September 22, 2013
Georgia Business Tax Credits
"The State of Georgia is offering tax credits that may benefit your bottom line."
By: A. W. Morgan
If you are doing, or planning on doing, business in the State of Georgia you may benefit from tax credits that can
be used to offset the cost of training and hiring employees. So before implementing the next training program or
deciding where to locate your business operations, you may want to explore the following incentive programs offered
by the State of Georgia:
Georgia Retraining Tax Credit:
The State of Georgia provides a tax credit to offset business investment expenses related to retraining employees
to use new equipment or new technology. Under this program, a business can receive a tax credit of 50% of their
direct training expense, up to $500 per full time employee per training program and $1,200 per employee per year.
Covered costs include (a) instructor fees and materials, (b) employee wages during training, (c) development of the
training programs, and (d) reasonable travel expenses. Executive management training, career development training
and personal enrichment training are not eligible. To be eligible, the employee must be (a) a Georgia resident, (b)
a first line employee or immediate supervisor (no executives, partners or managers above first line supervisor),
(c) continuously employed for at least 16 weeks, and (d) a full time employee (minimum 25 hours per week). The
retraining tax credits can be used to offset up to 50 percent of a company’s Georgia corporate income tax
liability. If the earned credit exceeds that limit, then the unused credit can be carried forward for up to 10
years and applied to future years’ tax liability.
For a comprehensive summary of the program guidelines and application information, please use the following link:
Georgia Retraining Tax Credit
Georgia Jobs Credit: The
State of Georgia provides a jobs credit of up to $4,000 in annual tax savings per job created for up to five years.
This credit is targeted toward businesses (or headquarters) engaged in the following seven strategic areas:
manufacturing; telecommunications; broadcasting; warehousing & distribution; research & development;
processing; and tourism. An exception is available for businesses, including retail, that do not fit these
strategic categories provided they create jobs in (i) certain specially designated counties, (ii) low development
census tract communities or (iii) certain military zones. The exact amount of the tax credit will vary depending on
where the jobs are created and the number of jobs created.
For more information on the availability of this credit, please use the following link to access a memorandum from
the Georgia Department of Community Affairs regarding the program guidelines in 2013: Georgia Jobs Credit
Military Zone Tax Credit: The State of
Georgia provides a jobs credit of up to $3,500 in annual tax savings per job created, provided the business creates
at least 2 jobs in a census tract community that is located adjacent to a military base and has pervasive poverty
of at least a 15 percent poverty rate. This credit is not limited to any industry and may be claimed by any
business of any nature. This tax credits may be applied against 100 percent of income tax liability and withholding
taxes of the business.
For more information about this credit and the specific locations to which it applies, please use the following
link: Military Zone Tax Credit
Opportunity Zone Tax Credit: The
State of Georgia provides a tax credit of up to $3,500 for the creation of jobs in communities designated by the
Georgia Department of Community Affairs as “Opportunity Zones.” This incentive is available to new or existing
businesses that create two or more jobs. The credit may be claimed for up to five years and can be taken against
the business’s Georgia income tax liability and payroll withholding tax.
Click on the following link to get more information about this program and for maps of where the opportunity zones
are located: Opportunity Zone Tax Credit
Georgia Tourism Development Tax
Credit: The State of Georgia is offering developers the opportunity to retain sales tax
representing up to 2.5 percent of the project development costs for approved new or expanding tourism projects
costing more than $1 million that attracts at least 25% of its visitors from out of state after the third year.
This credit may be claimed for a period of up to 10 years, subject to the maximum limitation of 2.5% of the project
Click on the following link to get more information about this program: Georgia Tourism Development Tax Credit
For clarification or updates or changes to the information provided above, please contact our office or contact the
Georgia Department of Community Development.
The Morgan Law Group is a full service corporate transactional law firm located in Gwinnett County Georgia near the
City of Lawrenceville. We provide legal transactional advisory and support services to individuals, business
owners, corporations, partnerships and government agencies, primarily in the areas of general corporate, business
law, contracts, business and asset sales and purchases, mergers and acquisitions, joint ventures, corporate finance
and real estate law.