Georgia Manufacturer’s Investment Tax Credit Overview

The Georgia Manufacturer’s Investment Tax Credit (Credit Type Code 106) is a tax credit for a manufacturing or telecommunications company. It is based on the amount of additions to property, plant and equipment assets and the location of these assets. These assets can include costs of capitalized items and operating leases. Finally, the tax credit is earned the year after the assets are acquired (for example, plant expansion in 2016 and tax credit earned in 2017).

For this credit, the GA Department of Revenue (DOR) administers the program and the Department of Community Affairs (DCA) determines the location credit percentages. The percentages, and thus the potential credit amounts, can change each year. DCA releases the new tier rankings each December for the following year.

Key points to remember:
  • The tax credit amount is based on the costs and the county where the assets are located. For example, a $1,000,000 plant expansion in Gwinnett County (1% level) will generate a $10,000 tax credit in 2017. ($1,000,000 X 1%).
  • Right now you have five years of potential benefits to consider: 3 prior years, this year, and plans for next year.
  • Benefit $$s go to any company or pass-through equity owners that pay Georgia income taxes.
This tax credit could be a great option for your manufacturing or telecommunications clients. An expansion to a manufacturing plant could provide a lot of opportunity. For details, click here.