Investment Tax Credit
Existing Georgia companies that have operated a manufacturing or telecommunications support facility in Georgia for at least three years, and that make a minimum $50,000 additional qualified capital investment, may claim from three to eight percent of the new investment directly related to manufacturing or providing telecommunications services as a tax credit. Higher credits are available for investments in recycling or pollution control equipment and for defense plant manufacturing conversion to a new product. Taxpayers must choose either the investment tax credit or the job tax credit. This credit may be applied against 50 percent of state corporate income tax liability and carried forward for 10 years.
Optional Investment Tax Credits
The optional investment tax credit can be taken in lieu of the investment tax credit. The credits range from six to 10 percent of qualified capital investment, with the minimum investment ranging from $5 million to $20 million. A taxpayer can use the tax credits up to the calculated amount for a given year. The credit may be claimed up to 10 years after the year the property was first placed in service, provided the property remains in service. The optional investment tax credit is a calculated risk. Without large increases each year in income tax liability, the useable tax credit could be very small and possibly zero.