Georgia Job Tax Credit (JTC) and Georgia Quality Jobs Tax Credit (QJTC)

The Georgia Job Tax Credit is a state tax credit available to businesses that create new full-time jobs in Georgia. It is one of Georgia’s primary economic development incentives and is administered under O.C.G.A. § 48-7-40.

Program at a Glance

Credit amount	$1,250 to $5,000 per new full-time job, per year
Duration	Up to 5 years, renewable annually if jobs are maintained
Applies against	Georgia state income tax (and payroll withholding in designated zones)
Who administers	Georgia Department of Economic Development / Georgia DOR
Statute	O.C.G.A. § 48-7-40 (JTC); O.C.G.A. § 48-7-40.17 (QJTC)

Eligibility

Georgia’s Job Tax Credit is generally available to qualifying businesses that create and maintain the required number of new full-time Georgia jobs, with job thresholds and credit amounts varying by the location of the jobs. Eligible positions generally must be W-2 employees subject to Georgia withholding, and employers must make health insurance coverage available to employees filling the new full-time positions, although the company is not required to pay for that coverage unless it provides the same benefit to existing employees. Georgia’s Quality Jobs Tax Credit is available to taxpayers that create at least 10 new quality jobs in Georgia, generally requiring each job to work 35 or more hours per week and pay at least 110% of the applicable county average wage. Companies typically cannot claim both credits for the same jobs. 

The business must be an existing Georgia business creating new jobs, a company expanding into Georgia, or a newly established Georgia business.

Credit Amount by County Tier for Job Tax Credits

Georgia counties are ranked annually into four tiers based on economic development indicators (unemployment rate, per capita income, and poverty rate). Tier 1 counties are the least economically developed and receive the highest credit rates.

Tier 1 (least developed)	$4,000* per job per year (base); includes jobs created in Military Zones, Opportunity Zones, or Less Developed Census Tracts
Tier 2	$3,000* per job per year
Tier 3	$1,750* per job per year
Tier 4 (most developed)	$1,250* per job per year

*Includes $500 bonus for Joint Development Authority (JDA). Most counties are part of a multi-county JDA.

Qualifying Job Requirements

• Must be a net new full-time position (not a transfer of another job already located in Georgia)
• Must meet the minimum wage threshold of $680 per week for the 2025 tax year (updated annually)
• Must include health insurance benefits offered, but not paid for, by the employer
• Minimum number of new jobs required varies by county tier and industry (2 new jobs for Tier 1 counties and special zones and 25 for jobs in Tier 4 counties)

Quality Jobs Tax Credit

The Quality Jobs Tax Credit (O.C.G.A. § 48-7-40.17) is a companion program for businesses creating jobs that pay at least 110% of the county average wage. It provides enhanced per-job credits and can be used in addition to or instead of the standard JTC.

• Credit of $2,500 to $5,000 per qualifying job per year, depending on wage levels compared to the county average wages 
• Minimum of 10 new qualifying jobs required (varies by county – more rural counties have lower requirements than urban counties)
• No industry restriction and available to businesses in any sector
• Can be used to offset up to 100% of the taxpayer’s Georgia income tax liability, and any excess credit may be applied against the taxpayer’s Georgia payroll withholding obligations, subject to applicable statutory limits and filing requirements
• Can be combined with other Georgia credits in certain circumstances

How to Claim

Businesses must file the appropriate Georgia income tax form (Form IT-CA) documenting new qualifying jobs. Credits that exceed the current year’s tax liability can be carried forward for up to 5 years. In Tier 1 counties and special zones, excess credits may be applied against the employer’s payroll withholding tax liability.

Key Notes

• Jobs must be maintained to continue receiving the credit in renewal years
• County tier designations are reassigned annually meaning a county’s tier can change year to year
• Base employment is calculated using a rolling monthly average; businesses must exceed this baseline to qualify for new credits

Schedule a time to connect and take a closer look HERE.