Georgia announces taxpayer-favorable changes to Job Tax Credit

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January 2021

Overview

Georgia has made taxpayer-favorable changes to the state’s Job Tax Credit, including allowing taxpayers to use 2019 headcount for their 2020 and 2021 credit requirements and allowing certain telecommuting employees to qualify toward the credit. 

Additionally, manufacturers that qualify and claim the Job Tax Credit are allowed an additional credit for jobs associated with the manufacturing of personal protective equipment (PPE).

A taxpayer’s Job Tax Credit varies based on the ‘tier’ designation given to a county where the jobs are created. The 2021 county tier designations were updated on January 4. Taxpayers have the opportunity to preserve more beneficial past designations by applying for such treatment by March 31, 2021.

The takeaway

Taxpayers should consider the 2019 employee headcount election and the telecommuter employee relief for tax years beginning in 2020 and 2021. These benefits can have a significant impact on taxpayers affected by the severe negative economic effects of COVID-19. The additional PPE manufacturers jobs tax credit can further expand a taxpayer’s ability to offset its income and withholding taxes for the year. 

The option to preserve beneficial tier designations in 2021 could increase the ability of taxpayers to generate credits in current and future tax years. This frequently missed item can have a significant impact on the Jobs Tax Credit.

Contact us

Peter Michalowski

State and Local Tax Leader, PwC US

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