Businesses expanding or newly arriving in Georgia are often eligible for a variety of state and local incentives and tax exemptions. The following incentives and tax exemptions are of particular interest to companies establishing or expanding operations in Georgia.
Georgia's moderate corporate income tax rate (six percent) has not changed since 1969. This tax applies only to the portion of income that is earned in Georgia and is based on gross receipts in the state.
Companies increasing employment in Georgia qualify for a job tax credit against state corporate income tax liability when the following conditions are met:
The business entity is engaged in manufacturing, warehousing and distribution, processing, telecommunications, research and development, tourism, insurance, services for the disabled or elderly, bio medical manufacturing or alternative energy products manufacturing;
Minimum thresholds for new job creation are met;
The jobs pay in excess of the lowest wage paid by any Georgia county per year and;
The employer makes health care coverage available.
Unused credits may be carried forward for 10 years from the year they are earned.
Tier 1
$4,000*
Tier 2
$3,000*
Tier 3
$1,750*
Tier 4
$1,250*
*Includes the $500 Joint Development Authorities (JDA) bonus for local governments who participate in a JDA. Cobb County is a member of the Joint Development of Authority of Cherokee and Cobb Counties.
i. Administration
The job tax credit program is administered through the Georgia Department of Community Affairs and the Georgia Department of Revenue.
ii. Application process:
· Filing for Credit: The taxpayer submits Department of Community Affairs form IT-CA 2001 along with the Georgia Corporate Income Tax filing to the Georgia Department of Revenue.
· Filing for Withholding Credit: Companies applying for the withholding credit must complete form IT-JOBW (Georgia Department of Revenue) and file with the Georgia Department of Revenue 30 days before a tax return is filed.
iii. Coordination with other Credits
The job tax credit may not be taken with investment tax credits or optional investment tax credits but may be taken with retraining and other tax credits.
Governing Georgia Code and Rules: Official Code of Georgia Annotated Section 48-7-40, Section 40-7-40.1, Section 36-62-5.1, 33-8-4.1 and Rules of Department of Community Affairs (DCA) 110-9 Job Tax Credit Program, Georgia Department of Revenue Rules and Regulations 560-7-8-.36.