Sales Tax Exemptions
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 the re-manufacturing of aircraft engines and components.
The concept of exempting production machinery has been extended to warehouses and distribution centers; their primary material handling equipment is exempt from sales tax if the company invests $5 million or more in a new or expanded facility. Computer equipment that is purchased or leased for use at the facilities of a high technology company is exempt when the total amount of the purchase (or lease) value exceeds $15 million.
Machinery, equipment, and materials purchased and used in a clean room of Class 100 or less are exempt. Electricity interacting directly with a manufactured product is exempt if the total cost of the electricity is more than half the cost of all materials used (including electricity) in making the product.
Small Business Fast Growth Tax Credit
Georgia income tax credits are available to a small business in Augusta-Richmond County having Georgia net taxable income growth of 20% or more each year for three consecutive years. The credit in year three is the difference in the net taxable income of year three and year two. Eligible companies include the same categories that can receive the job tax credit on page one except for retail businesses.
The small business credit can be used against 50% of the remaining Georgia income tax liability after all other credits have been applied in a given year. There is no carry forward provision. This process can continue until the taxpayer's Georgia income tax liability exceeds $1.5 million, at which time the taxpayer would no longer be considered a small business. This credit may be combined with other tax credits.