Important Changes for Georgia Job Tax Credit Recipients Coming in December

city-development-1222506

Georgia Job Tax Credit

According to the Georgia Department of Community Affairs, the Georgia Job Tax Credit Program, “provides for a statewide job tax credit for any business or headquarters of any such business engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development industries that create and maintain sufficient numbers of  new full-time jobs.” Every year in December, all counties in Georgia are economically ranked and divided into tiers by the Department of Community Affairs according to Georgia Job Tax Credit Law (48-7-40 (b)).  That means that businesses in counties that may have qualified for a certain amount of job tax credits this year might qualify for either a higher or lower credit amount next year.  The amount of job tax credits that a county is eligible for depends on its tier ranking.  Each tier also has specific requirements to fulfill in order to receive job tax credits.  As of today, those requirements are the following according to the Georgia Department of Community Affairs:

Tier 1 – A business must create at least 2 new jobs to be eligible for a credit of 3,500 per job.

Tier 2- The job creation requirement is 10 net new jobs for a credit of $2,500 per job.

Tier 3- The job creation requirement is 15 net new jobs for a credit of $1,250 per job.

Tier 4- The job creation requirement is 25 net new jobs for a credit of $750 per job.

If you’re considering starting or moving a business in a particular county, or if you’re looking to expand your business based on last year’s Job Tax Credits, make sure that your county qualifies for the tax credits that you expect.  Don’t let these changes take you by surprise.

For more information about Job Tax Credits, changing laws,  and your county tier rank, call us at 855-668-7227, email us directly at info@tracsgroup.com,or follow us on LinkedIn.