Sales & Use Exemptions

There is a large variety of state Sales and Use Tax Exemptions available to expanding businesses in Columbia County. See the list below for a summarized description. For more detailed information, continue reading on this web page.

Georgia Sales & Use Tax Exemption Summary List

Manufacturing Machinery & Components
Machinery Related to Aircraft-Remanufacturing
Overhead Materials for Defense-Related Manufacturing
Primary Materials Handling Equipment & Racking Systems
Pollution Control Equipment
Computer Equipment Purchases of $15 million or more
“Cleanroom” Machinery, Equipment & Materials
Electricity for Manufacturing when [$ of Electricity] > [$ of ½ Materials]

Manufacturing Machinery & Components

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 components which are purchased to upgrade machinery used directly in the manufacture of tangible personal property in a manufacturing plant.

Machinery used directly in the manufacture of tangible personal property when the machinery is incorporated as additional machinery for the first time into a manufacturing plant presently existing in Georgia

Machinery which is used directly in the manufacture of tangible personal property when the machinery is incorporated for the first time into a new manufacturing plant located in this state.

The sale or use of repair or replacement parts, machinery clothing or replacement machinery clothing, molds or replacement molds, dies or replacement dies, and tooling or replacement tooling for machinery used directly in the manufacture of tangible personal property in a manufacturing plant presently existing in Georgia

Aircraft Remanufacturing

Machinery used directly in the remanufacture of aircraft engines, parts, and components on a factory basis.

Overhead Materials for Defense-Related Manufacturing

Overhead materials consumed in the performance of certain contracts between the Department of Defense or NASA and a contractor engaged in manufacturing.

Primary Materials Handling Equipment

Purchases of primary material handling equipment and racking systems that are used directly for the storage, handling, and moving 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 have greater than 15% retail sales are exempt from sales and use taxes.

The sale of machinery, equipment, and materials incorporated into and used in the construction or operation of a clean room of Class 100 or less in Georgia, provided that such clean room is used directly in the manufacture of tangible personal property.

Computer Equipment Purchases of $15 million or More

The sale or lease of computer equipment to be used at a facility or facilities in Georgia to any high-tech company classified under Certain NAICS Codes where such sale of computer equipment exceeds $15 million for any calendar year, or, where in the event of a lease of such computer equipment, the fair market value of such leased computer equipment exceeds $15 million for any calendar year.

“Clean Room” Machinery, Equipment & Materials

Electricity for Manufacturing when [cost of Electricity] > [cost of ½ Materials]

Electricity purchased that interacts directly with a product being manufactured is exempt from sales taxes when the total cost of the electricity exceeds 50% of the cost of all materials used, including electricity, in making the product. This exemption requires a utility study to document the conditions of the exemption.