Frazier Deeter CPAs and Advisors


1230 Peachtree Street NE

Suite 1500

Atlanta, GA 30309

main 404.253.7500


3480 Preston Ridge Road

Suite 375

Alpharetta, GA 30005

main 404.573.4200


401 Commerce Street

Suite 920

Nashville, TN 37219

main 615.259.7600


2801 W. Busch Boulevard

Tampa, FL 33618


No Double-Dipping on Georgia Jobs Credit

05.03.2016 A Georgia corporation had an enviable problem several years ago when it had to decide between two great jobs tax credits. It chose one, but then reconsidered and later wanted to choose the other, using the same jobs. The rules for the credits, however, do not allow double-dipping.

The company first claimed the Georgia Jobs Tax Credit but was unable to use it due to limited tax liabilities. So, the taxpayer carried that credit forward. Then, the corporation determined that it could use a different credit, the Georgia Quality Jobs Credit, a couple of years later, so it attempted to go back and amend its previous returns to claim the new credit based on the same jobs used to claim the original credit. The basic difference between the two credits is that the Georgia Jobs Tax Credit allows a write-off for creating jobs in certain business sectors in underdeveloped areas of the State, while the Quality Jobs Tax Credit requires that the jobs created pay higher-than-average wages.

The Georgia Department of Revenue, in Letter Ruling No. IT-2015-02, said don’t bother. Because the taxpayer had used the same set of jobs to first claim the regular Georgia Jobs Tax Credit, it could not go back and use those same jobs to newly qualify for the Georgia Quality Jobs Credit. A taxpayer can claim both credits at the same time if they meet all requirements for both credits. However, the credits cannot be based on the same set of jobs.

As the ruling notes, a taxpayer has to elect which credit will be used for the jobs when the taxpayer first claims it. That election cannot later be changed. No jobs that were included when the Georgia Jobs Tax Credit was claimed can be included in any calculations for the Quality Jobs Tax Credit, as the taxpayer learned.

Georgia Jobs Tax Credit

The Georgia Jobs Tax Credit provides between $1,250 and $4,000 in annual tax savings per job for up to five years. It is available to businesses in seven different sectors, including:

• Manufacturing
• Telecommunications
• Broadcasting
• Warehousing & distribution
• Research & development
• Processing
• Tourism

The exact value of the job credits depends on two factors – how many jobs are created, and where. Businesses are allowed the credit if jobs are located in one of the 40 least developed counties of the state. A minimum number of jobs must be created per qualified business enterprise. This minimum value varies based on the economic level of the region. Unused credits can be carried forward for 10 years.

Georgia Quality Jobs Credit

The Quality Jobs Tax Credit is another tax credit allowed for jobs that pay higher-than-average wages. The credit ranges from $2,500 to $5,000 per job depending on the value of the job created. The credit is for employers creating at least 50 new high-wage jobs or relocating at least 50 high-wage jobs into the state in a 12-month period. The jobs have to pay at least 10 percent higher than the county average for wages. Unused credits may be carried forward for 10 years.




CPA based investment management
Frazier & Deeter, a Top 100 Largest CPA Firm in the United States, has accountants and business advisors who offer a full range of assurance and advisory services in the areas of audit, tax and management consulting and personal tax planning and compliance. As a leading accounting firm, we serve clients across the nation and internationally that include closely-held companies, SEC companies, and nonprofit entities. Headquartered in Atlanta, Georgia, we have been recognized as the 56th largest accounting firm in the nation, as one of the Top 25 Best Managed CPA firms in the country, and one of the Best Accounting Firms to Work for in the U.S.
Secure File Transfer
best firm to work for IPA Top 100 FirmsIPA Best of the Best 2015Top100Accountingfirm
©2016 Frazier & Deeter, LLC. All Rights Reserved.