Georgia Income Tax Credits – Are they in your wallet?
The State of Georgia provides over 30 income tax credits for a broad variety of business activities. Income tax credits have many nuances and generally target specific regions, industries, and business activities.
State policy makers enact tax credits as an incentive for economic stability and growth. Georgia’s initial tax credits were enacted in the early 1990s, and almost every year since inception the credit laws have been enhanced, modified or revised. What began as a job creation tax credit for the 40 lesser developed counties of the state has grown into over 30 cash saving tax credits that are quite often overlooked by businesses.
Is your company taking full advantage of tax credits for which you are eligible? If you’re not sure, consider some of the activities that may trigger Georgia Income tax credits:
- Job creation
- Capital investment
- Research and development expenses
- Employer provided training
- Employer provided childcare
- Employer provided transportation
- Utilizing the Georgia Ports
- Purchasing low or zero emissions vehicle
- Installation of electric vehicle charger
- Qualifying film or entertainment production expenses
- Installation of clean energy property
- Donation of real property that qualifies as conservation land
- Qualified educational expenses
- Employer qualified health insurance expenses
- Qualified “Angel” investor
Georgia is considered “business friendly.” This simply means the state provides options – in some circumstances – for utilizing tax credits. In most cases the credits are used to offset the income tax liability, but some credit policies allow for the credit to offset Georgia employer’s withholding tax. There are also some tax credits that may be sold or transferred to another Georgia taxpayer. As mentioned above, there are a number of nuances to the Georgia tax credits and it may benefit you to seek assistance from a professional with experience in this area.
We assist companies with the identification, quantification and tax planning for the utilization of Georgia tax credits. If you would like to consult with one of our State and Local tax experts, please contact Carlton Huntley at 404.573.4260 or via email Carlton.Huntley@frazierdeeter.com.