Job Tax Credit

A job credit is a tax credit that helps fuel company expansion by rewarding job creation. Chatham County is located in a tier 3 county, meaning job credits provide as much as $1,750 per job in annual tax savings with a minimum of 15 jobs created for up to five years.  Each credit cannot be more than 50 percent of the taxpayer’s total state income tax liability for the taxable year. A credit claimed but not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which the qualified jobs were established.

They’re available to businesses (or their headquarters) in seven strategic sectors:
  • Manufacturing
  • Telecommunications
  • Broadcasting
  • Warehousing & distribution
  • Research & development
  • Processing
  • Tourism
In addition, businesses designated as Less Developed Census Tracts (LDCT), Opportunity Zones (OZ), or Military Zones (MZ) can receive job tax credits that are higher in value.
 
Tier
Job Tax Credit $
Min. New Jobs
Use of Credits
Carry Forward
3
$1,750
15
50% of tax liability
10 years
MZ/OZ
$3,500
2
100% of tax liability
- excess to withholding
10 years
LDCT
$3,500
5
100% of tax liability
- excess to withholding
10 years


How the Job Tax Credit Works

Suppose a manufacturer creates 100 jobs in Chatham County (tier 3). The table shows the value of this job credit would be $1,750 per job. So the company would receive $875,000 in tax credits over a five-year period - bringing a $875,000 reduction in Georgia income tax.

This is calculated as such: 100 jobs x $1,750 credit per job = $175,000 x 5 years = $875,000

As the table above shows, job credits in tier 3 and are limited to 50 percent of tax liability in a given year. The job credits may be carried forward for up to 10 years.

And job credits can apply to any business outside the strategic sectors, provided the jobs are created in Opportunity Zones, Military Zones or Georgia’s 40 least developed counties.

Businesses should compare the benefits of the job tax credit with those of the investment tax credit, as taxpayers are allowed to claim one or the other, but not both.

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