Georgia State Tax Credit Legislative Changes

calendar iconJuly 24, 2020

The Governor of Georgia signed into law House Bill 846, which provides modifications to existing Georgia tax credit programs and a new state tax credit beginning in 2020. The bill also includes various provisions that affect business income and net worth taxes. Highlighted below are changes impacting Georgia business tax credits.

  • Businesses may be eligible for a new job tax credit of $1,250 per job for qualifying new jobs engaged in the manufacture of personal protective equipment (“PPE”) in the state in response to COVID-19. PPE includes protective clothing, helmets, gloves, face shields, goggles, face masks, hand sanitizer, respirators or other equipment designed to prevent the spread of COVID-19. The PPE manufacturer must adhere to the tax law rules of GA Code sections 48-7-40 or 48-7-40.1 as currently in effect.
  • In light of COVID-19 and the significant impact on maintaining jobs, favorable modifications were made to Georgia jobs tax credits for tax years beginning in 2020 and 2021. Businesses now have the option of utilizing the same full-time jobs claimed for the credit in 2019, or computing actual jobs for both the 2020 and 2021 years for purposes of calculating the jobs tax credit. This modification will result in many businesses continuing to qualify for the job tax credit in the coming years.

Companies interested in determining the impact of these provisions on their business, or those wanting to take advantage of a complimentary scoping to identify all applicable state credits and incentives, should contact Anne Yancey with the State Credits and Incentives Team.

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