Economic Development : Business Advantages & Incentives – Job Tax Credits

On August 20, 2012, Commissioner Gretchen Corbin of the Georgia Department of Community Affairs (DCA) awarded an Opportunity Zone designation to the City of East Point (view map here). This designation means that any business, existing or new, within the Opportunity Zone which creates at least 2 new jobs on or after January 1, 2012, is eligible for a Job Tax Credit of $3,500.00 per job. The credit may be applied against Georgia income tax liability and state payroll withholding for 5 years, beginning with the tax year in which the new jobs were created. Opportunity Zone Interactive Map

Process:
  1. Create at least the minimum number of jobs to become eligible.
    For an overview of the eligibility requirements and claims process, please read this Program Overview.
  2. Complete part one of the Opportunity Zone Certification and send a signed copy to Jennifer Fine (contact info below). After review by the Georgia DCA, the requesting business and the East Point OZ coordinator will each receive approved copies of the certification.
  3. Complete Form IT-CA (2012) to determine the amount of Job Tax Credit that may be claimed. The credit must first be applied against your corporate income tax liability. Any excess credit may be carried forward to future tax years or applied against your Georgia Withholding Tax liability.
  4. To claim credit against withholding, file Form IT-WH with the Department of Revenue at least 30 days prior to filing the Georgia Income Tax Return on which the credit will be claimed.
  5. File the Georgia Income Tax Return by the due date (or extended due date) along with a completed Form IT-CA (2009) and a copy of the accepted Opportunity Zone Certification to claim the Job Tax Credit for the Opportunity Zone.
  6. The Department of Revenue will send a letter to the business within 90 days of the date the Georgia Income Tax Return was filed stating the amount of credit available to claim against withholding taxes and when the business may begin claiming the credit.

The City of East Point has LDCT’s which qualifies businesses that are located in those districts eligible to apply for Tier 1 level job tax credits ($3500-min. 2 jobs).

East Point is located in a Tier 3 County which qualifies businesses to apply for Tier 3 level job tax credits ($1750 – minimum of 15 eligible jobs created) offered by the State.