Beaulieu Expansion May Result in Tax Break

Dalton, GA, Jan. 4, 2009--The Dalton-Whitfield Joint Development Authority will negotiate tax breaks for Beaulieu of America, which has recently expanded operations.

Brian Anderson, president and CEO of the Dalton-Whitfield Chamber of Commerce, said Beaulieu of America added $21 million worth of equipment for a new extrusion operation to produce carpet fiber, along with 50 new jobs.

Beaulieu CEO Ralph Boe said the breaks would help offset some of the investment expense and enable the firm to continue making charitable donations in the surrounding community.

At a December meeting, members of the joint development authority passed an inducement resolution -- an official intent to issue bonds for Beaulieu -- so the company can qualify for property tax breaks.

At the moment, however, there is no binding agreement.

Under state law, only public authorities can hold property that's not taxed.

The authority would issue bonds and Beaulieu would be "the bond holder and the borrower." Basically, the company would lease its equipment from the authority until the end of the tax incentive period.

Anderson said officials are not yet sure what level of tax breaks could be available to Beaulieu, but they hope to save the company $100,000 or more in property taxes.

Related Topics:Beaulieu International Group