2009 Job Tax Credit Changes
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I recently asked Dawn Sturbaum, the Senior Incentives Program Manager at the GA Department of Community Affairs (DCA), about the latest Job Tax Credit changes:
H.B. 439 was signed by the Governor on 5/4/09, is effective for tax years beginning 1/1/09 and after, and makes several changes to previous provisions:
- Provides for the job credit to be claimed in Year One for jobs created in Year One
- Reduced the "look-back" from three years to one year
- Adds another eligible industry classification for "services for the elderly and persons with disabilities" (see below)
- Adds the withholding credit option in Tiers 2-4 for pre-approved "competitive projects"
- Made minor industry code corrections
Services for the elderly and persons with disabilities will be defined under NAICS 624120, which means "providing nonresidential social assistance services to improve the quality of life for the elderly, persons diagnosed with mental retardation, or persons with disabilities. These establishments provide for the welfare of these of individuals in such areas as day care, nonmedical home care or homemaker services, social activities, group support, and companionship."
The DCA Job Tax Credit web page (click here) contains summary information and several documents that are helpful in understanding the credits. Dawn can be reached via email (click here) or phone at 404-679-1585.
And remember: Now is a good time to check with all of your clients who may have added jobs over the past several years, and especially those who may have added or are planning to add this year. The changes represent a big opportunity to boost your clients' income!
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Federal EHR Incentives vs. Georgia's RTC
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Many of your physician practice clients may have put off purchasing an Electronic Health Records (EHR) system because of the high cost and complexity involved, and now they are hearing that Uncle Sam is offering big $$ to help them pay for it. What should you tell them?
First, understand that the government is still working out the details, and (surprise!) nothing is set in stone yet. But here's what we know so far:
- no money available up front -- it is spread out over 4 or 5 years
- payments tied to Medicare or Medicaid, starting in 2011 or 2012
- maximum total reimbursement of $44,000 - $64,000
- penalties begin to phase in for non-adopters after a couple of years
- lots of hoops to jump through and details to be worked out
So stay tuned -- but in the mean time, the State of Georgia has a much better program for those practices implementing new technologies, including EHRs!
Georgia's Retraining Tax Credit can be utilized immediately and can earn up to $1,250 per eligible employee for each year activities occur. For most of your physician practice clients, that could likely add up to more than the stimulus package $$. So if your clients are not utilizing the credits, you could really help them out by identifying their potential benefits.
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About Us
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Alpharesults has assembled a team with the specialized knowledge and approach required to obtain Georgia income tax credits. We are not a public accounting firm. Rather, our services complement those of public accounting firms and do not create conflicted loyalties, because our professionals do not perform attestation work or other external audit functions.
We focus on small to medium-sized businesses and work exclusively in Georgia with a wide variety of in-state and out-of-state accounting firms. For more information on our services, follow this link.
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