This argues for the use of a labor cost subsidy. Second, firms locating or expanding employment in Georgia can take either a job tax credit or an investment tax credit, but not both. The amounts of the credits are larger and eligibility criteria are weaker in the state's least developed counties, which is desirable. Economic development incentives are costly per job created. Economic research shows that there are marked differences in the quality of jobs across different industries as well as within given industries for workers with similar education, age, and other characteristics.
Different industries have widely different employment and multiplier effects.
To maximize the benefits of incentives relative to their costs, it is imperative that the state more finely targets its incentives. Some targeting is already done. There is no statewide property tax abatement program in Georgia. However, local governments in Georgia frequently employ property tax reductions and abatements to attract employers to their communities. But there are major concerns with these incentives.