Job Tax Credits: Colquitt County is a member of a joint development authority and can offer a $3,000 tax credit for each job created by a new or expanding business through the State of Georgia’s B.E.S.T. program. Qualified companies that create new, full-time jobs can earn this credit each year, for 5 years, provided the new jobs are maintained. The credit can be used to offset 100% of the company’s Georgia Corporate income tax liability and payroll tax liability in any taxable year, following the year in which the credits are earned. Any credits earned in excess of the company’s corporate income tax liabilities may be applied toward 100% of their payroll tax liability. Un-used credits may be carried forward and applied for up to ten years. The tax credit can amount to $1,500,000 based on 100 jobs.
The state also offers a Port Job Tax Credit Bonus. The port tax credit is a $1,250 per job bonus for taxpayers with large increases in shipments into and out of a Georgia port. The $1,250 is added to the job tax credit. The tax credit and port bonus can amount to $625,000 based on 100 jobs.
Retraining Tax Credit: The State of Georgia’s B.E.S.T. program provides a “Retraining Tax Credit” to companies that provide qualified retraining their employees, such as re-training for new equipment, new technology, or new operating systems. This credit can be used to offset up to 50% of the taxpayer’s total state income tax liability for a taxable year. Credits claimed but not used may be carried forward 10 years for eligible applicants. Tax credits equal 50% of the direct costs of approved retraining programs for full-time employees up to $500 per student are available. The credit can be taken every year that the company trains their employees for new jobs/skills. Any new employees can be trained under the Quick Start Program at no cost.
Quality Jobs Tax Credit – Companies that create at least 50 jobs in a 12 month period that each pay wages at least 110% of the county average are eligible to receive a tax credit of $2500-$5000 per job, per year, for up to five years, based on the scaled system below. New quality jobs created within seven years can qualify. Credits may be used to offset the company’s payroll withholding once all other tax liability has been exhausted, and may be carried forward for ten years. New jobs may count toward either the Jobs Tax Credit or the Quality Jobs Tax Credit (if applicable).
Average Wage Requirement (% of county average) Credit Value per New Quality Job
≥110% and <120% $2500
≥120% and <150% $3000
≥150% and <175% $4000
≥175% and <200% $4500
200% or greater $5000
Investment Tax Credits: The investment tax credit is offered as an alternate to the Job Tax Credit. The program allows a taxpayer that has operated an existing manufacturing facility in the state for the previous three years to obtain a credit against income tax liability. Colquitt County companies must invest $50,000 to receive a 3% credit. The credit is a percentage of the total value of all qualified property and cannot be more than 50% of the taxpayer’s total state income tax liability for that taxable year.
Child Care Credit: The State of Georgia’s B.E.S.T. program provides a “Child Care Tax Credit” for companies who sponsor qualified childcare for their employees. This credit can be used to offset up to 50% of the taxpayer’s total state income tax liability for a taxable year. Any credit claimed but not used in a taxable year may be carried forward for three years from the close of the taxable year in which the cost of the operation was incurred. Employers who purchase or build qualified child care facilities are eligible to receive credits equal to 100% of the cost of construction. Employers who provide or sponsor child care for employees are eligible to receive credits equal 75% of the employer’s direct cost.
Example: A taxpayer has direct child care costs of $400,000 in a given year and is eligible to receive a $300,000 tax credit [75% x $400,000]. Taxpayer invests $1 million for the construction of a childcare facility and is eligible for a credit in the first year of $100,000 [10% x $1 million]. Taxpayer can add the $300,000 tax credit and the $100,000 credit if the total credits do not exceed 50% of the tax liability in a given year.