According to the US Bureau of Labor Statistics, at mid-summer 2015 Georgia continues to experience its lowest level of unemployment since the early stages of the Great Recession in July 2008. Many leading economists continue to predict a positive economic outlook for the state in the foreseeable future, including the creation of jobs in nearly every major industry.
Is your business expanding? Are you “Now Hiring”? Many business owners are not aware of the opportunity to offset their Georgia income tax liability with Georgia Jobs Tax Credits. These credits are available to all business entity types (including pass-through entities) involved in certain industries including manufacturing, telecommunications, warehousing and distribution, tourism, and elder care facilities (among others). A credit of up to $4,000 per employee for 5 years can be obtained for each job created and maintained in designated Georgia counties. This equates to tax savings of as much as $20,000 per job created!
The amount of the credit available depends on the annual economic ranking of the county by the State Department of Community Affairs. Chatham County has been designated as a Tier 3 county which qualifies for up to $1,750 for each job as long as at least 15 new jobs have been created. Laurens County has been designated as a Tier 1 county which qualifies for up to $4,000 for each new job as long as at least 2 new jobs have been created. There are special Military Zones located within the state which offer up to $4,000 credit per job to businesses of any industry, including retail, as long as at least 2 new jobs have been created.
In order to qualify, the newly created position must be new, full-time (35+ hours per week) and permanent. In addition, the employer must make health insurance available to the employee consistent with what is offered to existing employees and pay wages of at least $22,152 per year.
But wait – there’s more! For employers who qualify for the Jobs Tax Credit, there is a bonus for those that increase their imports or exports through a Georgia port by at least 10% over the previous or base year. The “port bonus” is an additional $1,250 per new job for up to 5 years.
We will be more than happy to work with you in calculating the amount of Georgia Jobs Credit your business is entitled to take. Please feel free to give our office a call.