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

Schedule a time to connect and take a closer look HERE.