Comment below if you LOVE paying taxes.
I didn’t think so.
No one enjoys paying taxes. Especially, those who are finally on the “come-up”.
But taxes are important. The money you pay in taxes supports many resources in society such as parks, libraries, police, firefighters and many other government programs for the less fortunate.
However, for small businesses, taxes can stunt growth drastically. Instead of investing profits into making your products better, hiring staff or creating a better overall experience, your profits can get eaten away by up to 37% in taxes (for pass-through entities).
Thankfully, Georgia supports small business growth because they help keep the economy strong. This support comes in the form of tax credits. A tax credit is a sum of money that can be used to offset tax liability (money owed to the government). At LYFE Accounting, we recommend that you begin working on your tax plan before the tax season. You can personally organize this yourself or just hire someone to handle your small business tax preparation.
Georgia offers several tax credits/incentives for businesses and we have put together a list of the top 4 you need to know.
1. Job Tax Credit
On the top of the list is the Job Tax Credit. If your business is located in the opportunity zone (see visual below) or involved in strategic industries, such as manufacturing, warehousing & distribution, R&D, etc.. then you may qualify for the job tax credit. This can give businesses tax credits up to $4,000 for every new job created for 5 consecutive years. A tax break that is much needed for fast-growing companies.
2. Film, Television and Entertainment Tax Credits & Incentives
It’s official, Georgia is the new Hollywood of the South. Film and TV spending in Georgia hit over $9.5 billion last year. Our State Government intends for that trend to continue with a major boost for independent filmmakers. A new incentive will issue new producers between $5,000-$50,000 low-interest loans to film in Georgia. The goal for Georgia is to keep local creative talent in Atlanta and not lose them to places like California.
Major producers can still enjoy up to 20% tax credits for productions spending more than $500,000 (ensuring jobs are created locally). An additionally 10% will be granted to completed films that use Georgia’s promotional logo in their credits.
3. Work Opportunity Tax Credit
Georiga rewards companies that hire people who have faced barriers to employment. Businesses can receive up to $1,500 to $9,000 in tax credits if they employee people who fit certain criteria such as:
- Veterans
- Recipients of the Temporary Assistance for Needy Families (TANF) program
- Recipients of Supplemental Nutrition Assistance Program benefits (Food Stamps)
- Residents who live within Empowerment Zones or Rural Renewal Counties
- Ex-felons
- Recipients of Supplemental Security Income benefit
- Summer youth employee
4. Retraining Tax Credit
Technology is changing the landscape of business, and fast. Thanks to Georgia’s Retraining Tax Credit, businesses can afford to train their current employees on new software, or activities that produce better quality and productivity. The annual maximum for this credit is up to $1,250 per employee. Eligble expenses include the costs of instructors, reasonable travel expenses and even employee wages during retraining. For any existing business that is struggling to keep up technology advances then this is a big break financially. To qualify, your expenses must be approved by the Technical College System of Georgia.
To learn more about the job tax credits above and more then visit: http://www.georgia.org/competitive-advantages/tax-credits/
