The Georgia Job Tax Credit

Growth…Rewarded

The Georgia Job Tax Credit is a dollar-for-dollar reduction of your state income tax liability (or withholding in some cases) of up to $4,000 per new job created, per year, for up to 5 years.

This incentive rewards employers in certain areas and industries for creating and sustaining jobs which add to the economic viability of our state.

$4,000/year

Max credit per new job created

5 Year

Credit term

5 -10 Year

Credit carry forward period

15 Min

Qualification call

WHAT IS THE GEORGIA JOB TAX CREDIT?

A Credit for Job Creators…

If your business is adding jobs in Georgia, the state may pay you for it. The Georgia Job Tax Credit rewards companies that create new full-time jobs with a credit of $750 to $4,000 per job, per year, for up to five years — so a single qualifying job can be worth as much as $20,000 over its five-year life. The exact amount depends on your county, and less-developed counties carry the largest credits.

Better still, the credit can offset up to 100% of your Georgia income tax, and in many areas the excess can be applied against your employee payroll withholding — turning new hires into real, bankable savings. Below is how it works, how to claim it, and a quick way to find your county’s tier.

A Quick Example

A distribution company opens a facility in a Tier 2 county and creates 15 new full-time jobs that meet the requirements. At $2,500 per job, plus the $500 Joint Development Authority bonus, that’s $3,000 per job, per year — $45,000 a year, and up to $225,000 over the five-year life of those jobs. Because it’s a Tier 2 county, any credit beyond their income tax bill can offset payroll withholding.

How it Works

The credit amount depends on your county tier

Georgia ranks all 159 counties into four tiers each year, based on economic factors like unemployment and income. Less-developed counties are Tier 1 and carry the highest credit; the most-developed counties are Tier 4. The amounts are per net new job, per year, claimed for five years as long as the jobs are maintained:

County Tier Credit per new job / year Minimum new jobs required
Tier 1 Lower 40 $3,500 2
Tier 1 $3,500 5
Tier 2 $2,500 10
Tier 3 $1,250 15
Tier 4 $750 25

Special zones get Tier 1 treatment. Businesses in a Less Developed Census Tract, Military Zone, or Opportunity Zone are treated as Tier 1 — the highest credit — and the job threshold drops to as few as 2 new jobs, with the credit reaching up to $3,500+ per job.

Joint Development Authority bonus. If your county is a member of a Joint Development Authority (most Georgia counties are), each qualifying job earns an extra $500 per year — which is how the top-tier credit reaches $4,000 per job.

Special Designation Areas & JDA Bonus

Special zones get Tier 1 treatment. Businesses in a Less Developed Census Tract, Military Zone, or Opportunity Zone are treated as Tier 1 — the highest credit — and the job threshold drops to as few as 2 new jobs, with the credit reaching up to $3,500+ per job.

Joint Development Authority bonus. If your county is a member of a Joint Development Authority (most Georgia counties are), each qualifying job earns an extra $500 per year — which is how the top-tier credit reaches $4,000 per job.

Which Businesses Qualify?

In Tier 1, 2, 3, and 4 counties and Less Developed Census Tracts, the credit is generally limited to specific industries: manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism, research and development, and services for the elderly or disabled.

In Tier 1 Lower 40 counties, Military Zones, and Opportunity Zones, the restrictions relax — any lawful business can qualify for the Job Tax Credit.

How the Credit is Used

The Job Tax Credit can offset up to 100% of your Georgia corporate income tax liability.

In Tier 1 Lower 40 and Tier 1 counties (and special zones), any excess credit can be applied against your employees’ payroll withholding — a valuable feature for businesses that don’t yet have a large state income tax bill. Unused credit carries forward for 5 or 10 years depending on the credit year.

What Counts as a Qualifying Job?

To generate the credit, new jobs generally must meet all of the following:

  • Full-time — an average of at least 35 hours per week.
  • Health insurance made available — you must offer coverage to employees in the new jobs (you’re not required to pay for it unless you do so for existing staff).
  • Wage floor — the job must pay more than the average wage of Georgia’s lowest-wage county.
  • Net increase — the credit is based on your net new job growth, not just gross hires.

Do you qualify for the GA Job Tax Credit?

Use our interactive map below to search for your business address(es). You’ll learn which County Tier you are in, how much the Job and Investment credit can be, and if your industry qualifies. Input your address or click on a county to learn more about that location’s qualifications.

The information contained in this map is only intended for display purposes and can change at any time; it is not to be considered tax advice or to guide any tax decision making.

Connect with us to learn more…

With a 15-minute discovery call, we can help you determine your eligibility across multiple credits and incentives.