Optional Investment Tax Credit

Summary

Companies investing a minimum of $5 to $20 million may consider an optional investment tax credit against corporate income tax liability instead of the investment tax credit.

Maximum credits range from 10 percent of qualifying property in Tier 1 counties to six percent in Tier 4 counties. The actual amount of the credit is either:

  • 90 percent of the increase in tax liability in the current taxable year over a base year tax; or

  • The excess of the aggregate amount of the credit allowed over the sum of the amounts of credit already used in the years following the base year (whichever is the lesser).

The credit may be taken for 10 years. The credit may not be taken with the job tax credit. An election of the optional investment tax credit is irrevocable.

See Georgia Code 48-7-40.7, 40.8 and 40.9 and Georgia Department of Revenue Rules and Regulations 560-7-8-.40 for more detail.