04.30.15 |
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Take Advantage of the Georgia Quality Jobs Credit

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What Georgia’s Quality Jobs Credit Could Mean for Your Business

Employment is one of the most influential factors that drive the economy.  Whether it’s at the federal, state or municipal level, economic success is inextricably tied to employment rates.

Therefore, it’s no surprise that state governments want to make an effort to incentivize hiring and employment retention programs.

Tax credits are one effective way to promote job growth.  They can help companies offset hiring costs, which make it easier for companies to create jobs.

Governments and municipalities are also focused on providing incentives for companies to increase the number of higher-paying jobs.

The Georgia Quality Jobs Credit is one such tax incentive.  By promoting quality, high-paying jobs, the state can both stimulate the economy through job growth and help raise the average income in counties with high poverty rates or low incomes.

This win-win scenario is also beneficial for local businesses because it makes it easier for employers to expand by investing in job creation and/or recruiting more qualified or more talented employees.

What is a ‘Quality Job?’

The state of Georgia defines the term “quality job” as using the following criteria1:

  • If the regular work week consists of 30 hours or more
  • “Is not a job that is or was already located in Georgia, regardless of which taxpayer the individual performed services for1”;
  • The job must pay at or above 110 percent of the county average wage. For more details on that requirement, please click here.

Eligibility

Here are the key eligibility requirements for a company to qualify for the Quality Jobs Credit2:

  • New quality jobs must be created within seven years of initial eligibility in order to qualify for the credit
  • If new jobs do not qualify for Quality Job Tax Credits, they may still be eligible for Georgia’s Job Tax Credit if they meet certain requirements
  • According to the state’s website, a Quality Job Tax Credit needs to be claimed within the earlier of the following time periods: “a) one year from the date the original return is filed; or, b) one year from the date the return is due (including any approved extension)2
  • In order to claim the Quality Jobs Tax Credit, your business must file the Georgia Department of Revenue Form IT-QJ with the income tax return3Click here to download the form

 

How Much Credit Your Company Can Receive

This table is posted on the state of Georgia’s website. It shows the amount of the credit that can be received for each quality job based on the percentage of the average county wage that the job pays:

 

 Average Wage Requirement
(% Of County Average)
Tax Credit Value Per New Quality Job
 ≥110% and <120% $2,500
 ≥120% and <150% $3,000
 ≥150% and <175% $4,000
 ≥175% and <200% $4,500
 200% or greater $5,000

County wage averages for Georgia can be found here4.
 

Get Started

Once you have confirmed that the “quality jobs” your company has added meet the eligibility requirements for the Quality Jobs Credit, you must submit an application. 

Additional forms may be required (depending on how your company is planning to apply for the credits). Since this can be a complex undertaking, it may be smart to seek the help of a tax services provider or financial services adviser to get started.

 

Learn More About ADP SmartCompliance® Tax Credits

 

Sources

1http://rules.sos.state.ga.us/docs/560/7/8/51.pdf

2http://www.georgia.org/competitive-advantages/tax-credits/quality-jobs/

3http://dor.georgia.gov/sites/dor.georgia.gov/files/related_files/document/TSD_Quality_Jobs_Tax_Credit_Application_ITQJ_9_9_13.pdf

4http://explorer.dol.state.ga.us/mis/Current/ewcurrent.pdf


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