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Georgia Revamps Quality Jobs Tax Credit Program

Georgia Revamps Quality Jobs Tax Credit Program

With the enactment of House Bill 265, the State of Georgia has passed two significant changes to its Quality Jobs Tax Credit program, effective with tax years beginning on or after January 1, 2017. These changes are: Increasing the hiring period for meeting the job increase threshold, and Implementing a new investment requirement in order to be eligible for subsequent job creation periods. Prior to HB 265, Georgia law required that a taxpayer must create at least 50 new quality jobs within one year of when the employer first began withholding taxes in Georgia in order to be eligible for the Quality Jobs Tax Credit.1 Effective for tax years beginning on or after January 1, 2017, a taxpayer will now have two years in order to meet the 50 quality jobs requirement if the taxpayer first withholds taxes in Georgia after January 1, 2017. HB 265 also enacted a new investment requirement in order for taxpayers to be eligible for the extended two year job creation periods. Effective for...

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2016 Tax Credits and Incentives Following Year-End Legislation

2016 Tax Credits and Incentives Following Year-End Legislation

U.S.-based businesses could have a major opportunity to benefit from tax credits following year-end legislation. The Omnibus Spending Bill H.R. 2029 and the PATH Act (Protecting Americans from Tax Hikes Act of 2015), signed into law at the end of 2015, include the extension of more than 50 tax credits and incentive programs that expired on Dec. 31, 2014. This includes an array of federal tax credits that offer incentives to employers who implement various hiring, training and investing practices. Work Opportunity Tax Credit (WOTC) – Extended for five years through 2019, WOTC is designed to encourage employers to hire and retain individuals from various target groups, including veterans of war, welfare recipients and the newly added “long-term unemployed” category, among others. Through this program, businesses can qualify for a tax credit of up to $9,600 per eligible employee for the first year of employment. Federal Empowerment Zone Employment Credit – Businesses that hire employees who live and work in an empowerment zone, which are designated distressed urban and...

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