TAX CREDITS

Job Tax Credit:  Businesses that create new full-time jobs may be eligible for an annual corporate income tax credit of $1,250 to $4,000 per job.  The exact value of the as-of-right tax credits will depend on job creation and the development tier of the county or census tract where the project is located.  These non-refundable and non-transferable credits are claimed over 5 years.  Unused credits may be carried forward for up to 10 years. 

Quality Jobs Tax Credit:  This as-of-right program offers tax credits to companies that create at least 50 net new jobs with wages that are at or above 110% of the county average wage. Credits range from $2,500 to $5,000 per job, per year and may be claimed for up to 5 years.  The amount of credit per job will depend on the development tier of the county in which the project is located. Quality Jobs Credits can be used to offset up to 100% of state corporate income tax liability.  If the credit exceeds a company’s tax liability in any given year, the business may use the credit against its state payroll withholding.   Any unused credits can be carried forward for up to 10 years.  

Mega Project Tax Credit: Companies that create at least 1,800 net new jobs and either invest a minimum of $450 million in a business facility or have an annual payroll of at least $150 million may claim a tax credit of $5,250 per job, per year for a period of 5 years. Credits can be used to offset up to 100% of state corporate income tax liability.  If the credit exceeds a company’s tax liability in any given year, the business may use the credit against its state payroll withholding.   Any unused credits can be carried forward for up to 10 years.  

Investment Tax Credit:  Provides tax credits to companies engaged in manufacturing or telecommunications support that have operated in Georgia for at least 3 years.  A business must invest at least $50,000 in plant or facility upgrades to be eligible for a credit of up to 8% of qualified investments.  The actual credit will depend on the development tier of the county in which the project is located and the type of capital expenditures that are made by a business.  Credits can be used to offset up to 50% of a state corporate income tax liability.  Any unused credits can be carried forward for up to 10 years. 

Research and Development Tax Credit:  Businesses may claim a tax credit equal to 10% of the increase in R&D spending when compared to a base period.  The credit can be used to offset up to 50% of net Georgia corporate income tax liability after all other credits have been applied.  Any excess R&D credits can be applied to state payroll withholdings.  Unused credits can be carried forward for up to 10 years.

TAX EXEMPTIONS

Sales & Use Tax Exemptions: Machinery, equipment, and materials used in the manufacturing process are exempt from sales tax.

TRAINING PROGRAMS

Retraining Tax Credit: Businesses that retrain employees to use new equipment or learn new skills may qualify for a tax credit equal to 50% of direct training expenses with a maximum credit of $500 per full-time employee. Tax credits can be used to offset up to 50% of a company’s state corporate income tax liability. Unused credits can be carried forward for up to 10 years.

Quick Start Employee Training: Provides training space, instructors and all needed materials for new employees in skill-based jobs at no cost to qualifying companies.  

 

Last updated: April 2017

 


 
BIGGINS LACY SHAPIRO & COMPANY
 
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
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New York, NY 10003
(646) 652-7555
CHICAGO
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Chicago, IL 60606
(312) 924-2490
CALIFORNIA
1255 Treat Boulevard, Suite 300
Walnut Creek, CA 94597
(925) 239-1711