VALDOSTA — Industries in Lowndes County can expect greater returns on their investment into the community and the state of Georgia in 2007.

Under Georgia’s Business Expansion and Support Legislation (BEST), companies in Lowndes County engage in manufacturing, warehousing and distribution, processing, telecommunications, tourism or research and development, are eligible for tax credits that can be claimed against their state corporate income tax liability.

In 2006, a company which created 10 net new jobs was eligible for a job tax credit of $1,750 per job that could be claimed against 50 percent of their corporate income tax liability.

In 2007, the same company would be eligible for $3,000 per job and can claim the credits against 100 percent of their state corporate income tax liability, nearly doubling the incentive.

Broken down, a company creating 50 new jobs will receive a five-year tax credit equivalent to $750,000 and a five-year increase of $312,500 over and above the 2006 levels.

The state incentive are meant to stimulate job growth. In many cases, the tax credits will be large enough to more than compensate for additional machinery and equipment.

“This is good news and a nice way to begin the New Year,” said Brad Lofton, executive director of the Valdosta-Lowndes County Industrial Authority. “Eighty percent of new jobs are still created from existing industry, and the increase in state incentives in 2007 for Lowndes will mean more local incentives for employment growth and corporate profitability.”

The tax credit will mean good news for existing industries in the area interested in expansion.

“The Industrial Authority staff has met directly with several existing industries in the last six months with plans for expansion in physical assets and employment,” Lofton stated. “The change in tax credits will be an added bonus for those seeking to expand their employment base next year. The combination of 400 new jobs created by the Valdosta-Lowndes County Industrial Authority in 2006 and targeted employment expansions will continue the trend of full employment in the state’s newest MSA [metropolitan statistical area].”

The Industrial Authority strongly encourages companies creating additional employment to capitalize on the tax incentives and to communicate with Authority staff when employment expansions occur, according to Lofton.

To contact the Industrial Authority, to schedule a visit or to discuss incentives for growth, contact the office at 229-259-9972.

For information, visit www.dca.state.ga.us/.



How it works

• Employers are eligible for a baseline credit of $2,500 per job when they create 10 or more new jobs.

• An additional $500 per job credit is added for businesses locating in a community that is a member of a Joint Development Authority, such as Lowndes County.

• Another $500 per job credit is extended for existing industries that have been in the Lowndes County community for three years or more.

• The jobs must be created in Year 1 and credits claimed in Years 2 through 6. Credits claimed, however, but not used in any taxable year may be carried forward for 10 years.