Jobs Tax Credits

With the Tax Cuts and Jobs Act making broad changes to the tax landscape, it’s more important than ever for businesses to evaluate their tax credits carefully. If you haven’t analyzed your job creation recently, you may have overlooked a key opportunity for tax savings.

The qualifications for the Georgia jobs tax credit are quite extensive, so it’s important to understand them thoroughly to get the maximum benefit when you’re preparing your company’s taxes. Each type of jobs tax credit has different eligibility rules and offers different credit benefit rates per new job.

Since you cannot change the tax credit designation of a job once you’ve claimed a jobs tax credit for that position, it’s important that you understand the distinction between the various jobs tax credits. Our team can help you do this accurately and efficiently, so you’re getting the best possible credit for every job created.

The tier-based jobs tax credit only applies to certain businesses engaged in these fields (unless the business is located in zone or county with preferential credit treatment):

• Manufacturing
• Warehousing and distribution
• Processing (including software development)
• Tourism
• Telecommunications
• Research and development

Businesses in other industries (such as retail or professional services) may qualify for the other types of jobs tax credits. Counties are annually ranked based on their unemployment rate, per capita income, and the percentage of residents with incomes below the poverty level. If unemployment and poverty are high and the per capita income is low, your county may offer the jobs tax credit to any businesses regardless of industry in an attempt to encourage the creation of new, high-paying positions in the area.  Aprio closely monitors these changes each year to remain current when advising businesses on the various types of jobs tax credits that they may be eligible to claim.