Georgia Less Developed Census Tract Job Tax Credit Overview

The Georgia Less Developed Census Tract Job Tax Credit (Credit Type Code 103) is a special job tax credit for a business that meets the Georgia Business Enterprise NAICS requirements and adds at least 5 net new jobs in a designated location.  The company must offer group health insurance to all employees and meet other job tax credit requirements. The tax credit can be earned each year, up to five (5) years.  For this credit, the Department of Community Affairs (DCA) designates the eligible census tracts for the program.  Caution — these designated tracts can change each year, so be on the lookout in December when DCA releases the new tier rankings for the following year.
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 a Less Developed Census Tract 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.
  • 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.
Ask your clients about their expansion plans for existing and planned Georgia street address locations.  For example, locating a new call center in a Less Developed Census Tract may benefit your client this year (Click here for details).