Strategic industries such as distribution, technology, manufacturing, telecom, processing companies and their headquarters qualify for Georgia’s Job Tax Credit. Depending on the community’s tier, companies must create between five and twenty-five net new jobs per year to qualify. For each year (up to five years) the jobs are maintained, qualified companies can claim a tax credit with a value of $750-$3,500 per job, per year. An additional $500 credit is offered in counties that participate in a multi-county joint development authority. Unused job tax credits may be carried forward ten years. Increased job tax credits, equal to Tier 1 credits, are also allowed for companies that create jobs in less developed pockets of metro areas, regardless of the county’s tier. Georgia has forty counties that offer job tax credits to retail and business operations. The credit for each Georgia county is indicated on the tax credit map that you can access on the “useful documents” tab on the left side of the screen.
As you can see Chattooga County, GA is a “Tier 1” credit county. In Tier 1 and 2 counties, credits may be taken against 100% of corporate income tax liability. Excess credits may be carried forward for ten years. Additionally, Tier 1 counties allow for excess credits to be credited to Georgia payroll withholding taxes (with limitation of $3,500 per job per year). Job s can count toward either the Job Tax Credit or the Quality Jobs Tax Credit.
Example: Taxpayer creates 50 jobs in a Tier 1 county, like Chattooga, offering a $4,000 credit (due to Chattooga’s participation in a multi-county joint development authority) receives $1 million in tax credits over five years to reduce or eliminate Georgia income tax. [50 jobs X $4,000 X 5 years=$1 million]. (For this and more information, please see www.georgia.org)