Tax Candi

Fall is definitely in the air (or is that winter)?  So, let's jaunt down the eastern coast to warmer climates...

Georgia Investment Credits (Standard, Port and Optional)

The standard Georgia Investment Tax Credit (ITC) ranges from 1% to 8% of qualified capital investments made by eligible companies.  The Percentage of ITC depends on the project county's tier level (of which there are three).  The ITC is available to:

• Existing manufacture or telecommunications business that
• Already operates a facility in Georgia
• And has done so for at least the 3 years prior to the investment, and
• Invests at least $50,000.

(Note: Higher level credits of 3% to 8% are given for investment in recycled equipment, pollution control equipment, and for certain plan conversions.) 

The ITC can be used against up to 50% of income tax liability in a given year and may be carried forward 10 years. AND companies pursuing the ITC are barred from also recieving the Jobs Tax Credit.

The Port Investment Bonus an alternative investment tax credit available to taxpayers with large shipments in or out of a Georgia port.  The port bonus increases the investment tax credit to 5% of qualified capital investment costs, regardless of project county tier level.  Since the 5% is in lieuof the investment tax credit, companies need to negotiate to see what the standard ITC would be higher first.  The port investment bonus is limited to 50% of income tax credit liability in a given year and may be carried forward 10 years. 

The Optional Investment Tax Credit can be taken in lieuof the Investment Tax Credit, as well.  The credits range from 6% to 10% of qualified capital investment cost depending on the project county's tier.    All requirements for this credit are the same as the ITC, except the minimum investment determined based on the tier of level of county, ranging from $5 to $20 million. The credit may be claimed up to 10 years.  The Optional Investment Tax Credit equals 90% of the difference between (1) the taxpayer’s Georgia income tax liability for the current year and (2) the taxpayer’s base tax liability. 

Companies interested in pursuing any of these credits should contact the Georgia Department of Economic Development.