Georgia Quality Jobs Tax Credit
The Georgia Quality Job Tax Credit program rewards businesses creating new jobs and paying higher than average wages. The program provides a tax credit to businesses that create at least 50 new jobs in a twelve month period. The jobs must pay wages that are at least ten percent higher than the county average wage.
Businesses are not limited to certain industries (all industries are eligible).
Businesses must create at least 50 eligible new full-time jobs in a twelve month period.
Eligible new full-time jobs must be:
- Employed for a minimum of 30 hours per week;
- Paid wages that are at least 110% of the county average wage;
- A new job to the state of GA – not one that is or was already located in GA (no in-state transfers)
The Georgia Quality Jobs Tax Credit amount is determined by the percentage over the county wage average:
|Average Wage Requirement (% of County Average Wage)||Tax Credit Amount Per New Quality Job|
|≥110% and <120%||$2,500|
|≥120% and <150%||$3,000|
|≥150% and <175%||$4,000|
|≥175 and <200%||$4,500|
|200% or greater||$5,000|
The Georgia Quality Jobs Tax Credit is a seven year credit program. Credits may be taken on jobs created in years one through five for seven years as long as those jobs are maintained.
The Quality Jobs Tax Credit and the Job Tax Credit cannot be taken on the same jobs.
Taxpayers may go back one year to claim quality jobs tax credits retroactively.
The Georgia Quality Jobs Tax Credit may be used to offset 100% of a company’s Georgia corporate income tax liability.
A company may elect to utilize any excess credits against its withholding tax by filing Form IT-WH at least 30 days before filing the original tax return.
Unused credits may be carried forward for up to 10 years.
Estimated benefit for companies participating in the job tax credit:
If an eligible business creates 25 net new jobs under the quality jobs tax credit program and maintains those jobs for five years, the business could generate a five year credit total of up to $620,000 depending on the wage percentage over the county average:
|Average Wage Requirement (% of County Average Wage)||Credit Amount Per New Quality Job||Annual Number of Net New Jobs||5 Year Credit Potential|
|≥110% and <120%||$2,500||25||$312,500|
|≥120% and <150%||$3,000||25||$375,000|
|≥150% and <175%||$4,000||25||$500,000|
|≥175 and <200%||$4,500||25||$562,500|
|200% or greater||$5,000||25||$625,000|
Information needed to calculate the credit:
- Business NAICS code
- List of locations
- Detailed payroll information for the current and prior two tax years including:
- Location ID
- Employee Name
- Employee Address (street address, city, state and zip)
- Hire Date
- Termination Date
- Re-hire Date (if applicable)
- Gross annual wages
- Total hours worked