Georgia adopts significant changes to job and investment tax credits

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June 2019

Overview

Enacted on May 6, H.B. 224 amends several Georgia tax credit programs.  Significant amendments include decreasing the number of quality jobs necessary to satisfy the Quality Jobs Tax Credit (QJTC) and modifying requirements for the Manufacturing Investment Tax Credit regarding qualifying manufacturing or telecommunications facilities located in a rural county to allow for excess credits to be applied against payroll withholding.

The takeaway

These amendments make for significant changes to the existing Job and Investment credits and further expand a taxpayer’s ability to claim credits against withholding or above the line.  

Taxpayers should consider the upcoming changes to job creation thresholds and their effective dates in decisions related to potential or future planning opportunities related to job growth and/or investment in Georgia and as it relates to claiming Job credits on their 2018 tax filings as they consider the two year rule for quality job credits.  

Finally, a major modification under this new bill is a taxpayer's ability to use the Manufacturing Investment Tax Credit against payroll withholding tax, previously the credit was only able to be applied against income tax.  Additionally, taxpayers with unused credits related to investment in manufacturing and telecommunication facilities should consider the potential to utilize these credits.

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Peter Michalowski

Peter Michalowski

State and Local Tax Leader, PwC US

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