Any business, with the exception of retail, that locates or expands in Georgia may take a job tax credit against corporate income tax if minimum job creation, investment and job maintenance requirements are met. Jobs may be created at multiple Georgia locations.
i. Conditions of Eligibility
Any business except retail qualifies.
ii. Number of jobs created
A minimum of 1,800 full-time jobs by the close of the sixth taxable year following the date that the company begins withholding income tax from employees. Companies with high levels of qualified investment will be granted job creation “ramp-up” extensions:
Companies with $600 million in qualified investment by year six have an additional two years to create 1,800 jobs.
Companies with $800 million in qualified investment by year eight have two additional years to create 1,800 jobs.
iii. Wage rate of new employees
The jobs must pay more than the average wage rate of the county where the company locates. County average wage rates are determined by Georgia Employment & Wages, published annually by the Georgia Department of Labor. The required amount in excess varies depending on the county tier level. The table below summarizes pay level thresholds and the amount and duration of the credit per job. The company must maintain a payroll of $150 million for each year of the recapture period (five consecutive tax years) or meet the investment criteria stipulated below to qualify for the credit.
Mega Project Tax Credits by Tier Designation
Tier - 1-4
Wage Requirements - 105% to 120% of county average
Credit per job - $5,250
Payroll Withholding - Yes*
Duration - 5 years
*if credit exceeds company’s corporate tax liability
v. Investment Criteria
A minimum of $450 million in capital investment is required if the payroll requirement mentioned above is not met. The investment must be for construction, renovation, leasing or other costs related to construction or expansion of a facility.
vi. Value
A credit of $5,250 per full-time, qualified job is allowed regardless of location. The previous maximum of 4,500 jobs was removed in 2021.
There is now no cap on number of jobs eligible for the credit.
vii. Administration
The Mega Project Tax Credit is administered by the Georgia Department of Revenue. Credit may be applied against 100 percent of state corporate income tax liability. If the amount of credit exceeds the company’s tax liability in a taxable year, the company may take credit against quarterly or monthly withholding tax payments.
viii. Duration
The credit is allowed for five years. Any unused credit may be carried forward for 10 years.
ix. Application Process
Any company wishing to take advantage of the Mega Project Tax credit must file an application with the Georgia Department of Revenue that describes the project and certifies that all the job and investment requirements are met. The application is considered by a panel which determines if the project will have significant economic impact on a given area. The panel shall make a determination within 30 days of submittal.
x. Coordination with other Credits
Cannot be taken along with job tax credit or investment tax credit.
Governing Georgia Code and Rules: Georgia Code Sections 48-7-40.24 and 48-7-40.25