeport and to establish the one, two, or three categories to be exempted. Local officials may then set the levels of inventory (from 20% to 100%) to be exempted and, if desired, defer or phase in implementation in 20% increments. (Exemption levels may also be reduced, but only following a 10-year process.)
Simplicity of Filing and Required Record-keeping
A 1992 amendment to the freeport law stipulated that the books and records documenting inventory status shall not be required as part of the application for a freeport tax exemption. The 1992 law also stipulated that historical sales or shipping records are sufficient documentation for determining inventory status, without a requirement that goods be labeled individually. Further, it is not required that the goods' final destination be known on January 1 in order to qualify for the exemption.
STATE
Tax Credits
Generally, corporate income tax credits are limited to 50 percent of the taxpayer's state income tax liability for a taxable year, but, under some circumstances, may offset up to 100 percent of the income tax or withholding liability. In some instances, tax credits can be stacked, resulting in realized tax savings greater than 50 percent. In most instances, unused tax credits may be carried forward 10 years. Taxpayers are given a choice between job tax credits or investment tax credits. For more information on specific tax credits, please visit Georgia Business Development Incentives.
Valdosta-Lowndes County is a Tier 3 county and part of a Joint Authority with Tier 1 counties. A minimum of ten jobs must be created to qualify for this program. The total credit is $1,250.00 per person. Provides for an additional $500 job tax credit per job, when claiming the credit under the county tier ranking (O.C.G.A. - 48-7-40), for a business locating within the jurisdiction of a joint authority established by two or more contiguous counties.
Tax Exemptions
Sales and Use tax exemptions are available for a wide range of industries. Many Georgia counties exempt up to 100 percent of manufacturer's inventory under the local option Freeport law. In most counties, warehouse inventories are exempt from property taxes if the inventory is destined to be shipped out of state. If you have additional questions, please contact us.
Taxation
Georgia's 6 percent corporate income tax rate applies only to the portion of income that is earned in Georgia. Currently, Georgia is transitioning to a sales only coporate income tax rate called Single Factor Apportionment. Georgia will be the first state in the Southeastern United States to make this change.
Financial Assistance
Businesses are nurtured by Georgia's vast resources and services, designed to speed and sustain economic growth and market success. In Georgia, you can transform a prospective business venture into a thriving enterprise by utilizing the state's many financial incentives.
Small business start-ups and Fortune 500 companies alike can utilize Georgia's many tax credits, designed to speed financial prosperity and enrich their workforce. Establishing or relocating your headquarters to Georgia may qualify you to receive a headquarters or new manufacturing facilities job tax credit for establishing jobs. You can also benefit from the tax credits designed to accelerate economic growth in Georgia's competitive industries and for those meeting specific business needs for manufacturing, warehousing, distribution, processing, telecommunications, tourism, and research and development firms.
Small business companies can also thrive in Georgia with the help of programs designed specifically to meet their unique needs. Your small business can improve its bottom line and become more fiscally competitive as a result of tax credits. Programs developed in conjunction with the University of Georgia's Small Business Center, Georgia Tech's Advanced Technology Development Center and the Georgia Department of Economic Development�s (GDEcD) regional offices are all available to speed your success in a regional, national and global marketplace.
Your employees will also find Georgia to be a place for personal growth and enrichment. Ongoing workforce training opportunities, supported by the Employer's Credit for Approved Employee Retraining, include a proactive retraining of employees to help them learn the new skills required in a changing competitive environment. The low-cost of living across the state, lower energy costs and valuable tax credits all translate into savings and better quality of life for you and your employees.
Economic success is a common goal for all businesses, and forward-thinking incentives, training programs and customized resources will continue the momentum of Georgia's thriving business climate. No matter the size or the industry, the state of Georgia will continue to be proactive in creating innovative programs to meet your needs for growth and competitive success.
Training Incentive
Quick Start is a program the State of Georgia has developed to design and implement a training program for new employees tailored for the incoming industry at no charge to the industry.
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