TAX CREDITS

Job Tax Credit:  Businesses that create new full-time jobs may be eligible for an annual tax credit of $1,250 to $4,000 per job which can be claimed for a total of 5 years. The amount of the Job Tax Credit is based on the development tier of the county where the project is located.  These non-refundable and non-transferable credits can be used to offset state corporate income tax liability and may be carried forward for up to 10 years. 

Quality Jobs Tax Credit:  This program offers tax credits to companies that create at least 50 net new jobs with wages that are at least 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 where 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 that have operated in Georgia for at least 3 years and have invested in plant or facility upgrades.  A tax credit of up to 8% of qualified investments may be claimed with the actual credit based on the development tier of the county where the project is located. The tax credits can be used to offset up to 50% of a state corporate income tax liability. 

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: May 2016


 
BIGGINS LACY SHAPIRO & COMPANY
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
30 S. Wacker, Suite 2200
Chicago, IL 60606
(312) 924-2490