Why Tax Credits Are The Best Thing For Businesses Since Sliced Bread

Tax Credits and Businesses

Tax credits were created to give companies an incentive to stimulate business and economic growth. Tax Credits are a dollar for dollar value used to offset tax liability. In Georgia, $6,000 in tax credits is the same as $100,000 in tax deductions. Take a look at the example below to see the benefits of tax credits:

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There are 90 different kinds of federal and state tax credits available for qualified Georgia businesses. Some of the more popular tax credits are the Job Tax Credit, Opportunity Zone Tax Credit, Quality Job Tax Credit and Work Opportunity Tax Credit (WOTC). Here is what companies can earn from each:

1. The Job Tax Creditchicago-1221228

• Companies can get up to $4,000 per new job per year

• 5 years of tax credits per new job

• Unused tax credits may be carried forward for 10 years from the year the tax credits are earned

• May use tax credits against payroll withholding

2. The Opportunity Zone Tax Credit

This tax credit is reserved for companies located in specified geographic areas designated by the state. With these tax credits, businesses can receive:

• Up to $3,500 per new job per year

• 5 years of tax credits per new job

• Unused tax credits may be carried forward for 10 years from the year the tax credits are earned.

• May use tax credits against payroll withholding

workers-05-12402423. Quality Job Tax Credit

When a company creates 50 or more jobs in Georgia that pay more than the average wage of the county it’s located in, the company may qualify for:

• Up to $5,000 per qualified new job

• 5 years of tax credits per qualified new job

• Unused credits carryover for 10 years

• May use tax credits against payroll withholding taxes

4. Work Opportunity Tax Credittraining-room-1-1546126

This tax credit is for any business that files federal income tax and hires at least 1 person. These businesses can qualify for:

• Up to $2,400 for each qualified adult new hire

• Up to $1,200 for each qualified summer youth new hire

• Up to $4,800 for each qualified veteran new hire

• Up to $9,000 for each qualified long-term family assistance

Depending on where your company’s located, you can qualify for multiple tax credits. Contact us today at info@tracsgroup.com or 855-668-7227 for a free, no risk, no obligation consultation to find out if your company qualifies for any of these tax credits.

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