Gainesville-Hall County, Georgia maintains a stable business tax environment and offers attractive incentives to new and existing businesses to encourage the creation of new jobs and investment.
Georgia Business Tax Incentives for Job Creation and Investment
- Georgia Opportunity Zone: Businesses located in a Georgia Opportunity Zone may qualify for the state’s maximum job tax credit of $3,500 per job when creating two or more jobs; credits may be applied against state corporate income or withholding tax. Two areas in the Gainesville-Hall County MSA are designated as a Georgia Opportunity Zone.
- Federal Opportunity Zone: Gainesville-Hall County has three census tracts designated as Federal Opportunity Zones. The Federal Opportunity Zone distinction was created by the Tax Cuts and Jobs Act to spur economic growth in low-income areas by allowing investors to temporarily defer and, ultimately, exempt federal capital gains on investments made in the Federal Opportunity Zone.
- Job Tax Credit Program: Qualified businesses in Gainesville-Hall County may qualify for this credit if they create at least 25 new jobs in a calendar year; Job Tax Credits of $1,250 each year for five years for each new full time job created and maintained. For example: $1,250 x 25 new jobs x 5 years = $156,250 in tax credits.
- Port Job Tax Credit Bonus: A $1,250 per job bonus for businesses that already qualify for the job tax credits and have a 10% increase in Georgia Port traffic over the previous year.
- Quality Job Tax Credits: Businesses qualify for this credit if they create a minimum of 50 new jobs that pay at least 110% of the county average (est. $20.25/hour); credits are per job, per year, for up to 5 years based on an increasing scale system.
- Less Developed Census Tracts (LDCT): Gainesville-Hall County has 10 census tracts designated as “Less Developed” by the State of Georgia; qualified businesses located within a designated LDCT that create at least 5 new jobs in a calendar year may qualify for increased Job Tax Credit incentives of $3,500 each year for five years for each new full time job. Credits may be applied against state corporate income or withholding tax; for example: $3,500 x 5 new jobs x 5 years = $87,500 in tax credits.
- Training Incentives: Direct investment for employee retraining for quality and productivity enhancements may qualify for credits of 50-90% of the employer’s direct cost of up to $1,200 per employee (Retraining Tax Credits & WIOA Incumbent Worker).
- Additional credits are available for equipment, capital investments, retraining employees, childcare, and R&D.
- Job, Investment, and Retraining 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.
Georgia’s Corporate Income Tax
Georgia’s Corporate Income Tax rate is 5.75%. “Single Factor Gross Receipts” apportionment formula results in a substantial and permanent reduction of state income taxes for companies that manufacture products within the state of Georgia and sell those products or services to customers in other states. This is designed to encourage manufacturing, distribution and service companies to invest or expand in Georgia.
Sales and Use Tax and Exemptions
Gainesville-Hall County and State of Georgia Sales Tax total 7%. Georgia Law provides a 100% sales and use tax exemption for qualified purchases including:
- Manufacturing Machinery & Equipment Purchase & Repair
- Raw Materials & Packaging
- Energy Used in Manufacturing
- Primary Material Handling Equipment
- Pollution Control Equipment
Effective Property Tax Rates for Gainesville-Hall County
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: 1.22% of Fair Market Value (FMV)
- Hall County (Unincorporated Areas) : 1.09% of FMV
- City of Oakwood: 1.273% of FMV
- City of Flowery Branch: 1.277% of FMV
- City of Buford: 0.953% of FMV
- City of Lula: 1.147% of FMV
- Town of Braselton: 1.347% of FMV
Updated: May 2020
Depreciation Schedule (Personal Property)
The following are the percentages the Hall County Board of Assessors allows for depreciation for personal property for the first year of business:
- GROUP 1: 87% Typical Economic Life of 5-7 years
- GROUP 2: 92% Typical Economic Life of 8-12 years
- GROUP 3: 95% Typical Economic Life of 13 years or more
- GROUP 4: 67% Typical Economic Life of 1-4 years
Multi-Shift – Accelerated Depreciation
Companies operating 85% of total available time over a 12-month period may be eligible for accelerated depreciation on equipment.
Inventory Tax Exemption (Freeport)
100% Freeport Tax Exemption (ad valorem) with annual filing for the following classes of inventory:
- Raw materials and goods in process of manufacture
- Finished goods held by the manufacturer
- Finished goods destined for shipment out-of-state.
Industrial Revenue Bond (IRB) Financing
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 $20 million.
If you have questions about Georgia business tax specifics, contact Tim Evans for more information: (770) 532-6206 or email. Additional assistance is available for qualified businesses.