Cisco Incentives

July 19, 2021
Carter Wood
Senior Manager
EY
55 Ivan Allen Jr. Blvd., Suite 1000
Atlanta, Georgia 30308
Dear Carter:
We know that Cisco can choose from a wide range of locations around the globe to establish its
business. Governor Kemp and I sincerely appreciate your client’s consideration of Georgia as
the home of Cisco’s next investment. We want them to succeed and prosper here.
Georgia offers unique assets that give your business the advantage it needs to grow and
compete. Georgia’s outstanding logistics, well-trained and educated workforce, low business
costs, pro-business climate and high quality of life have landed it on a number of “Best Of” lists.
Area Development and Site Selection have both consistently ranked Georgia No. 1 for business
since 2013.
We work hard every day to keep Georgia leading the nation as the best place for business.
It is our understanding that Cisco plans to establish a technology and research and
development hub in midtown Atlanta, Fulton County, Georgia. The performance period will be a
total of 5 years.
The Georgia offer of support is based on the following assumptions:
New Jobs to be Created: 700

Private Investment to be Made: $41,500,000
Average Wage for all employees: $117,962
Timeframe for jobs and investment: 5 years
As detailed on page 3, the total estimated cost savings and cost avoidances for your selected
Georgia location is $11,318,750.
Page 2 of 4
We would like to thank Cisco for considering Georgia as the location for its investment. In
calendar year 2020, the State located 301 facilities in Georgia, announcing 28,424 jobs and
$9.3 billion worth of new and expanding investment. We hope Cisco will join our list of growing
Georgia companies. We look forward to working with you and your client as your project
progresses.
Best Regards,
Padgett Wilson
Commissioner
Page 3 of 4
Summary of Georgia's Proposal

Start-Up Savings:
Project/Site Development
Project Development Grant to offset the expense involved
$2,000,000
in the acquisition of FF&E (REBA)
Training/Hiring
Based on qualified
Retraining Tax Credits
expenditures
Savings from Tax Credits (five-year total)
Quality Jobs Tax Credits1 ($3,000 credit value x estimated
$7,665,000
511 qualifying jobs x 5 years)
Job Tax Credits2,3 ($1,750 credit value x estimated 189
$1,653,750
qualifying jobs x 5 years)
Based on qualified
R&D Tax Credits
expenditures
No, Apportioned only
Corporate Income Tax Apportioned by Property or Payroll
by In-State Sales
Throwback Rule None
Property Tax
State Property Tax No state tax
Estimated Total Cost Savings and Cost Avoidances $11,318,750
This offer is good for 30 days from the date of the letter. A letter or e-mail to the Georgia
Department of Economic Development from the company indicating its intention to accept the
incentives listed above and locate its facility in Georgia will initiate the execution of incentive
programs.
1
This estimate is based on information provided to GDEcD as of the date of this letter. Credit values are subject to
change each year based on changes to the average weekly wage of the county, and changes to the average wages
of the jobs being claimed by the company. The annual update to the average weekly wage for the counties is
released each June by the Georgia Department of Labor. For full details regarding eligibility for the Quality Job Tax
Credit, please review O.C.G.A. § 48-7-40.17 and the rules published by the Georgia Department of Revenue in
regulation 560-7-8-.51.
2
This is an estimate, and is based on information provided to GDEcD as of the date of this letter. In addition to
utilizing a qualifying NAICS code, one of the requirements to qualify for the Job Tax Credit each year is that a job
must pay more than the lowest weekly average wage of any county in Georgia ($589/week or $30,628/year as of
June 2021). The annual update to the average weekly wage is released each June by the Georgia Department of
Labor. For full details regarding eligibility, please review O.C.G.A. §48-7-40 and the rules published by the Georgia
Department of Community Affairs in Chapter 110-9.1 and by the Georgia Department of Revenue in regulation 560-7-
8-.36.
3 The primary location under consideration for this project in midtown Atlanta is located within a state Opportunity
Zone that is currently slated to expire at the end of 2021. Eligible jobs created prior to the expiration of the
Opportunity Zone will be eligible for an annual credit of $3,500 for a period of 5 years, so long as the job is
maintained. The estimate above is a conservative one, and does not account for the potential credit value for jobs
created within the state Opportunity Zone.
Page 4 of 4
By accepting this offer the company agrees to a public announcement regarding its chosen
location, and its planned job creation and investment numbers. The Project Development Grant
will not be disbursed until the Company participates in a joint press release with the State and
the Community announcing the Project. The announcement will include the number of new jobs
and private investment figure referenced in this offer letter.
A signed Memorandum of Understanding between the company, local community and the state
of Georgia is necessary to initiate the state Project Development Grant. A signed Performance
& Accountability Agreement will articulate the employment and investment performance terms of
the state Project Development Grant and is a necessary component of the grant application
process.
A local government entity or authorized development authority will be the applicant and recipient
of state Project Development grant funds. The Georgia Department of Community Affairs will
review grant applications, conduct a financial risk analysis on the ultimate recipient (company)
and disburse funds directly to the local government applicant based on receipts from eligible
project activities.
All local partner incentives in this proposal are contingent on local government execution.
Please see attached letter for additional information about the local offer.
All tax credit, sales and use exemptions, and other tax liability estimates within this letter should
be considered an estimate and approximate value. Final determination of the value of tax
credits, sales and use exemptions, and all other tax liabilities will be made by the Georgia
Department of Revenue.
For additional details on qualifying for the job tax credit, including the rules and regulations, visit
the Georgia Department of Community Affairs website:
https://dca.ga.gov/community-economic-development/incentives/job-tax-credits
For additional details on all other tax credits, visit the Georgia Department of Revenue website:
https://dor.georgia.gov/taxes/tax-credits
For the rules and regulations of the Georgia Department of Revenue related to income tax and
credits, visit:
https://dca.ga.gov/community-economic-development/incentives/job-tax-credits
For additional details on qualifying for the sales and use tax exemptions, visit the Georgia
Department of Revenue website:
https://dor.georgia.gov/taxes/business-taxes/sales-use-tax/nontaxable-sales
For the rules and regulations of the Georgia Department of Revenue related to sales & use tax
exemptions, visit:
http://rules.sos.ga.gov/GAC/560-12-2
For the Georgia tax code, visit: http://www.lexisnexis.com/hottopics/gacode

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July 19, 2021

The Georgia offer of support is based on the following assumptions:

New Jobs to be Created: 700

Summary of Georgia's Proposal

Estimated Total Cost Savings and Cost Avoidances $11,318,750

For the Georgia tax code, visit: http://www.lexisnexis.com/hottopics/gacode

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