Georgia Jobs Tax Credit
Basic Incentive Information
Credit Duration
5 years
You can claim this tax credit every year for five consecutive years for each qualifying job you create. After five years, you stop receiving credits for that specific job.
Carryforward Period
10 years
If you can't use all your credits in one year because you don't owe enough taxes, you can save them and apply them to your taxes for up to ten years in the future. Think of it like rolling over unused credits until you need them.
Transferable
No
You cannot sell or give your tax credits to another company or person. The credits stay with your business and can only be used to reduce your own tax bill.
Refundable
No
If your credits are bigger than your tax bill, the state won't write you a check for the difference. You can only use the credits to reduce what you owe down to zero.
CPA Audit Required
No
You don't need to hire an independent accountant to verify your numbers before claiming this credit. However, you still need to maintain accurate records and meet all program requirements.
DOL Certification
Yes
You must get official paperwork from the Georgia Department of Labor confirming that your new employees were previously unemployed or underemployed. This certification is required to claim the credit.
Tax Liability Offset
Tier 1 & 2: Credit can offset up to 100% of state income tax liability
Tier 3 & 4: Credit capped at 50% of state income tax liability
Rule to Remember
Credit Amounts by County Tier
All 159 Georgia counties are ranked annually and placed into one of four tiers based on economic factors including unemployment rate, per capita income, and poverty levels.
| County Tier | Annual Credit Per Job | Minimum Jobs Required | Credit Duration |
|---|---|---|---|
| Tier 1 (Most economically challenged) | $3,500 | 2 jobs | 5 years |
| Tier 2 | $2,500 | 10 jobs | 5 years |
| Tier 3 | $1,250 | 15 jobs | 5 years |
| Tier 4 (Least economically challenged) | $750 | 25 jobs | 5 years |
Eligible Industries
To qualify for the Georgia Jobs Tax Credit, businesses must engage in one of the following industries:
- Manufacturing (including alternative energy products for solar, wind, battery, bioenergy, biofuel, and electric vehicle enterprises)
- Warehousing and distribution
- Processing
- Telecommunications
- Broadcasting
- Tourism
- Research and development industries
- Biomedical manufacturing
- Services for the elderly and persons with disabilities
Important Note
Retail businesses do NOT qualify for this tax credit.
Job Quality Requirements
All new full-time employee jobs must meet the following standards:
- Minimum 35 hours per week of work required
- Wages at or above the average wage of the lowest average wage county in Georgia as reported in the Georgia Employment and Wages Averages Report
- Health insurance coverage must be made available to employees (employer is not required to contribute toward coverage)
- Jobs must be maintained each year to continue claiming the credit
Special Designation Areas
How to Apply
- Create Qualifying Jobs: Ensure your business creates the minimum number of new full-time jobs required for your county tier designation.
- Obtain DOL Certification: Acquire certification from the Georgia Department of Labor that the new full-time employees are unemployed or underemployed.
- File Georgia Income Tax Return: Submit your Georgia income tax return with the attached schedule (Form IT-CA01) detailing:
- Number of new jobs created
- Location of the new jobs
- Date the new jobs were created
- Average annual wage of the new jobs
- Claim Credits: Credits must be claimed within one year of the earlier of the date the original tax return was filed or the date such return was due (including any extensions).
Required Form
Georgia Form IT-CA01: Georgia Job Tax Credit schedule must be attached to your income tax return.