Georgia Job Tax Credit Overview
It may sound counterintuitive, but historically-low numbers of employees can lead your clients to a record-high number of Georgia Job Tax Credits.
Since the Georgia Job Tax Credit became available, TaxCredible has worked with hundreds of companies and their CPA firms to apply for the credit.
In our experience, we've seen businesses qualify for an average of $77,000 with the JTC. That's money to reduce taxes, allow business owners to invest in their people, help recover from the pandemic, and more.
The Job Tax Credit is available to a business or to its headquarters engaged in any of the following industries:
- Warehousing and Distribution
- Research & Development
- Processing (data, information, software)
- Services for the Elderly and Persons with Disabilities
- Any business located in the Lower 40 Counties or a Military Zone
Remember, for JTC, you can capture credit layers going back five years, but you can only amend your prior year's return to capture the credit. It's important to utilize this credit quickly when adding headcount.
Taxpayer creates 50 jobs in a tier 1 county offering a $3,500 credit; receives $875,000 in tax credits over 5 years [50 jobs x $3,500/job x 5 years = $875,000].
The benefits and requirements for the Job Tax Credit depend on the county where the jobs are located. Each county in the state is ranked annually in one of four tiers:
- Tier 1 is the least developed
- Tier 2 is moderately developed
- Tier 3 is developed
- Tier 4 is the most developed & any business qualifies
Businesses creating jobs in the following special zones can receive increased credits (similar to those available under Tier 1):
- Designated Less Developed Census Tracts (LDCT)
- Opportunity Zones (OZ) - any business type or industry
- Military Zones (MZ) - any business type or industry
|Tier||Job Tax Credit (For 5 years)||Min. New Jobs||Credit Allowance|
|1||$4,000||2||100% of tax liability - excess to withholding up to $3,500 per job|
|2||$3,000||10||100% of tax liability|
|3||$1,750||15||100% of tax liability|
|4||$1,250||25||100% of tax liability|