Tax Incentives Blog

State Incentive Spotlight: Georgia Investment Tax Credit

Written by Stephanie Cornejo Banuelos. Updated Oct 13, 2018.

Georgia

The Georgia Investment tax credit is designed to service two specific industries; Manufacturing and Telecommunications.  The intent is to help these industries grow by making it more affordable to expand and improve facilities. Investment tax credits can be used to offset up to 50 percent of a company’s Georgia corporate income tax liability. If the earned credit exceeds that limit, then the unused credit can be carried forward up to 10 years and applied to future years’ tax liability. Taxpayers generally claim one of the three Georgia credits for the same project and/or jobs. The credits available are (1) the Investment Tax Credit, (2) the Job Tax Credit, and (3) the Quality Job Tax Credit.

Eligibility Requirements:

  • $50,000 required minimum qualified investment.
  • Operations in Georgia for at least 3 years.
  • Expense must be reasonably related or necessary to the manufacturing process or to providing telecommunications services.
  • Written application must be submitted to the GA DOR at least 30 days before claiming credit.
  • Project cannot exceed 3 years unless expressly approved in writing by the Commissioner of the Georgia Department of Revenue. 

The credit is calculated using two factors. First, the geographic location. Companies in the state’s less prosperous counties receive larger credits. These counties are numbered in tiers and are shown in the table below. Second, the type of investment. Companies that invest in recycling equipment, pollution control or in converting a defense plant manufacturing facility to a new product earn tax credits of 3 percent to 8 percent of their capital outlay. Investment in general equipment for manufacturing or telecommunications services earns tax credits of 1 percent to 5 percent.

Your company may have significant tax savings if they are in the manufacturing or telecommunications industry, have been operating in Georgia for over 3 years and have qualified investments over $50,000. Reach out to us today -- CTI’s Business Incentives tax experts can help your company capture and maximize one of the top investment tax credits in the state of Georgia.

Investment Tax Credit

Tier

Investment
Credits (%)

Minimum Investments

Limit of Credits

Carryforward
(Years)

1

5-8

$50,000

50% of tax liability

10

2

3-5

$50,000

50% of tax liability

10

3

1-3

$50,000

50% of tax liability

10

4

1-3

$50,000

50% of tax liability

10


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Topics: Employment Incentives, WOTC

Stephanie Cornejo Banuelos

Written by Stephanie Cornejo Banuelos

Stephanie Banuelos leads CTI’s Credits & Incentives Practice with primary oversight of operations and overall practice development. She is focused on identifying, and maximizing federal, state and local tax credits that drive job creation, job training, capital investment and new business development.

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