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Update: Georgia Expands "Taxpayer" Definition for Quality Jobs Tax Credit

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Boost Team

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Georgia

Georgia Governor Nathan Deal has signed into law H.B. 922,1 which adds a definition of "taxpayer" to the Georgia Quality Jobs Credit statute2. The definition reads as follows:

"Taxpayer" means any person required by law to file a return or to pay taxes, except that any taxpayer may elect to consider the jobs within its disregarded entities, as defined in the Internal Revenue Code, for purposes of calculating the number of new quality jobs created by the taxpayer under this Code section.3

Prior to enactment of H.B. 922, an employer whose corporate structure included multiple LLCs treated as disregarded entities couldn't count job creation in those disregarded entities towards the 50-job threshold for the Georgia Quality Jobs Credit. Such an employer would have created the requisite 50 jobs within one legal entity. The enactment of H.B. 922 alleviates that burden.


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The definition of "taxpayer" under H.B. 922 is applicable to tax years beginning on or after January 1, 2016.4

1 H.B. 922 can be found at http://www.legis.ga.gov/Legislation/en-US/display/20152016/HB/922.

2 Georgia Quality Jobs Credit governing statute can be found at O.C.G.A Code Section 48-7-40.17.

3 H.B. 922, Section 1 adds new Section 48-7-40.17(a)(3).

4 H.B. 922, Section 2.