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Friday, May 24th, 2013

Incentives and Tax

Elbert County has a variety of incentives available to new and existing industries.  First, consider the incentives offered by the State of Georgia

State of Georgia Tax Credits & Incentives 

Job Tax Credit - Because Elbert County is a Tier One county as designated by the State of Georgia, industry locating here is eligible for the maximum amount of State tax incentives. The State of Georgia offers Job Tax Credits against Georgia Income Tax to manufacturing companies locating or expanding in Georgia. The amount of credit and use of credit is determined by the Tier the State of Georgia designates each county. Being a Tier One, Elbert County companies are allowed the maximum access to Job Tax Credits.  A manufacturer creating a minimum of at least two fulltime jobs per year qualify for the tax credit.  For each year the job is maintained (up to five years) the company can claim a tax credit of $4,000 per job per year.  Unused job tax credits may be carried forward ten years.  Also since Elbert County is a Tier One, credits may be taken against 100 percent of corporate income tax liability or excess credits may be credited to Georgia payroll withholding taxes (with a limitation of $3,500 per job per year).  

Exemption of Sales and Use Tax on Energy used in Manufacturing Process—Effective January 1, 2013, Georgia will phase in over four years the exemption of sales and use tax on energy used in the manufacturing process, excluding any local education SPLOST/LOST agreements. (State legislation allows for local governments to add an excise tax on energy used in manufacturing process.)

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

There are many incentives offered by the State of Georgia with just a few mentioned here.  Click here for complete information on available State of Georgia tax incentive information.

Also click here to download the 2012 brochure as a pdf of the State of Georgia tax incentive information. 
 

Elbert County Incentives:

Inventory Tax Exemption – In Georgia business inventory is exempt from property taxes.  Also, Georgia counties may decide to exempt from property tax up to 100% of qualified raw material, work-in-process and finished goods inventory under the “Freeport” law for manufacturers.  Elbert County does exempt 100% of these qualified materials.  Distribution and warehouse inventories are exempt if the inventory is destined to be shipped out of the state.  Learn more by clicking here and go to the Exemptions link.

Land in the Elberton Industrial Park – If an industry creates a minimum of 30 jobs and qualifies in other areas, the Development Authority will offer land as an incentive.

There are also other incentives available for qualifying industries such as: tax abatement, free utility hook-ups, rough land grading, industrial revenue bond financing and State/Federal grant or loan applications.  Elbert County is able to work with the following agencies to apply for State or Federal grants and loans:  OneGeorgia Authority, Appalachian Regional Commission, USDA and the Georgia Department of Community Affairs.

Bond Program Information - Bond financing is an attractive way to finance an industrial project and the Development Authority of Elbert County, Elberton & Bowman is eager to facilitate this process to qualified projects.  It is often an attractive process because bond rates are more favorable than traditional loans.  Qualified projects with pre-arranged financing are candidates for bond financing and excellent partners for the Development Authority. 

 

ABOUT THE DEVELOPMENT AUTHORITY OF ELBERT COUNTY, ELBERTON & BOWMAN
The Development Authority of Elbert County, Elberton & Bowman is a seven-member body appointed by the City of Elberton, Elbert County and the City of Bowman. The Development Authority acts as a conduit, issuing bonds to manufacturers. The financial markets set interest rates on such bonds. Taxable and Non-Taxable bonds are available for qualified projects.  Non-Taxable Bond rates are often well below comparable rates for taxable financings because bondholders receive favorable treatment of interest earned for income tax purposes. There are rigorous guidelines to qualify for Non-Taxable bonds.
 

 

MINIMUM SIZE OF A BOND FINANCING
While the law imposes no minimum size on bond financing, the complexities involved in structuring and obtaining approvals for such financings can result in transaction costs which are higher than those for traditional taxable financings. These transaction costs may make it prohibitive to undertake financings of less than a certain size, since the advantage to the borrower of lower interest rates would be offset by the increased transaction costs. Generally, a bond financing is most efficient when the size of the financing is at least $2-$5 million. To reduce these higher transaction costs, it is often possible to combine present projects with projects to be financed within the next few years.
 

 

POLICIES & PROCEDURAL GUIDELINES
The Development Authority has established the following policies and procedural guidelines governing its consideration of industrial revenue bond applications:
 

 

1. Projects will be considered for approval on a case-by-case basis.
2. The Development Authority charges the applicant administrative fees.
3. The Development Authority pays no costs, taxes, legal fees, etc.;
    the applicant pays all expenses associated with the financing.
4. The Development Authority has legal representation and the project itself must have a    bond attorney.  All costs associated are paid by the project.
  

 

PROGRAM FEES
Fees for a bond issue to be paid by applicant are:
 * A program fee of 0 .5% of total amount of bond to the Development Authority
* All legal fees for bond attorney and Development Authority attorney
* Any other associated fees.
  

 

The Development Authority is happy to speak with any industrial partner who wishes to discuss the possibility of bond financing. Contact the Executive Director, Anna Grant Jones at 706-213-7600 or ecdev@elberton.net.  We look forward to working with your business.          

 

To find out if your industry qualifies for any of these incentives, contact the Development Authority Executive Director Anna Grant Jones at ecdev@elberton.net.

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Elbert County Designations

 

Tier One – This designation by the State of Georgia makes Elbert County most eligible for state grants and loans. Click here.

HUBZone (SBA designation) – Entire county is in HUBZone.  Click here for information.

New Market Tax Credits (Federal designation) – Entire county qualifies.  Click here for information.

Appalachian Regional Commission - Click here for information.

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Incentive Partners

 

State of Georgia, click here.


 

OneGeorgia Authority, click here.


 

Appalachian Regional Commission, click here.


 

USDA Rural Development, click here.


 

Northeast Georgia Regional Commission, click here.


 

Georgia Department of Community Affairs, click here.

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Quick Information on Taxes in Elbert County

Sales and Use Tax                                                         7% (includes 4% tax by State of Georgia) 

Elbert County's Effective Tax Rate per $1000            $11.10

Elbert County, Georgia Tax Assessors Information    click here.  

(C) Development Authority of Elbert County, Elberton and Bowman, Georgia