Tax Exemptions

Sales and Use Tax Exemption -
Manufacturing Machinery Sales Tax Exemption provides for an exemption from the sales and use tax for:
• Machinery used directly in the manufacture of tangible personal property
when the machinery is bought to replace or upgrade machinery in a
manufacturing plant presently existing in the state and,
• Machinery used directly in the manufacture of tanglible personal property
when the machinery is incorporated as additional machinery for the first
time into a manufacturing plant presently existing in the state.
• Machinery used directly in the remanufacture of aircraft engines, part
and components.
• Overhead materials by a government defense contractor for DOD or
NASA (phased in).

Primary Material Handling Sales Tax Exemption
provides for an exemption from the sales and use tax on purchase of primary material handling equipment which is used directly for the storage, handling, and movement of tangible personal property in a new or expanding warehouse or distribution facility when such new facility or expansion is valued at $5 million or more and does not engage in direct retail sales.

Electricity Exemption - Electricity purchased that ineracts directly with a product being manufactured is exempt from sales taxes when the total cost of the electricity makes up 50% or more of all the materials used in making the product. This exemption will be phased in over five years beginning in 1995. It allows 20-40-60-80-100 percent exemptions on the sales tax and is available for new and existing firms.

Inventory Tax Exemption - Many Georgia counties exempt from property tax up to 100 percent of qualified raw material, work-in-process and finished goods inventory under Georgia's local-option "Freeport" law. In most of these counties, distribution center and warehouse inventories are exempt if the inventory is destined to be shipped out of state.

State of Georgia

updated 12 months ago