Tax Credit Summaries

Which industries qualify?

 

Georgia Investment Tax Credit Summary

  • Manufacturing & Telecommunications only
  • Manufacturing – 2012 NAICS Code must be in Sectors 31-33
  • Telecommunications – 2012 NAICS Codes 517210, 517110, 517911, 517410, 517919 only
  • Must have operated in Georgia for the previous 3 years and filed all required Georgia tax returns

 

 

What investments qualify?

 

  •  Purchases of “qualified investment property” for a new facility or expanding an existing facility
  •  Includes land and land improvements, buildings and building improvements, machinery and equipment
  • used in the facility
  • Must spend at least $50,000 to qualify
  • What doesn’t qualify?
  • Items used for safety
  • Hand tools
  • Research and development expenditures
  • Materials used in the repair of existing buildings
  • Legal and consulting fees
  • Office space and office furniture
  • Computer hardware and/or software which does not control manufacturing machinery or equipment
  • Items and materials used in the repair, refurbishing, or reconditioning of machinery

 

 

Whats the credit worth?

  • Tier 1 – 5% of qualified investments
  • Tier 2 – 3% of qualified investments
  • Tier 3 & 4 – 1% of qualified investments
  • The credit allows for a 3 year look-back period for qualified investments
  • Unused credits have a 10 year carry-forward.

 

 

Example:

 

In 2012, a Spalding county (tier 1) manufacturer began a plant expansion project that it completed in 2014. The expansion included adding 10,000 square feet of production space, new lighting and air conditioning systems, as well as purchases of new manufacturing equipment, costing the company $500,000. The company has been in business in Georgia since 2001 and has filed all required state tax returns. The company qualifies for a $25,000 Investment Tax Credit ($500,000 x 5%) it can claim on its 2014 tax return.

Georgia Job Tax Credit Summary

Which industries qualify?

 

  • Manufacturing, Warehousing & Distribution, Processing, Telecommunications, Tourism, Broadcasting, Research & Development, Elderly & Disabled Services

 

 

Can a business still qualify if they are not in a qualifying industry?

 

  • Yes! Businesses of any kind located in an Opportunity Zone (OZ), Military Zone (MZ), Less Developed Census Tract (LDCT), or one of Georgia’s 40 Least Developed Counties (LDC) can qualify for the Job Tax Credit.

 

 

How many jobs have to be created?

 

  • Tier 1 – 2 jobs
  • Tier 2 – 10 jobs
  • Tier 3 – 15 jobs
  • Tier 4 – 25 jobs
  • OZ, MZ, LDCT, LDCs – 2 jobs

 

 

What are the job requirements?

 

  • New, permanent jobs (not temporary job assignments)
  • Full-time (35+ hours per week)
  • Average wage = $426 per week
  • Health insurance must be made available

 

 

What’s the credit worth?

 

  • Tier 1 & LDCT – $3,500 per job
  • OZ, MZ, LDCs – $3,500 per job
  • Tier 2 – $2,500 per job
  • Tier 3 – $1,250 per job
  • Tier 4 – $750 per job
  • As long as jobs are maintained, the credit can be claimed for 5 continuous years.
  • Unused credits have a 10 year carry-forward.

 

 

Who can apply Job Tax Credits against withholding taxes?

 

  • Tier 1, LDCT, OZ, MZ, and LDCs

 

 

Example:

 

A stock broker whose office is located in the Downtown Atlanta OZ hired 2 broker trainees in January of 2013. Both brokers work 40 hours a week, earn $600 a week, and have access to a cafeteria plan. The broker is eligible for a $7,000 Job Tax Credit in 2014 (2 jobs x $3,500). As long as the jobs are maintained, the broker can claim $7,000 a year for 5 years, for a total Job Tax Credit of $35,000. If the amount of the credit exceeds the broker’s tax liability for any taxable year, then the broker may elect to apply the credits against state withholding taxes.

Georgia Opportunity Zone Job Tax Credit Summary

Who qualifies?

 

  • Businesses of any kind located in one of Georgia’s Opportunity Zones potentially qualify for the Georgia Job Tax Credit

 

 

How do businesses qualify?

 

  • Create and maintain 2 net new jobs over the past year that meet the following requirements: New, permanent jobs (not temporary jobs)

 

 

What is the credit worth?

 

  • $3,500 per new job created and maintained
  • The credit can be used against 100% of Georgia income tax liability and withholding taxes
  • As long as jobs are maintained, the credit can be claimed for 5 continuous years
  • Unused credits can be carried forward for up to 10 years

 

 

Example:

 

A recycling company located in the Fulton County Industrial Opportunity Zone hired 2 new employees in January of 2013. Both employees work 40 hours a week, earn $600 a week, and have access to a cafeteria plan. The company is eligible for a $7,000 Job Tax Credit in 2014 (2 jobs x $3,500). As long as the jobs are maintained, the company can claim $7,000 a year for 5 years, for a total Job Tax Credit of $35,000. If the amount of the credit exceeds the company’s tax liability for any taxable year, then the company may elect to apply the credit against state withholding taxes.

Georgia Retraining Tax Credit Summary

Which employees qualify?

 

  • Georgia residents
  • Continuously employed for 16 weeks (training in the first 16 weeks of employment doesn’t qualify)
  • Full-time (at least 25+ hours per week)
  • Entry-level employees and their immediate supervisors

 

 

What training qualifies?

 

ALL training on New and/or Upgraded Equipment, Software, and Technology Platforms qualifies

 

Here are just a few examples:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

What is the credit worth?

 

  • Businesses can claim up to $1,250 per employee, per year
  • The credit allows for a 1 year look-back and a 10 year carry-forward

 

 

What is the credit worth?

 

  • Executives
  • Upper Management
  • Partners
  • Anyone above a supervisor of entry-level employees

 

 

Example:

 

A recycling company located in the Fulton County Industrial Opportunity Zone hired 2 new employees in January of 2013. Both employees work 40 hours a week, earn $600 a week, and have access to a cafeteria plan. The company is eligible for a $7,000 Job Tax Credit in 2014 (2 jobs x $3,500). As long as the jobs are maintained, the company can claim $7,000 a year for 5 years, for a total Job Tax Credit of $35,000. If the amount of the credit exceeds the company’s tax liability for any taxable year, then the company may elect to apply the credit against state withholding taxes.

Equipment

Software

Technology

  • Phone Systems
  • Digital X-ray Machines
  • iPads
  • I.T. Equipment (servers, etc.)
  • CNC Machines
  • MFPs (multi-function printers)
  • POS Systems
  • Bar Code Readers
  • RFID Scanners
  •  ERP, CRM & CIM
  • Practice Management
  • Payroll Software
  • Production Management
  • Scheduling Software
  • Project Management
  • CAD Software
  • Inventory Management
  • Purchasing Software
  • Any web-based systems
  • Trading platforms
  • Online time-tracking
  • Business apps
  • Learning management
  • Salesforce

WELLINGTON

INCENTIVES

GROUP

CONTACT INFORMATION

Wellington Incentives Group

116 East College St

P.O. Box 679 Griffin, GA 30224

Tel. (678)-603-1813

Fax. (770)-228-4433

© 2018 . Wellington Incentives Group. All Rights Reserved

Tax Credit Summaries

Georgia Investment Tax Credit Summary

Which industries qualify?

 

Georgia Investment Tax Credit Summary

  • Manufacturing & Telecommunications only
  • Manufacturing – 2012 NAICS Code must be in Sectors 31-33
  • Telecommunications – 2012 NAICS Codes 517210, 517110, 517911, 517410, 517919 only
  • Must have operated in Georgia for the previous 3 years and filed all required Georgia tax returns

 

 

What investments qualify?

 

  •  Purchases of “qualified investment property” for a new facility or expanding an existing facility
  •  Includes land and land improvements, buildings and building improvements, machinery and equipment
  • used in the facility
  • Must spend at least $50,000 to qualify
  • What doesn’t qualify?
  • Items used for safety
  • Hand tools
  • Research and development expenditures
  • Materials used in the repair of existing buildings
  • Legal and consulting fees
  • Office space and office furniture
  • Computer hardware and/or software which does not control manufacturing machinery or equipment
  • Items and materials used in the repair, refurbishing, or reconditioning of machinery

 

 

Whats the credit worth?

 

  • Tier 1 – 5% of qualified investments
  • Tier 2 – 3% of qualified investments
  • Tier 3 & 4 – 1% of qualified investments
  • The credit allows for a 3 year look-back period for qualified investments
  • Unused credits have a 10 year carry-forward.

 

 

Example:

 

In 2012, a Spalding county (tier 1) manufacturer began a plant expansion project that it completed in 2014. The expansion included adding 10,000 square feet of production space, new lighting and air conditioning systems, as well as purchases of new manufacturing equipment, costing the company $500,000. The company has been in business in Georgia since 2001 and has filed all required state tax returns. The company qualifies for a $25,000 Investment Tax Credit ($500,000 x 5%) it can claim on its 2014 tax return.

Georgia Job Tax Credit Summary

Which industries qualify?

 

  • Manufacturing, Warehousing & Distribution, Processing, Telecommunications, Tourism, Broadcasting, Research & Development, Elderly & Disabled Services

 

 

Can a business still qualify if they are not in a qualifying industry?

 

  • Yes! Businesses of any kind located in an Opportunity Zone (OZ), Military Zone (MZ), Less Developed Census Tract (LDCT), or one of Georgia’s 40 Least Developed Counties (LDC) can qualify for the Job Tax Credit.

 

 

How many jobs have to be created?

 

  • Tier 1 – 2 jobs
  • Tier 2 – 10 jobs
  • Tier 3 – 15 jobs
  • Tier 4 – 25 jobs
  • OZ, MZ, LDCT, LDCs – 2 jobs

 

 

What are the job requirements?

 

  • New, permanent jobs (not temporary job assignments)
  • Full-time (35+ hours per week)
  • Average wage = $426 per week
  • Health insurance must be made available

 

 

What’s the credit worth?

 

  • Tier 1 & LDCT – $3,500 per job
  • OZ, MZ, LDCs – $3,500 per job
  • Tier 2 – $2,500 per job
  • Tier 3 – $1,250 per job
  • Tier 4 – $750 per job
  • As long as jobs are maintained, the credit can be claimed for 5 continuous years.
  • Unused credits have a 10 year carry-forward.

 

 

Who can apply Job Tax Credits against withholding taxes?

 

  • Tier 1, LDCT, OZ, MZ, and LDCs

 

 

Example:

 

A stock broker whose office is located in the Downtown Atlanta OZ hired 2 broker trainees in January of 2013. Both brokers work 40 hours a week, earn $600 a week, and have access to a cafeteria plan. The broker is eligible for a $7,000 Job Tax Credit in 2014 (2 jobs x $3,500). As long as the jobs are maintained, the broker can claim $7,000 a year for 5 years, for a total Job Tax Credit of $35,000. If the amount of the credit exceeds the broker’s tax liability for any taxable year, then the broker may elect to apply the credits against state withholding taxes.

Georgia Opportunity Zone Job Tax Credit Summary

Who qualifies?

 

  • Businesses of any kind located in one of Georgia’s Opportunity Zones potentially qualify for the Georgia Job Tax Credit

 

 

How do businesses qualify?

 

  • Create and maintain 2 net new jobs over the past year that meet the following requirements: New, permanent jobs (not temporary jobs)

 

 

What is the credit worth?

 

  • $3,500 per new job created and maintained
  • The credit can be used against 100% of Georgia income tax liability and withholding taxes
  • As long as jobs are maintained, the credit can be claimed for 5 continuous years
  • Unused credits can be carried forward for up to 10 years

 

 

Example:

 

A recycling company located in the Fulton County Industrial Opportunity Zone hired 2 new employees in January of 2013. Both employees work 40 hours a week, earn $600 a week, and have access to a cafeteria plan. The company is eligible for a $7,000 Job Tax Credit in 2014 (2 jobs x $3,500). As long as the jobs are maintained, the company can claim $7,000 a year for 5 years, for a total Job Tax Credit of $35,000. If the amount of the credit exceeds the company’s tax liability for any taxable year, then the company may elect to apply the credit against state withholding taxes.

Georgia Retraining Tax Credit Summary

Which employees qualify?

 

  • Georgia residents
  • Continuously employed for 16 weeks (training in the first 16 weeks of employment doesn’t qualify)
  • Full-time (at least 25+ hours per week)
  • Entry-level employees and their immediate supervisors

 

 

What training qualifies?

 

ALL training on New and/or Upgraded Equipment, Software, and Technology Platforms qualifies

 

Here are just a few examples:

 

Equipment

  • Phone Systems
  • Digital X-ray Machines
  • iPads
  • I.T. Equipment (servers, etc.)
  • CNC Machines
  • MFPs (multi-function printers)
  • POS Systems
  • Bar Code Readers
  • RFID Scanners

 

Software

  •  ERP, CRM & CIM
  • Practice Management
  • Payroll Software
  • Production Management
  • Scheduling Software
  • Project Management
  • CAD Software
  • Inventory Management
  • Purchasing Software

 

Technology

  • Any web-based systems
  • Trading platforms
  • Online time-tracking
  • Business apps
  • Learning management
  • Salesforce

 

What is the credit worth?

 

  • Businesses can claim up to $1,250 per employee, per year
  • The credit allows for a 1 year look-back and a 10 year carry-forward

 

 

What is the credit worth?

 

  • Executives
  • Upper Management
  • Partners
  • Anyone above a supervisor of entry-level employees

 

 

Example:

 

A recycling company located in the Fulton County Industrial Opportunity Zone hired 2 new employees in January of 2013. Both employees work 40 hours a week, earn $600 a week, and have access to a cafeteria plan. The company is eligible for a $7,000 Job Tax Credit in 2014 (2 jobs x $3,500). As long as the jobs are maintained, the company can claim $7,000 a year for 5 years, for a total Job Tax Credit of $35,000. If the amount of the credit exceeds the company’s tax liability for any taxable year, then the company may elect to apply the credit against state withholding taxes.

CONTACT INFORMATION

Wellington Incentives Group

116 East College St

P.O. Box 679 Griffin, GA 30224

Tel. (678)-603-1813

Fax. (678)-692-8211

Email

SITE MAP

© 2018 . Wellington Incentives Group. All Rights Reserved