Tax credits give Georgia businesses the opportunity to minimize or even eliminate state corporate income tax. They apply to all qualifying companies – large, small and in between – rooted in Georgia or new to the state.
Typically, tax credits apply to 50 percent of a company’s annual state corporate income tax liability. In some cases, they can offset up to 100 percent, with any excess credits applied to state payroll withholding liability.
These state tax credits may be combined with tax exemptions and local government incentives.
Learn about tax exemptions ▶
Here are the primary tax credits Georgia extends to new and existing companies:
Job Tax Credit
Businesses in Georgia’s strategic industries can earn as much as $4,000 in annual tax savings for each new job created, for up to five years. The exact value of the job credits depends on two factors – how many jobs are created, and where.
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Quality Jobs Tax Credit
Companies that create at least 50 jobs in a 24-month period – at wages that are at least 10 percent higher than the county average – may qualify for a tax credit of $2,500 to $5,000 per job.
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Port Tax Credit Bonus
Georgia companies that increase imports or exports through a Georgia port by at least 10 percent may qualify for either a $1,250 bonus added to the job tax credit or an adjustment to the investment tax credit.
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Work Opportunity Tax Credit
Georgia’s Department of Labor administers a federal tax credit to Georgia companies that hire individuals who have faced barriers to employment. The tax credit ranges from $1,200 to $9,000 per hire.
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Mega Project Tax Credit
Businesses that employ at least 1,800 “net new” employees and have either a minimum annual payroll of $150 million or make a minimum $450 million investment in Georgia may qualify for the mega project tax credit.
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Investment Tax Credit
Companies in manufacturing or telecommunications support that have operated in Georgia for at least three years are eligible to earn investment tax credits of 1 percent to 8 percent of qualified capital investments of $50,000 or more.
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Research And Development Tax Credit
Companies that spend more on qualified research in Georgia may qualify for an R&D tax credit equal to a percentage of that spending increase.
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Retraining Tax Credit
Georgia businesses may offset their investment in retraining employees to use new equipment or learn new skills through a retraining tax credit. The credit equals 50 percent of direct training expenses, up to $500 credit per full-time employee, per training program.
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Film, Television And Digital Entertainment Tax Credit
Film and television companies may receive a tax credit of up to 30 percent of money spent on production and post-production in Georgia, either in a single production or on multiple projects. Minimum spending amount is $500,000.
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Musical Tax Credit
Beginning January 1, 2018, eligible production companies who meet the applicable spending threshold may receive a tax credit of up to twenty percent on qualified production expenditures on eligible musical or theatrical performances or recorded musical performances. Minimum spend is $500,000 for musical or theatrical performances, $250,000 for synchronized recorded musical performance, and $100,000 for any other recorded musical performance.
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PROCESS FOR APPLYING TAX CREDITS TO GEORGIA PAYROLL WITHHOLDING LIABILITY
The process to elect to use the withholding benefit is: