Georgia employers offered tax credit for hiring parolees

Employers in Georgia have an opportunity to take advantage of a temporary tax credit if they hire individuals who have recently been granted parole.

According to the state law, O.C.G.A. Section 48-7-40.31, employers who hire qualified parolees in a full-time job for at least 40 weeks during a 12-month period are eligible for an income tax credit of $2,500 for each qualified parolee, with a $50,000 annual limit per employer.

The tax credit, which can only be used once per individual hired, will be available to employers for three years – from Jan. 1, 2017, to Jan. 1, 2020. The law states that the tax credit cannot exceed the employer’s income liability, but any unused portion of the tax credit can be carried forward and applied to the employer’s tax liability for the following three years.

When the employer is a pass-through entity and has no income tax liability of its own, the tax credit will pass to its individual members, shareholders or partners based on their year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available. The credit will then pass through to its individual shareholders, members or partners to be applied against the tax liability on their income tax returns.

Please contact us if you would like more information about this employer tax credit.