The Department of Community Affairs (DCA) announcement: McIntosh County, Georgia qualifies for Tier 1 Job Tax Credit Program for 2017
Annually the Georgia DCA ranks all 159 counties based on certain economic factors and divides the counties into a tier system.
Darien, GA, January 3, 2017: McIntosh County now qualifies as a Tier 1 county and provides much better tax credits that allows McIntosh to be much more competitive with other communities and other states. In 2016, McIntosh was a Tier 3 county which required a minimum of 15 jobs to be eligible for a $1,750 per job tax credit and now being designated a Tier 1, the minimum jobs drops to 2 and the tax credit rises to $4,000 per job for up to 5-years These tax credits are available to businesses (or their headquarters) in seven strategic sectors:
- Warehousing & distribution
- Research & development
HOW THE JOB TAX CREDIT WORKS:
Suppose a manufacturer creates 50 jobs in McIntosh, a Tier 1 county. The value of this job credit would be $4,000 per job. Therefore, the company would receive $1 million in tax credits over a five-year period – bringing a $1 million reduction in Georgia income tax:
50 jobs x $4,000 credit per job = $200,000 x 5 years = $1 million
Job credits in Tier 1 counties can be used against 100 percent of income tax liability. (In Tier 1 counties only, the excess over 100 percent is credited to Georgia withholding tax, with a limitation of $3,500 per job.). The job credits may be carried forward for up to 10 years.
According to Wally Orrel, McIntosh County Industrial Development Authority President and CEO, this will allow our county to be more competitive with other rural counties in landing future businesses in our state and on the coast. Our state project managers and utility partners are going excited about this change and we look forward to working together to bring jobs and investment to Georgia.