Georgia State Tax Incentives

Georgia Job Tax Credit

The Georgia JTC provides an incentive for companies to hire new employees and drive growth.

  • $750 to $4,000 per year for 5 years per new job created
  • Credit amount is based on industry and location of new jobs created
  • Required to be full-time employee, offered health insurance, W2, and make more than lowest GA county average wage
  • Up to 100% reduction in state income tax liability and can also offset withholding taxes
  • 10-year carry-forward for unused portions of the credit
  • Each year, the state of Georgia designates all counties, Tier 1 through Tier 4, based on economic activity and other factors. The tiering system determines the size of the JTC for each county.

GA JTC Example - $80,000 total credit

Bob’s Widgets is located in Crisp County, Georgia which has a Tier 1 Lower 40 designation. In 2023 they increased their headcount by 4 employees as compared to 2022. Bob is able to claim a $4000 Job Tax Credit per employee each year in 2023 through 2027 as long as he maintains those jobs during that time. A total credit of $80,000 is realized during the 5-year JTC credit period.

Georgia Retraining Tax Credit

The Georgia RTC helps offset the costs associated with training employees on new software and equipment.

  • Up to $1250 per year per employee ($500 maximum credit per training program)
  • Up to 50% reduction of state income tax liability
  • Can be claimed every year
  • Qualified training includes certain new software or technology systems and new equipment
  • 10-year carry-forward for unused portions of the credit

Georgia RTC Example

A manufacturer implements a new ERP System in 2023 in addition to purchasing a new material handling system for their warehouse. 50 employees are required to train for 40 total hours on the new ERP system and 20 total hours on the new material handling system. If the average wage of each employee is $20 per hour, a credit could be realized of $500 per employee for the training on the ERP system and a $400 per employee credit for the training on the material handling system for that tax year. A total credit of $45,000 could be claimed.

Georgia Investment Tax Credit

The Georgia Investment Tax Credit provides up to an 8% credit for manufacturers and telecommunications companies who make capital investments in the state of Georgia.

  • Utilizes the same County Tiering System as the GA Job Tax Credit
  • A credit of 1-8% of the investment amount depending on location and type of investment
  • Qualified investments include land acquisitions, improvements, buildings, or equipment used in a manufacturing or telecom facility
  • Can offset up to 50% of tax liability and can be applied to payroll withholding.
  • 10-year carry forward for unused portions of the credit

Georgia Investment Credit Example

A manufacturer in a Tier 1 County invests $3M in a new building to expand operations. $500,000 of that amount was to purchase a new pollution control system. They would be able to claim a 5% credit on the $2,500,000 building and an 8% credit on the $500,000 system. The total credit amount would be $165,000.

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