Corporate Tax Credits
Georgia offers a range of corporate tax credits that enable companies to minimize or completely eliminate state corporate income taxes which, at six percent, are already among the lowest in the nation.
Job Tax Credit
Companies and their headquarters that are engaged in strategic industries such as manufacturing, warehousing & distribution, processing, telecommunications, broadcasting, tourism, and research and development may qualify for Georgia's Job Tax Credit Program. Depending, on the community's tier, companies must create between five and 25 net new full-time jobs in the first year to qualify. Credits may also be accrued for additional jobs created in 2-5 years. Jobs created outside of year five may not be claimed unless a new threshold for job creation (year 1) is met. Haralson County is a Tier 2 County. Companies creating 10 or more jobs in a Tier 2 County may receive a $2,500 tax credit. An additional $500 credit is offered in counties that participate in a multi-count joint development authority. Haralson is in a joint development authority so the total job tax credit is $3,000 per new job. Increased job tax credits, equal to Tier 1 credits, are also allowed for companies that create jobs in Less Developed Census Tracts (LDCT), Opportunity Zones (OZ), or Military Zones (MZ). Opportunity Zones, Military Zones, as well as Georgia's 40 least developed counties offer job tax credits to businesses of any nature, including retail business.
Credits may be taken against 100 percent of state corporate income tax liability in Haralson County because of our Tier 2 status. Credits that are claimed but not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which qualified jobs were established.
Port Tax Credit Bonus
The Port Tax Credit Bonus is available to taxpayers who increase imports or exports through a Georgia port by 10 percent over the previous or base year. Base year port traffic must be at least 75 net tons, five containers, or 10 TEUs (twenty-foot equivalent units); if not, the percentage increase in port traffic will be calculated using 75 net tons, five containers, or 10 TEUs as the base. The port tax credit bonus can be used with either the Job or Investment Tax credit program, provided that the company meets the requirements for one of those programs. Port Tax Credits may be used to offset up to 50 percent of the company's corporate income tax liability. Unused credits may be carried for 10 years, provided that the increase in port traffic remains above the minimum level and that the company continues to meet the job or investment tax credit requirements. Note that the Port Tax Credit Bonus cannot be utilized with the Quality Jobs Tax Credit and can only be used in Opportunity Zones, Military Zones, and Less Developed Census Tracts in limited cases by existing large distribution centers.
Port Tax Credit Bonus for JOB Tax Credits- This "port bonus" is an additional $1,250 per job credit for taxpayers with qualified increases in shipments through a Georgia port. The $1,250 is added to the Job Tax Credit.
Port Tax Credit Bonus for INVESTMENT Tax Credit- This "port bonus" increases the Investment Tax Credit to the equivalent of a Tier 1 location regardless of the tier level. The port bonus would therefore be equal to five percent of the qualified investment in expenses directly related to manufacturing or providing telecommunication services with the credit increasing to eight percent for recycling, pollution control, and defense conversion.
Quality Jobs Tax Credit
Companies that create at least 50 jobs in a 12-month period where each job pays wages at least 110 percent of the county average are eligible to receive a tax credit of $2,500-$5,000 per job, per year, for up to five years, based on the scaled system below. New quality jobs created within seven years can qualify for the credit. Credits may be used to offset the company's payroll withholding once all other tax liability has been exhausted, and may be carried forward for 10 years. New jobs that do not meet the eligibility requirements for that program separately. For Current Average County Wages, visit http://explorer.dol.state.ga.us/mis/Current/ewcurrent.pdf.
Average Wage Requirement
(% of county average)
Credit Value Per
New Quality Job
>110% and <120%
>120% and <150%
>150% and <175%
>175% and <200%
200% or greater
Research & Development
Georgia offers an incentive to new and existing business entities performing qualified research and development in Georgia. Companies may claim a 10 percent tax credit of increased R&D expenses subject to a base amount calculation.
The base amount = Current Year Georgia Gross Receipts x (average of the ratios of the company's qualified Georgia research expenses to Georgia gross receipts for the preceding three taxable years) OR 0.300, whichever is less. For new Georgia companies or for companies with no prior R&D expenditures in Georgia, the base amount is 30 percent of the current year's Georgia gross receipts.
The credit is determined by taking the current year's qualified R&D expenses, subtracting the base amount, and multiplying by 10 percent. The R&D credit is applied to 50 percent of the company's net Georgia income tax liability after all other credits have been applied. In the first five years of a newly formed business entity in Georgia, any excess R&D credit can then be applied to the company's state payroll withholding. Any unused credits can be carried forward for up to 10 years from the close of the taxable year in which the qualified research expenses were made.
Mega Project Tax Credit
Companies that employ at least 1,800 net new employees, and either invest a minimum of $450 million or have minimum annual payroll of $150 million may claim a $5,250 per job, per year tax credit for the first five years of each net new job position. Credits are first applied to state corporate income tax, with excess credits eligible for use against payroll withholding. Credits may be carried forward for 10 years.
Child Care Tax Credits
Employers who purchase or build qualified child care facilities are eligible to receive Georgia income tax credits equal to 100 percent of the cost of construction. The credit for the cost of construction is spread over 10 years (10% each year). Unused child credits from the purchased or construction of a child care facility can be carried forward three years. The child care facility must be licensed by the state.
Employers who provide or sponsor child care employees are eligible for a credit against Georgia income tax equal to 75 percent of the employer's direct costs. Credits that are related to the operating cost of the facility may be carried forward five years. All child care credits can be used against 50 percent of the taxpayer's income tax liability in a given year.