Rural Georgia Jobs 11-24-25

Are Rural Georgia Counties and Cities offering tax holidays for manufacturing companies to open plants 

Rural Georgia counties and cities do not offer a single, general "tax holiday," but they provide a range of significant tax exemptions and credits, particularly for manufacturing companies, designed to encourage economic development and job creation. 

Key incentives available to manufacturers in rural areas of Georgia include:

State and Local Tax Exemptions

Sales and Use Tax Exemptions: Georgia law provides a 100% sales and use tax exemption on items that are integral and necessary to the manufacturing process. This includes: Manufacturing machinery and equipment, and related repair/replacement parts.

Raw materials and packaging materials. Energy/electricity used in manufacturing.

Property Tax Exemptions on Inventory: Georgia businesses pay no state property taxes on inventory. Most counties and municipalities have adopted a "Freeport Exemption" that can eliminate up to 100% of local property tax on raw materials, work-in-process, and finished goods inventory held for less than 12 months. 

Job and Investment Tax Credits

Job Tax Credits: The state offers substantial job tax credits, with the highest benefits in Georgia's less developed areas (Tiers 1 and 2 counties).

Businesses in the 40 least developed counties (Tier 1) can receive tax credits for creating as few as two new jobs.

These credits can be applied against up to 100% of a company's state corporate income tax liability, and in certain areas, the excess can be used to offset payroll withholding obligations.

Rural Zone Program: Designated "Rural Zones" offer specific tax credits for job creation, property investment, and building rehabilitation within historic downtown areas. Businesses can earn a job tax credit of $2,000 per new full-time job created, provided at least two jobs are established.

Investment Tax Credits: Manufacturers who have operated in Georgia for at least three years and invest a minimum of $100,000 in new or expanded facilities can receive a credit of 1% to 8% of the investment cost, depending on the county's tier designation. 

These programs, while not a temporary "holiday," provide ongoing and substantial tax relief specifically targeted at manufacturers to encourage long-term investment in rural Georgia. To explore specific incentives in a particular location, businesses can utilize the Georgia Department of Community Affairs and the Georgia Department of Economic Development resources online. 

Yes, rural counties and cities in Georgia offer a variety of tax incentives, including property tax abatements and tax credits, to attract manufacturing companies. While not explicitly called "tax holidays," these programs function similarly to reduce or eliminate tax liabilities for a period of time. The availability and value of these incentives often depend on the county's level of economic development and the number of jobs a company creates. 

Statewide and regional incentives

Job Tax Credit: Companies that create new full-time jobs may be eligible for a tax credit of $1,250 to $4,000 per job annually for five years. The credit amount depends on the economic tier of the county where the facility is located, with higher credits in more rural areas. For businesses in the 40 least-developed counties and other designated zones, this credit can be used to offset income tax or payroll withholding.

Investment Tax Credit: This credit is available to manufacturing and telecommunications companies that invest at least $100,000 in new or existing facilities. The credit is a percentage of the investment and varies based on the county's tier.

Sales and Use Tax Exemptions: Georgia provides exemptions on sales and use taxes for manufacturers on qualifying purchases, such as machinery, equipment, raw materials, and energy used in the manufacturing process.

Rural Zone Program: As of January 1, 2025, nine additional cities designated as Rural Zones offer tax credits for businesses that create jobs and invest in downtown areas. These incentives include Jobs Tax Credits, Investment Credits, and Rehabilitation Credits that can be used for job creation and property revitalization. 

Local-level incentives

Bond-Enabled Property Tax Abatement: While direct property tax abatements are banned in Georgia, local communities can offer tax relief through a bond-leaseback transaction. This allows for a negotiated "Payment-In-Lieu-Of-Taxes" (PILOT), which functions as a temporary partial tax exemption.

Freeport Law: Counties and municipalities can enact local property tax exemptions for different classes of inventory, including goods in the process of manufacturing. 

Other incentives

Quick Start Employee Training: This discretionary program offers free, customized training for new employees of qualifying companies.

Mega Project Tax Credit: For very large projects, companies that create at least 1,800 jobs and invest a minimum of $450 million can receive a significant tax credit. 

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Norb Leahy, Dunwoody GA Tea Party Leader