Investment Tax Credit

Georgia Department of Revenue

Program Type:

Tax Incentive

Eligible Geography:

Georgia

Summary:

Companies in manufacturing or telecommunications support that have operated in Georgia for at least three years are eligible to earn investment tax credits for upgrades or expansions. The objective of these credits is to make it more affordable for existing Georgia businesses to expand and improve facilities. Credit earned amounts to 1 percent to 8 percent of qualified capital investments of $50,000 or more.

The credit is calculated using two factors:
-Geographic location: Companies in the state's less prosperous counties receive larger credits.
-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. 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 for up to 10 years and applied to future years' tax liability. Companies should compare the benefits of the investment tax credit with those of the job tax credit, as taxpayers are allowed to claim one or the other, but not both.

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

To qualify a company must: Have operated either a manufacturing or telecommunications facility in Georgia for at least three years, and make a minimum $100,000 investment in a new or existing manufacturing or telecommunications facility in Georgia,
OR
Have operated a corporate office or other support facility for a manufacturing or telecommunications company in Georgia for at least three years, and make a minimum $100,000 investment in a new or existing manufacturing or telecommunications facility in Georgia

Eligible Purpose:

Broadband Enabled Devices (General); Broadband-Related Industry; Last Mile Connectivity; Building Connectivity

Eligible Purpose Detail:

Qualified Investment expenses include, but are not those limited to: Land acquisition; Improvements; Buildings; Machinery and equipment to be used in a manufacturing or telecommunications facility. Higher credits (3-8 percent, depending on tier status) are available for investments in: Recycling or pollution control equipment; Defense plant manufacturing conversion to a new product.

Excluded Programs:

Job Tax Credit