IT-QPJ: Qualified Parolee Jobs Tax Credit (Revision 2016-11)

Who files this form

Form IT-QPJ is for employers claiming the Qualified Parolee Jobs Tax Credit. The form describes a credit for the period beginning January 1, 2017, and before January 1, 2020.

To qualify, the employer must conduct business in Georgia and be registered and authorized to use E-Verify or its successor federal employment verification system.

The employee must:

• Have been granted parole under Code Section 42-9-45 within the 12 months before being hired.
• Work in a full-time job in Georgia for at least 40 weeks during a 12-month period within the stated credit period.

The job must have a regular workweek of at least 30 hours, no predetermined end date, and pay at least the average hourly wage of Georgia’s lowest-average-wage county, as reported in the most recently available annual Georgia Employment and Wages Averages Report.

What you'll need

Attach a list of qualified parolee employees showing each employee’s:

• Name.
• Social Security number.
• Date the 40-week employment requirement was met.
• Wages paid during the taxable year.

You will also need the employer’s name, address, FEIN or Social Security number, business type, tax year end, and contact person’s name and telephone number. The calculation asks for any prior-year credit carryforward and the current year’s Georgia income tax liability.

How to file

Complete the employer and contact information, then attach the required employee list.

For the credit calculation:

1. Enter the number of qualified parolees in full-time jobs on line 1.
2. Multiply that number by $2,500 on line 3.
3. Enter the lesser of line 3 or the $50,000 annual maximum on line 5.
4. Enter the prior-year credit carryforward, total credit available, and current-year Georgia income tax liability on lines 6 through 8.
5. On line 9, subtract line 8 from line 7, but do not enter less than zero.

The supplied form does not provide a mailing address or e-filing instructions.

Common mistakes

• Leaving out the employee list. The form requires this attachment.
• Counting an employee hired too early. A qualified parolee first employed full-time by the employer before January 1, 2017, does not qualify.
• Overlooking the employment period. The form requires at least 40 weeks of employment during a 12-month period between January 1, 2017, and January 1, 2020.
• Claiming the credit more than once for the same person. An employer may receive it only once per qualified parolee.
• Exceeding the limits. The maximum credit is $50,000 per employer per taxable year, and a credit carryforward cannot exceed three years.

Questions people ask

How much is the credit per employee?

The credit is $2,500 per qualified employee, subject to a maximum of $50,000 per employer per taxable year.

In which taxable year is the credit allowed?

The credit is allowed in the taxable year when the employee meets the 40-week requirement.

Does a 30-hour workweek count as full-time?

Yes, if the job also meets the location, wage, and no-predetermined-end-date requirements printed on the form.

How long can the credit be carried forward?

The form states that the credit carryforward cannot exceed three years.

Official sources

• https://dor.georgia.gov/document/form/formit-qpjqualifiedparoleejobstaxcreditpdf/download