Compilation of Rules and Regulations of the State of Georgia › Department 110 - RULES OF GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS › Chapter 110-9 - JOB TAX CREDIT PROGRAM › Subject 110-9-1 - JOB TAX CREDIT PROGRAM REGULATIONS › Rule 110-9-1-.03 - Job Tax Credit

Current through Rules and Regulations filed through June 27, 2024
(1)
Eligibility for Job Tax Credit for
				New Jobs Created in Year One.
Provided that all the provisions of these
				regulations are met, business enterprises in counties currently designated as
				tier 1 counties or less developed census tract areas shall be allowed a job tax
				credit for taxes imposed under O.C.G.A. §
									48-7-2 equal to $3,500 annually,
				business enterprises in counties currently designated as tier 2 counties shall
				be allowed a job tax credit for taxes imposed under O.C.G.A. §
									48-7-2 equal to $2,500 annually,
				business enterprises in counties designated as tier 3 counties shall be allowed
				a job tax credit for taxes imposed under O.C.G.A. §
									48-7-2 equal to $1,250 annually,
				and business enterprises in counties currently designated as tier 4 counties
				shall be allowed a job tax credit for taxes imposed under O.C.G.A. §
									48-7-2 equal to $750 annually. The
				credit amount allowed for each tier shall apply to each new full-time employee
				job created for five (5) years, beginning with years one through five upon the
				creation of the job.
(a) A business
				enterprise will receive job tax credits in year one for new full-time employee
				jobs created in year one. Similarly, a business enterprise will receive job tax
				credits in year two for new full-time employee jobs created in year one and
				maintained in year two. This method of calculating job tax credits also applies
				in years three through five. The number of new full-time employee jobs created
				and maintained during years one through five will be calculated in the same
				manner as described in Department Rule
				110-9-1-.03(1)(c),
				i.e., using a comparison of average monthly employment from taxable year to
				taxable year.
(b) Only those
				business enterprises that increase employment by two or more in a tier 1
				county, a Military Zone or an Opportunity Zone shall be eligible for the
				credit. Only those business enterprises that increase employment by five or
				more in a less developed census tract, not including a Military Zone or an
				Opportunity Zone, shall be eligible for the credit. Only those business
				enterprises that increase employment by 10 or more in a tier 2 county shall be
				eligible for the credit. Only those business enterprises that increase
				employment by 15 or more in a tier 3 county shall be eligible for the credit.
				Only those business enterprises that increase employment by 25 or more in a
				tier 4 county shall be eligible for the credit. The credit shall not be allowed
				during a year if the net employment increase falls below the number required in
				such tier. Any credit received for years prior to the year in which the net
				employment increase falls below the number required in such tier shall not be
				affected.
(c) The number of new
				full-time employee jobs increase shall be determined by comparing the monthly
				average number of full-time employees subject to Georgia income tax withholding
				for the taxable year with the corresponding number of the prior taxable year.
				The monthly average number of new full-time employee jobs in a taxable year
				shall be determined by the following method:
1) for each month of the taxable year, count
				the total number of full-time employees of the business enterprise that are
				subject to Georgia income tax withholding as of the last payroll period of the
				month or as of the payroll period during each month used for the purpose of
				reports to the Georgia Department of Labor;
2) add the monthly totals of full-time
				employees; and
3) divide the result
				by the number of months the business enterprise was in operation during the
				taxable year. Note that only an initial start-up year may be calculated at less
				than twelve months - see Department Rule
				110-9-1-.03(6) for
				further clarification. Transferred jobs and replacement jobs may not be
				included in the monthly totals.
(d) For business enterprises that made the
				election authorized by O.C.G.A.
				48-7-40.23 in 2001 to use a
				calendar year for reporting the job tax credit, or for those businesses which
				had a change in the taxable period after initially filing for the job tax
				credit, then those businesses will continue to utilize the same reporting
				period as previously used in claiming the job tax credit regardless of the
				actual period covered by the tax return. The calculation of the credit will be
				in the same manner described in Department Rule
				110-9-1-.03(1)(c)
				above, but will use the applicable twelve-month period for the job tax credit
				calculation in lieu of the taxable year. See Department Rule
				110-9-1-.03(6) for
				further clarification on the twelve-month period.
(e) Job tax credits for new full-time
				employee jobs created in year one and maintained during a portion of or all of
				the following four years will not be affected even if the county/census tract
				area, during years two through five, is no longer designated as less developed
				or is reclassified.