Ports Activity Job Tax & Investment Tax Credits

Businesses or the headquarters of any such businesses engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development that have increased their port traffic tonnage through Georgia ports during the previous 12-month period by more than 10% over their 1997 base year port traffic, or by more than 10% over 75 net tons, five containers or 10 20-foot equivalent units (TEU’s) during the previous 12-month period are qualified for increased job tax credits or investment tax credits. NOTE: Base year port traffic must be at least 75 net tons, five containers, or 10 TEU’s. If not, the percentage increase in port traffic will be calculated using 75 net tons, five containers, or 10 TEU’s as the base. Companies must meet Business Expansion and Support Act (BEST) criteria for the county in which they are located.

The job tax and investment tax credits are as follows:

Tier 1 companies:  An additional $1,250 per job, or 5% investment tax credit, or 10% optional investment tax credit.

Tier 2 companies:  An additional $1,250 per job, or 5% investment tax credit, or 10% optional investment tax credit.

Tier 3 companies: An additional $1,250 per job, or 5% investment tax credit, or 10% optional investment tax credit.

Tier 4 companies: An additional $1,250 per job, or 5% investment tax credit, or 10% optional investment tax credit.

The additional job tax credit is limited to 50 percent of the taxpayer’s Georgia net income tax liability in the current year regardless of the tier in which the jobs are located. The investment tax credit taken under the port traffic provision is limited to 50 percent of the taxpayer’s net income tax liability. Any unused job or investment tax credit may be carried forward for ten years from the close of the taxable year in which the qualified jobs were established or the qualified property was placed in service. The optional investment tax credit taken under the port traffic provision shall be claimed for up to ten taxable years, provided the qualifying property remains in service throughout that period.