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.

Find out what your research actually qualifies for

A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.