State program
Georgia Research and Development Tax Credit
A broadly available credit that can offset both income tax and, once exhausted, state payroll withholding.
Program Overview
Georgia allows businesses that increase qualified research spending in the state to claim a credit against Georgia income tax, capped each year at a percentage of the taxpayer's liability. What makes the program unusually valuable is that unused credits may be applied against state payroll withholding tax, which converts the credit into near-cash for pre-profit companies with Georgia employees. The base amount is computed using a Georgia-specific ratio of research spending to gross receipts.
Eligibility
Any business conducting qualified research in Georgia that claims or could claim a federal research credit. The withholding offset election requires an application before the credit is applied.
Benefits
Offsets up to 50% of Georgia net income tax liability; excess credits may be applied against Georgia payroll withholding tax.
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