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Business Taxes and Incentives

Gainesville-Hall County maintains a stable tax environment and offers attractive incentives to new and existing businesses to encourage the creation of new jobs and investment. Additional assistance is available for qualified businesses. For more information contact Tim Evans at (770)532-6206 or Email Tim.

Georgia's corporate income tax rate of 6% has remained unchanged since 1969. For all tax years beginning on or after January 1, 2008, manufacturing, sales and service companies doing business in Georgia are to use a "Single Factor Gross Receipts" apportionment formula. This new method of apportionment results in a substantial reduction of Georgia income taxes for companies that manufacture products within the state of Georgia, sell goods from a Georgia base, or render services from a Georgia base, but sell those products or services to customers in other states. This change was designed to encourage manufacturing, distribution and service companies to invest or expand in Georgia.

Job Tax Credit Program
Georgia's Business Expansion Support (BEST) Act provides qualified businesses in Gainesville-Hall County job tax credits of $1,250 each year for five years for each new full time job created. Companies can qualify for this credit if they create 25 new jobs in a year and are engaged in manufacturing, processing, distribution or headquarters activities.

Example: $1,250 x 25 new jobs x 5 years=$156,250 in tax credits

Port Job Tax Credit Program
Georgia's Port Job Tax Credit Bonus is a $1,250 per job bonus for businesses that already qualify for the regular job tax credit and have an increase in export shipments through a Georgia Port.

Example: $2,500 x 25 new jobs x 5 years = $312,500 in tax credits

Job Tax Credits and the Port Job Tax Bonus Credits earned in Hall County may be used to offset up to 50% of a company's Georgia corporate income tax liability in any taxable year following the year in which the credits are earned. Credits not used may be carried forward and applied for up to 10 years.

Strategic Industries Tax Credit
In 2005, the Georgia Legislature approved a Strategic Industries Tax Credit that allows for a $500 per job tax credit bonus for each new full-time position created by existing business enterprises that have been headquartered in the state for three or more years.

Additional credits are available for equipment, capital investments, retraining employees, childcare, R&D, and small business growth companies.

See Georgia Business Development Incentives.
Incentives Brochure (PDF)

The following rates apply to all real and personal property owned by individuals and corporations and are specific to the taxing jurisdiction.

City of Gainesville: 1.37% of Fair Market Value (FMV)

Hall County (Unincorporated areas) : 0.98% of FMV

City of Oakwood: 1.08% of FMV

City of Flowery Branch: 1.10% of FMV

The depreciation of machinery will depend on the group that the taxpayer listed the equipment under when filing a claim with the Hall County Personal Property Assessors. For tax year 2008, the following were the percentages used for depreciation on each class for the first year of business:

GROUP 1: 0.87 Typical Economic Life of 5-7 years
GROUP 2: 0.92 Typical Economic Life of 8-12 years
GROUP 3: 0.95 Typical Economic Life of 13 years or more
GROUP 4: 0.67 Typical Economic Life of 1-4 years

Accelerated Depreciation: Companies operating 24 hours per day, 7 days per week, may be eligible for accelerated depreciation on equipment.

All Gainesville-Hall County taxing entities allow a 100% Freeport tax exemption (ad valorem) for the following classes of inventory:

Raw materials and goods in process of manufacture
Finished goods produced in Georgia
Finished goods destined for shipment out-of-state.

Tax exempt bond financing is available for companies seeking to finance the purchase of land, buildings and equipment for eligible manufacturing projects. Rates for tax-exempt bonds are market-based and established on the credit and strength of the individual company and projects. Tax-exempt IRB financing can be used for projects with capital investment between $1 million and $10 million.

Gainesville-Hall County and State of Georgia Sales Tax totals 7%. Georgia Law provides a 100% sales and use tax exemption for qualified purchases including:

raw materials
goods intended for resale
qualified machinery used directly in the manufacture of tangible personal property
material handling equipment used in qualified distribution businesses.

For Economic Development information:
Tim Evans (770) 532-6206 or email Tim