Companies may qualify for the Georgia’s Job Tax Credit Program if they or their headquarters are engaged in strategic industries such as manufacturing, including, but not limited to, manufacturing alternative energy products for use in solar, wind, battery, bio-energy, bio-fuel, and electric vehicle enterprises, warehousing & distribution, processing, telecommunications, broadcasting, tourism,research and development industries, biomedical manufacturing, and services for the elderly and persons with disabilities. Depending n the community’s tier, companies must create between 2 and 25 net new full-time jobs in a 12-month period to qualify. Credits must also be accrued for additional jobs created in years two through five.
Jobs created outside of year five may not be claimed unless a new threshold for job creation (year 1) is met. Qualified companies can claim a tax credit with a value of $1,250 – $4,000 per job, per year, beginning with the first taxable year in which the new job is created and for the following four years the job is maintained.Companies that create 5 or more jobs in Less Developed Census Tract (LDCT) receive Tier 1 Tax credits. Opportunity Zones (OZ), Military Zones (MZ), as well as Georgia’s 40 least developed counties, offer job tax credits to businesses of any nature, including retail businesses that create at least 2 new jobs. The credit value for each county is indicated on the tax credit map on page two and payroll withholding benefits are described below.
Credits may be taken against 100 percent of state corporate income tax liability in Tier 1 and 2 counties, or against 50 percent of state corporate income tax liability in Tier 3 and 4 counties. Credits that are claimed but not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which qualified jobs were established. Additionally, in Tier 1 counties, excess credits may be credited to Georgia payroll withholding taxes (with a limitation of $3,500 per job, per year). Job Tax Credits are subject to program requirements as outlined in O.C.G.A 48-7-40 and rules published by the Georgia Department of Community Affairs in Chapter 110-9-1.