New Tax Credit Alert: Georgia Work Opportunity Tax Credit
On April 6, 2026, the Georgia Assembly passed a new tax credit equal to the amount of federal work opportunity credit claimed by a taxpayer shall also be allowed as a state tax credit under House Bill 519. Upon signature by Governor Brian Kemp, it will become law.
What is the Georgia Work Opportunity Tax Credit
The Georgia WOTC allows taxpayers in Georgia to claim a state income tax credit equal to 100 percent of the Federal Work Opportunity Tax Credit they received. The credit is capped at $500.00 per eligible employee annually, and the total state credits claimed by all taxpayers can’t exceed $10 million per year. The credit begins for tax years on or after January 1, 2026, and is set to expire on December 31, 2030.
How to Claim the Credit
The Georgia WOTC is 100% tied to the Federal WOTC and employers must have a Certification issued by the Department of Labor to claim the state credit. In addition, if the Federal WOTC is not claimable for an employee then it’s not claimable in Georgia either. Here is our analysis of the impact of the program’s $10 million cap on claims based on the most current data available.
- In 2024, the state of Georgia’s WOTC department issued 41,437 Certifications.
- If all these Certifications received the $500 state credit, the amount will be $20,718,500.
- In our review of the Fiscal Note regarding this bill, the Fiscal Research Center did not include in their official note the 205+K pending applications that will be determined eventually.
- Depending on what percentage of the “pending” gets Certified, the credit allotment of $10 million will likely be claimed more quickly than the state is projecting.
- There is no guarantee that all Certified credits claimed will be honored.
- Companies may need to adjust the 2026 Tax Return Filings to ensure tax credits can be claimed before the allotment is reached.
What We’re Monitoring
Here is what we will be monitoring during the next 30 days:
- HB 519 is an enrolled bill awaiting Governor Kemp’s signature, with a mid-May deadline to sign the bill, or it automatically becomes law.
- How the $10 million credit cap will be allocated. If it’s on a first-come, first-served basis you need to plan now for filing your Georgia tax return in January 2027.
- Reauthorization of the Federal Work Opportunity Tax Credit. If it isn’t reauthorized, then the Georgia WOTC program may not be applicable for the 2026 tax year.
As more details are released and published, McMillian & Associates will provide updates and clear next steps for companies looking to claim this new tax credit.
Connect With Us
To learn more about how McMillian & Associates can help you get started with the Work Opportunity Tax Credit, connect with us. Now is a great time to begin participating in WOTC so you secure your future eligibility for the Federal tax credit and the new Georgia WOTC for Georgia employers.
Learn about WOTC here
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