Georgia R&D Tax Credits

Research and development (R&D) tax credits are a valuable benefit for companies conducting qualified R&D activities in Georgia.  Any business—from startups to existing companies embarking on R&D for the first time, or established companies expanding their existing R&D budget—can be eligible for Georgia R&D tax credits.

R&D tax credits are available to any company that increases its qualified research expenditures, and credit earned 10% of the increase in R&D spending compared to the base amount. The credit can be used to offset up to 50% of net Georgia income tax liability, after all other credits have been applied.

Any unused R&D tax credits can be carried forward for up to 10 years. In addition, excess R&D tax credits can be used against state payroll withholding.

‍

Learn more about Georgia's R&D Tax Credit law here and here. 

‍

R&D Tax Credit Available:

Yes

‍

Eligible Entities:

C-Corporation, S-Corporations, LLCs, Partnerships

‍

Deadline for Tax Filing:

Due with Georgia Tax Return

‍

Data Required to Compute Credit:

Claim Period Georgia Qualified R&D Expenses (QREs)

‍

What Information is needed?

Claim Period Georgia Gross Receipts

‍

Credit Carryforward:

10 Years

‍

The R&D tax credit equals:

• 10% of the tax period QREs that exceed the base amount.

‍

Specific Items to Note:

• The R&D credit can be used to offset up to 50% of the income tax liability, after all other credits have been applied.
• Excess R&D tax credits can be used against state payroll withholding.
• Federal Form 6765 must be attached to Georgia Form IT-RD.