Job Incentives and Tax Credit Programs

The Georgia Chamber of Commerce supports improving Georgia’s economic competitiveness by modifying job incentives and tax credit programs. The Chamber has designated HB 868 as a scorecard issue for 2012.

• Georgia enjoys a strong foundation of businesses across a wide variety of industry sectors but there is opportunity for growth.
• Incentive programs should be modernized and expanded so that a broader spectrum of new and existing businesses can benefit.

Georgia Jobs Tax Credits

• Companies and their headquarters that are engaged in strategic industries such as manufacturing, warehousing and distribution, processing, research and development, telecommunications and tourism may qualify for Georgia’s Job Tax Credit Program.
• HB 868 would expand eligible industries to include biomedical manufacturing and alternative energy products.

Quality Jobs Tax Credit

• In 2009, the legislature created the Quality Jobs Tax Credit, allowing companies to receive tax credits ranging from $2,500 to $5,000 if they create jobs that pay wages that are at least 10 percent higher than the average county wage.
• HB 868 would expand the credit for use by military contractors.

Research and Development Tax Credit

• Currently, 10 percent of a company’s increased qualified research and development expense over its gross receipts may be claimed as a tax credit.
• However, only emerging companies during their first five years of existence can apply the credit to offset their payroll withholding once all other tax liability has been exhausted
• HB 868 would allowall companies that qualify for the credit to use the payroll withholding provision. 

Port Tax Credit Bonus

• The Port Tax Credit Bonus is available to taxpayers who increase imports or exports through a Georgia port by 10 percent over the previous or base year.
• This “port bonus” is an additional $1,250 per job credit or an increase in the investment tax credit to the equivalent of a Tier 1 location.
• HB 868 would allowthe Port Tax Credit Bonus to be used in Less Developed Census Tracts, Military Zones and Opportunity Zones.
• This provision would encourage and incentivize port activity by companies in some of the most economically challenged areas of the state.

Related Information: Download the PDF of this document