In 2014, Georgia was named the nation's
most competitive state for business by Site Selection, the
leading corporate magazine covering real estate strategy and
economic development. This top rank is achieved after an
official evaluation of the state's economic activity and growth.
For the last 4 years Georgia has remained in the top 10 of this
list before climbing to the top spot this year.
The Research & Development Tax
Credit
Enacted in 1981, the federal Research and
Development (R&D) Tax Credit allows a credit of up to 13
percent of eligible spending for new and improved products and
processes. Qualified research must meet the following four
criteria:
New or improved products, processes,
or software
Technological in nature
Elimination of uncertainty
Process of experimentation
Eligible costs include employee wages, cost of supplies, cost of
testing, contract research expenses, and costs associated with
developing a patent. On January 2, 2013, President Obama signed
the bill extending the R&D Tax Credit for 2012 and 2013 tax
years. A similar extension is expected for 2014.
Georgia R&D Tax Credit
Research and Development (R&D) tax
credits are a valuable benefit for companies developing new
products and services in Georgia. R&D tax credits are
available to any company that increases its qualified research
spending. Brand new companies, existing companies embarking on
R&D for the first time and established companies expanding
their R&D budget all are eligible for R&D tax credits.
The tax credit earned is a portion of the increase in R&D
spending. The credit can be used to offset up to 50 percent of
net Georgia income tax liability, after all other credits have
been applied. Any unused R&D tax credits can be carried
forward for up to 10 years. In addition, excess R&D tax
credits can be used against state payroll withholding.
IT and Manufacturing
Georgia has more than 14,900 tech
companies state-wide making it the 5th largest IT employment
cluster in the United States. AT&T built a foundry in
Atlanta to test and develop new products and networks. Like many
of the other companies that come to Georgia to do business, they
realize the resources that Georgia has to offer.
Polymer Aging Concepts is a Georgia based company that designs
and creates sensors which attach to polymer components of
anything and everything, particularly those used in commercial
and energy manufacturing. These sensors alert the company when
polymer components are becoming deficient and are no longer
capable of performing their task efficiently. The new sensors
will help save time and money by reducing manufacturing shutdown
time which is spent looking for and then fixing the problem.
Energy
Clean renewable energy is the way of the
future and becoming ever more so the way of the present. Georgia
is leading the way in the charge towards solar energy
exploration with the help of a company called SolarMax. SolarMax
produces and designs some of the best solar energy inverters in
the world. Originally a Swiss company, SolarMax decided to move
to Georgia for its Center of Innovation, access to Georgia
Tech's resources, the Savannah Port, and the Atlanta Airport.
Applying Swiss quality to their innovations, SolarMax
continually produces a reliable and efficient product that is
built to last. To ensure the safety of consumers, SolarMax
introduced Arc Fault Protection and Interruption which is
designed for certain products where voltages can reach 1,000 +
volts. Arc Fault Protection and Interruption is used so that
Direct Current (Arc Fault) flashes do not occur and risk causing
fire or serious harm to the user when checking the inverter. As
soon as an Arc Fault is detected by the inverter all power
supply is cut, ensuring the safety of the users and their homes
or business. This technology is critical since some novice solar
installers use home grade electrical connectors for commercial
installations that produce a lot of electrical current. Without
the technology, this formula often results in a catastrophic
electrical meltdown.
Infrastructure
Logistically, Georgia has the largest
rail system in the Southeast, the tenth largest air cargo hub in
the North America, the largest single container cargo terminal
in North America, the fourth largest cargo port in North
America, the busiest passenger airport in America, and finally,
an elaborate road system that consists of 1,244 miles of
interstate highway.
The Home Depot has been working with Georgia's economic
development department in order to grow and create a more
efficient supply chain. As The Home Depot's home state, it is
important that both the business and the state work together to
allow for the most efficient economic growth. Working with the
Port of Savannah, The Home Depot strives to keep up with its $11
billion nationwide store inventory, which often has to be
restocked after hurricanes or other weather related events.
Aerospace
Georgia has been rapidly expanding in the
areas of aerospace, agribusiness, energy, IT, logistics, and
manufacturing. Aerospace innovation in Georgia has been one of
the more rapidly growing industries. A large convention was held
on July 29, 2014 to discuss the exploration of aerospace
development in the state. Generation Orbit Launch Services, Inc.
received a phase 1 contract from the Air Force Research
Laboratory to develop a single-stage air launched liquid rocket
vehicle for the purpose of gathering data during a hyper sonic
flight.
Georgia has begun to fund and develop the use of Unmanned Aerial
Vehicle (UAV) technology to aid in the state's agricultural
industry. This technology uses radio controlled helicopters
equipped with high definition cameras to survey crop fields in
order to make more educated decisions about how much chemicals
to use in the fields and where. Eric Johnson is the head of
Georgia tech's UAV Research Facility as well as the leader of a
team of universities that are working together to achieve the
designation as an FAA Center of Excellence for Unmanned Aircraft
Systems. Achieving that designation would give the group funding
for a decade.
University Research in Georgia
Georgia Institute of Technology
Georgia Tech is one of the most prestigious engineering and
research facilities in the World. With 20,000 students based in
a city campus with close proximity to the city of Atlanta, many
companies are eager to tap into the knowledge and research that
Georgia Tech holds.
The Georgia Department of Transportation granted Georgia Tech a
$75,000 study to explore drone usage on the highways in order to
count cars or assist with accident investigations. Georgia State
Representative Harry Geisinger said that "within the next 3 to 5
years, everyone is going to want one…" . The FAA reports that
by 2018 there will be 7,500 commercial drones operating and by
2030 as many as 30,000 drones will be in use.
University of Georgia As the oldest university in the state, The University of
Georgia brings a multitude of opportunities to the table.
Recently, it has partnered up with CMS Technology to focus on
secondary processing in the poultry industry . Increasingly,
Americans are eating more and more chicken instead of beef. As a
result the chicken producers need to ramp up production. As a
leader in poultry processing research, the University of Georgia
is a great partner for a company like CMS Technology who
specializes in producing chemicals used in food process cleaning
equipment.
Emory University
Emory University is a globally recognized university for its
research in medicine. Its medical center is a leading hospital
with highly trained staff that are equipped with the most state-
of- the-art medical technology. Emory Healthcare has been named
by the National Association for Business Resources for the 2nd
year in a row as one of the best employers to work for in the
Atlanta area. Criteria for evaluation include; benefits,
employee engagement and retention, employee education and
development, communication and shared vision, diversity and
inclusion, and work-life balance.
Emory and Georgia Tech Alone spend a combined $1.25 Billion on
research annually. Emory recently obtained $507.1 million &
$333.8 million in federal funding and another $173.3 million in
non-federal funding. Much of that money went directly to the
school of medicine to help fund medical research . This research
supports projects such as the most recent challenge of treating
two American Ebola victims that contracted the virus in West
Africa during a medical mission.
Conclusion
Georgia has continually proven themselves
a leader in all aspects of business, agriculture, IT,
infrastructure, university research, and energy. As a state that
is leading the way in economic growth and constantly breaking
down innovative barriers Georgia is an ideal state for
innovators looking to expand new ideas and technology. Federal
and state tax credits are available to stimulate the efforts.
