Georgia Manufacturer’s Investment Tax Credit
The Georgia Manufacturer’s Investment Tax Credit is a state income tax credit available to manufacturers and telecommunications companies that invest in qualified property at a Georgia facility. It rewards capital investment and is structured to provide higher credit rates in less economically developed counties. Governed by O.C.G.A. § 48-7-40.2.
Program at a Glance
| Credit amount | 1% to 8% of qualified investment (rate based on county tier) |
| Who qualifies | Manufacturers and telecommunications companies |
| Applies against | Georgia state income tax (up to 50% of liability per year) |
| Carry forward | Up to 5 years |
| Statute | O.C.G.A. § 48-7-40.2 |
Eligibility
The credit is available to businesses primarily engaged in manufacturing or telecommunications that invest in qualified property at a facility located in Georgia. The taxpayer must have been engaged in manufacturing or telecommunications in Georgia for at least three years prior to the investment.
Credit Rate by County Tier
| Tier 1 (least developed) | 5 to 8% of qualified investment |
| Tier 2 | 3 to 5% of qualified investment |
| Tier 3 | 1 to 3% of qualified investment |
| Tier 4 (most developed) | 1 to 3% of qualified investment |
Qualifying Property
- Machinery and equipment purchased or leased for use directly in qualified manufacturing or telecommunications operations
- Property must be placed in service in Georgia
- Real property (buildings and land) generally does not qualify as investment for credit calculation purposes
Limitations and Carry Forward
The credit may not reduce a taxpayer’s Georgia income tax liability by more than 50% in any single year. Credits that cannot be used in the current year carry forward for up to 5 years. The credit is claimed on the Georgia income tax return using Form IT-CA.
Key Notes
- County tier designations are updated annually by the Georgia Department of Community Affairs
- The credit can be used in conjunction with other Georgia credits in most circumstances
- Businesses considering significant capital investments should evaluate county tier before making location decisions, as the rate differential (1% vs. 8%) can be substantial on large investments
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FAQs
Georgia Manufacturer’s Investment Tax Credit
The Georgia Manufacturer's Investment Tax Credit rewards qualifying manufacturers and telecommunications companies for investing in new property or equipment in Georgia. The credit can be worth 1% to 8% of the qualifying investment, depending on the location and nature of the investment.
The program is generally available to manufacturing or telecommunications companies investing in a new or existing Georgia facility.
A minimum qualifying investment of $100,000 in new property, equipment, or eligible improvements is generally required.
Yes. In order to qualify, the company must have operated the Georgia facility for at least 36 months.
Common qualifying investments include manufacturing equipment, machinery, land improvements, facility-related property, and certain other capital investments tied to Georgia manufacturing or telecommunications operations.
The credit may be applied against Georgia income tax, and in certain rural counties it may also be applied against payroll withholding. Unused credits may be carried forward for up to five years.
Yes. The state provides an additional credit for investments involving pollution control or recycling equipment.
Yes, this program requires state pre-approval via online submission in the Georgia Tax Center.
Ideally before or during the planning of major equipment purchases, facility upgrades, or expansion projects, because timing and approval requirements can affect eligibility.
The Georgia Department of Revenue requests that the project plan and pre-approval information be submitted within 30 days after the completion of the project. The state makes some exceptions when submitting these documents within 30 days of the end of the tax year. It is a best practice to submit the application as soon as the equipment is purchased and installed.