Job tax credits are available to a business or to its headquarters engaged in any of the following six categories [footnote 1]. Taxpayers may choose between job tax credits or investment tax credits.

• Manufacturing
• Telecommunications
• Warehouse Distribution
• Research & Development
• Processing
• Tourism

Job tax credits range from $4,000 to $750 per job each year for 5 years.

Example: Taxpayer creates 50 jobs in a tier 1 county offering a $4,000 credit; receives $1 million in tax credits over 5 years to reduce or eliminate Georgia income tax [50 jobs x $4,000 x 5 years = $1 million].

Job tax credits in a tier 1 or tier 2 county can be used against 100% of income tax liability [chart below]. The excess over 100% is credited to Georgia withholding tax (with a limitation of $3,500 per job) in tier 1 counties only. Tier 3 & 4 counties are limited to 50% of tax liability in a given year. Unused job tax credits may be carried forward ten years.

For each of the four tiers, there is a certain minimum number of jobs required to claim the job tax credit. The chart below lists benefits and requirements for each tier.

Example: Taxpayer creating a minimum of 5 jobs in a tier 1 county would qualify for a $4,000 or $3,500 per job tax credit. Taxpayer in tier 4 would need to create 25 or more jobs to receive a $1,250 or $750 credit. The exact credit for each Georgia county is indicated on the tax credit map on pages 4-5.

Port Job Tax Credit Bonus. The port tax credit is a $1,250 per job bonus for taxpayers with large increases in shipments out of a Georgia port. The $1,250 is added to the job tax credit [above].

Example: Taxpayer creates 50 jobs in a tier 1 county. Taxpayer is eligible to receive the port bonus, adding $1,250 to $4,000 job tax credit for total credit of $5,250 for each job. Taxpayer is eligible for $1,312,500 in tax credits spread over 5 years to reduce or eliminate Georgia income tax: [50 jobs x $5,250 x 5 years = $1,312,500].

 

Footnote 1: Increased job tax credits equal to tier 1 credits are allowed for companies that create jobs in less developed pockets of metro areas regardless of the county's tier. Georgia has 40 counties that offer job tax credits to retail and to business operations other than those listed above. [To receive a list of 40 counties from the Department of Community Affairs (DCA) please email rmorriso@dca.state.ga.us or srobinso@dca.state.ga.us]