The Georgia Advantage
Georgia is becoming an increasingly popular spot for big businesses and manufacturers to call home. In fact, the state has been rapidly growing as a commercial hub in recent years. Companies like Amazon, Norfolk Southern, BlackRock, Microsoft, and Porsche have all jumped on the Georgia train, expanding, or relocating their operations to the Peach State. But what’s causing this consistent attraction? Well, it’s not just one factor, but rather a combination of many things. Tax incentives, a business-friendly environment, and more all play a part in making Georgia an attractive destination for businesses looking to grow and thrive.
Georgia has become a popular destination for businesses due to the enticing incentives offered by the state government. The Georgia Department of Economic Development provides a range of incentives for businesses that are looking to expand or relocate to Georgia. These incentives include tax credits, grants, and other financial assistance programs, helping companies save a lot of money. The state’s Job Tax Credit program, for instance, gives tax credits to businesses that create new jobs in the state. Manufacturers can also benefit from exemptions on sales and use taxes on certain types of equipment and machinery. These are significant cost savings that could potentially help businesses thrive.
A lesser-known benefit that the state of Georgia offers is called their “no-throwback rule.” The “no throwback rule” in Georgia refers to a tax law that prohibits businesses from applying sales taxes to goods that are shipped to other states. In other words, if a business based in Georgia sells products to customers in other states, the business cannot apply Georgia’s sales tax to those transactions. This is because the other states are responsible for collecting their own sales tax from their residents or businesses. The no throwback rule ensures that businesses in Georgia do not have to pay double sales taxes on their transactions, as they are only required to collect sales tax from customers in Georgia.
What’s more, Georgia has a favorable business environment supported by various initiatives and programs. The state is one of 27 in the United States that has a “Right to Work” law that prohibits unions from requiring employees to join, ensuring that companies can work freely without fear of being bound. The state has also made it easier for businesses to operate by streamlining permitting processes and regulatory requirements. With its range of incentives, tax credits, and exemptions, pro-business climate, and skilled workforce, it’s no surprise that so many companies are choosing Georgia as their new home.