Georgia Opportunity Zone Job Tax Credit Overview

The Georgia Opportunity Zone Job Tax Credit (Credit Type Code 103) is a special job tax credit for any business adding at least 2 net new jobs in a designated location.  The company must offer group health insurance to all employees and meet other job tax credit requirements. In addition, the tax credit can be earned each year, up to five (5) years.  This credit is administered by the local government and the Department of Community Affairs (DCA).
Key Points to Remember:
  • The tax credit is $3,500 per net new job. For example, $175,000 tax credit for 10 new jobs in an Opportunity Zone over a 5 year period($3,500 X 10 X 5)
  • Right now you have three years of potential benefits to consider: last year, this year, and plans for next year.
  • Be on the lookout, because the designated Opportunity Zones may be introduced throughout the year.  For example, the Forest Park (Clayton County) zone was started April 25, 2017.
  • Benefit $$s go to any company or pass-through equity owners that pay Georgia income taxes. As an alternative, the tax credit can be used against Georgia payroll withholding taxes.
Remember to check your clients’ existing and planned Georgia street address locations for potential.  For example, locating a new branch at the right location could yield tremendous $$ benefits for your client (Click here for details).

Thanks!

JimSig

Nevada Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions, or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in Nevada, so we spoke with economic development professionals in Carson City.  Also see Nevada’s economic development site (click here).
Nevada has no corporate or personal income taxes, so they can’t offer income tax credits!  Otherwise, Nevada offers a meager selection of incentives for new and existing businesses.  CNBC ranked Nevada #39 in their 2017 America’s Top States for Business survey (Georgia was #2 in the same survey).  Nevada’s worst categories were Education (No. 50) and Technology/Innovation (No. 50).
Incentives include:
    • Sales and use tax abatement on qualified capital equipment purchases, with reductions in the rate to as low as 2%.
    • Modified Business Tax abatement of 50 percent of the 1.475% rate on quarterly wages exceeding $50,000
    • Personal Property Tax abatement not to exceed 50% over a maximum of 10 years.
    • Silver State Works Employee Hiring Incentive

Compared to Georgia, Nevada has:

    • 0.0% corporate and 0.0% personal income tax rates!
    • Much lower combined state and local tax burden
    • far narrower range of incentives
    • Pre-approval required for all incentives
To summarize, Nevada is far below average for business tax incentives,but if you like a dry desert climate, with lots of other attractions, you may hit the jackpot!

DaleSig … Continue reading

Georgia Job Tax Credit Overview

The Georgia Employer’s Jobs Tax Credit (Credit Type Code 103) is for adding net new jobs in Georgia. The minimum number of new jobs to qualify depends on the county where the company is located. For example, Clayton County’s minimum net new jobs to qualify in 2017 is two (2).  The company must offer group health insurance to all employees and meet other job tax credit requirements. In addition, the tax credit can be earned each year, up to five (5) years.
Key Points to Remember:
  • The tax credit is up to $4,000 per net new job. For example, $200,000 tax credit for 10 new jobs in Clayton County over a 5 year period ($4,000 X 10 X 5)
  • Right now you have three years of potential benefits to consider: last year, this year, and plans for next year.
  • Benefit $ to any company or pass-through equity owners that pay Georgia income taxes. In certain situations, the tax credit can be used against Georgia payroll withholding tax instead of Georgia income tax.  Administered by the Department of Community Affairs (DCA).
Don’t forget to discuss these activities with your client’s Payroll, HR, and Accounting  contacts.  For program details, click here.  Good luck!

JimSig

New Mexico Credits and Incentives

As we’ve mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions, or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
We were recently asked about credits and incentives in New Mexico, so we spoke with economic development professionals in Albuquerque.  Also see New Mexico’s economic development site, click here.
New Mexico offers a meager selection of credits and incentives for new and existing businesses.  CNBC ranked New Mexico #42 in their 2017 America’s Top States for Business survey (Georgia was #2 in the same survey).  New Mexico’s worst categories were Education (No. 45) and Business Friendliness (No. 45).
Incentives and Credits include:
Rural Jobs Tax Credit — Qualified employers locating in a rural area and approved for the program are eligible to receive a tax credit (6.25% of the first $16,000 in wages) for up to four consecutive years.
Manufacturers’ Investment Tax Credit equal to 5.125% of the value of qualified equipment and other property used in operations to be applied against compensating, gross receipts or withholding tax. Other limits and conditions apply.
Technology Jobs Tax Credit is available for 5% of qualified research expenditures (10% in rural areas). May be taken against gross receipts tax, compensating tax or state payroll tax, and may be carried forward. An additional 5% may be applied against state income tax if base payroll expenses are increased by at least $75,000 per $1,000,000 of expenditures claimed.
Other Incentives — The Job Training Investment Program (JTIP) provides companies with reimbursement for training costs associated for newly created jobs. Reimbursements typically range from 50%-80% of employee wages and travel expenses, depending on several factors.
Compared to Georgia, New Mexico has:
  • Comparable corporate and lower personal income tax rates.
  • Comparable combined state and local tax burden
  • A more narrow range of incentives.
To summarize, New Mexico is below average for business tax incentives,but if you like a dry desert climate with very cool mountains, you’re in luck!

DaleSig