The participation of firms in tax incentive programs

Abstract

This paper analyzes firms that are eligible to participate in Georgia's Job Tax Credit program to determine the characteristics that influence the probability of filing for a state employment tax credit. Empirical results indicate that firms with higher state corporate income tax liability, previous participation, a larger number of jobs credited, and headquartered in the state are more likely to participate in the tax credit program. Larger firms and start-ups are less likely to participate in the tax credit program.