Georgia R&D Tax Credits

Federal and Georgia tax legislation grants tax credits to encourage and reward firms for investing in R&D. This article looks deeper into Georgia research and development tax credits, and you can use it to recognize whether your company qualifies.

Who Can Apply for Georgia R&D Tax Credit?

The Georgia research and development tax credit is available to any firm, from startups to established businesses extending their existing R&D expenditure. Georgia R&D credits are offered to companies in the state that raise their qualified research costs, with a credit equal to 10% of the growth in R&D spending above the base level.

After you’ve applied all other credits, you can utilize the R&D tax credit to reduce the net Georgia income tax liability by up to 50%. You can carry forward any unused Georgia research tax credit for up to ten years. Additionally, extra R&D tax credits may be applied to state payroll deductions.

How to Calculate the Georgia Research Tax Credit

Calculate 10% of QREs that exceed the basic amount during the tax period.

Georgia’s R&D Tax Credit: Takeaway

You can use the Georgia R&D tax credit to offset up to 50% of the income tax liability. You can also offset state payroll withholding with excess Georgia research and development tax credits. To apply, you must submit Georgia Form IT-RD along with Federal Form 6765.

FAQs

What kind of companies can apply in Georgia?

Partnerships, LLCs, S-Corporations, C-Corporation.

What is the deadline for applying in Georgia?

You must submit your application at the same time as the Georgia Tax Return.

What data do I need to calculate credit in Georgia?

Claim period QREs (Qualified R&D Expenses)

What information do I need to provide?

Georgia Gross Receipts for the claim period.

Is credit carryforward an option in Georgia?

Yes, up to ten years.