Tax credits for Georgia restaurants and restaurant owners? That’s right. Georgia’s business-friendly tax environment extends even to the retail and restaurant industry. In this article, we discuss credits that every restaurant owner needs to know about.
1. Job Tax Credit
If you have created at least two jobs in any of the 40 least developed counties in the state, near a military base, or in a designated “Opportunity Zone,” then you may be eligible for a $3,500 tax credit per job created for each of 5 years that you maintain those jobs ($17,500 total credit per job). Even better, the tax credit can be applied towards employee payroll withholding (rather than having to be applied towards Georgia income tax).
Georgia taxpayers – including restaurants incorporated into legal entities that are subject to Georgia income tax or simply restaurant owners – can purchase tax credits at a discount in order to offset their own Georgia income tax liability. For example, an individual Georgia taxpayer that receives income from an owned restaurant may purchase $20,000 worth of Georgia income tax credits – able to offset $20,000 worth of Georgia tax liability – for $18,000. In this scenario, the taxpayer would instantly save $2,000 in Georgia tax.
There are several different so-called “transferrable” Georgia tax credits that can be purchased at a discount: (1) the Film and Entertainment tax credit; (2) the Low-Income Housing tax credit; and (3) the Conservation Easement tax credit. Each of these transferable credits comes with a different risk profile and a correlating discount amount. The credits with more risk (of being denied upon examination) provide for a higher discount amount.
3. Retraining Tax Credit
Have you ever had to train your staff on new or updated software? If so, you would qualify for a Georgia tax credit of up to $1,250 per employee trained. The credit is calculated by taking a percentage of the costs associated with those trainings (including the hourly pay).
If you are interested in learning more about ways your restaurant can save money with tax credits, sales tax exemptions, or other tax planning tips, contact Bennett Thrasher LLP at Stephen.Bradshaw@btcpa.net or by calling 678-302-1479.