Georgia State Tax Credits

More ways to save your hard-earned money from the tax man!

Georgia has some great State Tax Credits for you....

Thank you so much for checking our resource out here for your state and congratulations for taking a proactive step to paying less in taxes. For your state, we have identified the tax credits that are currently being offered to help you pay less in state taxes.

We hope this resource is helpful to you, and if there is something you feel we have missed, please let us know!

It would be completely arrogant of us to think that we know all things and if we missed something we want to know so we can vet that and help you and our other friends in the entrepreneurial community pay less in taxes! And if you found this helpful, you should check out our DIY resources inside of our Tax Savings Communities (found at www.MakeTaxesFair.com/Our-Communities).

We're also ready to help you if you want to skip the line of the DIY process and get help directly from us. To learn more about how we help our clients check out www.MakeTaxesFair.com/Get-My-Roadmap

 
Georgia

Georgia Qualified Education Expense (QEE) Tax Credit

Overview:
The Georgia Qualified Education Expense (QEE) Tax Credit offers taxpayers a state income tax credit for contributions made to approved Student Scholarship Organizations (SSOs) that fund private school scholarships. Preapproval is required, and credit amounts vary based on taxpayer type.

Who It’s For:
Georgia individual taxpayers, pass-through entity owners, and corporations looking to support private school scholarships while reducing their state income tax liability.

Four Key Highlights:

  1. Contribution Preapproval Required

    • Taxpayers must obtain preapproval through the Georgia Tax Center (GTC) before making contributions to eligible SSOs.

  2. Generous Credit Limits by Filing Type

    • Individuals: Up to $2,500–$5,000 depending on filing status.

    • Pass-through owners: Up to $25,000.

    • Corporations and electing entities: Up to 75% of Georgia tax liability.

  3. Five-Year Carryforward for Unused Credits

    • Unused credits can be carried forward for up to five years if not fully applied in the year earned.

  4. Strict Compliance and Timelines

    • Contributions must be made within 60 days of preapproval (or by year-end, whichever is earlier), and cannot be earmarked for specific individuals.

 

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Georgia Retraining Tax Credit

Overview:
The Georgia Retraining Tax Credit offers businesses a way to offset state income tax by retraining full-time employees on new technologies across industries like manufacturing, IT, healthcare, logistics, and renewable energy. This incentive strengthens workforce skills while helping businesses remain competitive.

Who It’s For:
Georgia employers retraining full-time employees on approved new technologies or systems, with retraining programs certified by the Technical College System of Georgia (TCSG).

Four Key Highlights:

  1. 50% Credit on Direct Retraining Costs

    • Businesses receive a 50% tax credit on eligible retraining costs, up to $500 per employee per program (and up to $1,250 annually if employees complete multiple programs).

  2. Focused on Technology-Driven Skills

    • Eligible retraining includes advanced manufacturing, cybersecurity, cloud computing, healthcare technology, logistics tech, construction tech, and renewable energy systems.

  3. Carryforward Opportunities

    • Unused credits can be carried forward for up to 10 years (reduced to five years starting in 2025).

  4. TCSG Program Approval Required

    • Employers must have retraining programs approved by the Technical College System of Georgia (TCSG), and must submit signed Program Completion Forms when claiming credits.

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Georgia Employer’s Jobs Tax Credit

Overview:
The Georgia Employer’s Jobs Tax Credit rewards businesses that create new full-time jobs in Georgia, offering tier-based tax credits depending on the county’s economic ranking. Businesses can offset their state income or payroll withholding tax while encouraging job growth and economic development across the state.

Who It’s For:
Georgia businesses engaged in manufacturing, telecommunications, tourism, R&D, warehousing, or services for the elderly and disabled, especially those expanding in less-developed or Joint Development Authority (JDA) counties.

Four Key Highlights:

  1. Tier-Based Credit Amounts

    • Credits range from $750 to $3,500 per new job, depending on the county’s Tier 1–4 ranking, with an extra $500 per job for businesses in JDA counties.

  2. Health Insurance Offering Required

    • Employers must offer health insurance to qualify (but do not have to pay the premiums).

  3. Offset and Carryforward Flexibility

    • Credits can offset 100% of income tax in Tier 1 and Tier 2 counties, or 50% in Tier 3 and Tier 4 counties, with carryforward allowed for 10 years (5 years for credits generated in 2025 or later).

  4. Strict Application and Documentation Requirements

    • Employers must file within one year, submit payroll and W-2 verification, and complete Form IT-CA (plus Form IT-WH if applying against payroll withholding).

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Georgia Small Employer Health Insurance Tax Credit

Overview:
The Georgia Small Employer Health Insurance Tax Credit offers small businesses a $250 per employee tax credit when they provide a qualified high-deductible health plan (HDHP) to employees. This credit helps businesses offset their Georgia income tax liability while encouraging broader employee healthcare coverage.

Who It’s For:
Georgia employers with 50 or fewer employees (including 1099 contractors) who offer a qualified health insurance plan under Section 125 of the Internal Revenue Code and maintain employee coverage for a full 12 consecutive months.

Four Key Highlights:

  1. $250 Credit per Employee Enrolled for 12 Months

    • Employers earn a $250 credit for each employee who maintains continuous coverage in a qualified HDHP for a full year.

  2. Eligibility Tied to Specific Health Plan Standards

    • Plans must comply with Section 125 rules and qualify as High Deductible Health Plans (HDHPs) under Section 223 of the IRC.

  3. Credit Carryforward Options

    • Credits earned prior to 2025 may be carried forward indefinitely.

    • Credits earned in 2025 and later can be carried forward for up to three years.

  4. Strict Filing and Documentation Requirements

    • Businesses must report the credit on their Georgia corporate income tax return and provide proof of coverage and premium payments when claiming.

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Georgia Land Conservation Tax Credit

Overview:
The Georgia Land Conservation Tax Credit rewards individuals, corporations, and partnerships for donating land or selling land below market value for conservation purposes. The program supports environmental preservation by offering a substantial state income tax credit based on the property’s fair market value.

Who It’s For:
Georgia individuals, corporations, or partnerships donating or selling real property for conservation that is certified by the Georgia Department of Natural Resources (DNR).

Four Key Highlights:

  1. 25% Credit on Conservation Property Donations

    • Taxpayers receive a 25% credit on the fair market value of the donated land (or the bargain sale difference if sold below market value).

  2. Maximum Credit Caps by Entity Type

    • $250,000 for individuals;

    • $500,000 for corporations and partnerships (with allocation rules for partners and shareholders).

  3. Strict Preapproval and Certification Process

    • Properties must be certified by DNR, approved by the State Property Commission, and require a qualified appraisal before claiming the credit.

  4. Carryforward and Selling Options

    • Unused credits can be carried forward for 10 years (5 years starting 2025 credits).

    • Taxpayers may also sell unused credits to other Georgia taxpayers.

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Georgia Qualified Law Enforcement Donation Credit

Overview:
The Georgia Qualified Law Enforcement Donation Credit allows individuals, corporations, and pass-through entities to claim a tax credit for donations made to approved law enforcement foundations. This initiative supports local law enforcement units through designated nonprofit organizations, with strict preapproval and reporting requirements.

Who It’s For:
Georgia individuals, corporations, and fiduciaries (plus partners or members of pass-through entities) who wish to financially support authorized law enforcement foundations while reducing their state income tax liability.

Four Key Highlights:

  1. Generous Tax Credit Limits

    • Individuals can claim up to $5,000 (single) or $10,000 (joint).

    • Corporations and fiduciaries can claim up to 75% of their Georgia income tax liability.

  2. Preapproval Required Before Donation

    • Taxpayers must submit Form IT-QLED-TP1 through the Georgia Tax Center and receive preapproval before making their contribution.

  3. Five-Year Carryforward for Unused Credits

    • Any unused portion of the credit can be carried forward for up to five years, but credits cannot be refunded or transferred.

  4. Strict Compliance for Foundations and Contributors

    • Contributions cannot be designated for specific purposes or individuals.

    • Taxpayers must add back any related federal charitable deductions to Georgia taxable income.

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Georgia Research Tax Credit

Overview:
The Georgia Research Tax Credit offers businesses a tax incentive for increasing qualified research activities within the state. Businesses that qualify for the federal research credit under IRC §41 can claim a 10% Georgia credit for research expenses exceeding a calculated base amount, encouraging innovation and R&D investment.

Who It’s For:
Georgia businesses engaged in manufacturing, warehousing, processing, telecommunications, broadcasting, tourism, or research and development that also qualify for the federal R&D tax credit.

Four Key Highlights:

  1. 10% Credit on Qualified Research Expenditures

    • Businesses can claim 10% of research expenses exceeding the calculated base amount based on Georgia gross receipts.

  2. Linked to Federal R&D Credit Eligibility

    • Companies must qualify for and be allowed the federal research credit (IRC §41) to claim the Georgia research credit.

  3. Flexible Usage and Carryforward Rules

    • Credit can offset up to 50% of Georgia net income tax liability after all other credits.

    • Unused credits can be carried forward for 10 years (five years for credits generated in 2025 and after).

  4. Offsetting Payroll Withholding Taxes

    • Excess research credits can also be used to offset Georgia payroll withholding taxes following specific procedures under Revenue Regulation 560-7-8-.42.

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