Manufacturer’s Investment Tax Credit
On this page find information and instructions for claiming the Manufacturer’s Investment Tax Credit.
- Tax Credit Code: 106
Summary
A taxpayer that has operated an existing manufacturing or telecommunications facility in the state for the previous three years is allowed a credit against income tax liability. The credit is calculated on expenses directly related to manufacturing or to providing telecommunications services. Taxpayers must apply (use Form IT-APP) and receive approval before claiming the credit on the appropriate tax return. A taxpayer may not claim the job tax credit or the optional investment tax credit when claiming this credit for the same project. Taxpayers must invest a minimum of $100,000 per project/location during the tax year in order to claim the credit.
| Tier Location | Tax Credit | Credit for Recycling, Pollution Control or Defense Conversion Activities |
|---|---|---|
| Tier 1 | 5% | 8% |
| Tier 2 | 3% | 5% |
| Tier 3 or 4 | 1% | 3% |
For a taxpayer with a manufacturing or telecommunications facility in a rural county located in a tier 1 county or tier 2 county that has purchased or acquired qualified investment property in a taxable year beginning on or after January 1, 2020 (which is then claimed on an income tax return in the taxable year after the purchased or acquired taxable year), the excess investment tax credit may be used to offset withholding. The taxpayer must receive preapproval, as provided in Revenue Regulation 560-7-8-.37, to use the excess credit against withholding. A taxpayer that has investment tax credit carry forward for qualified investment property that was purchased or acquired in a taxable year beginning before January 1, 2020, may request preapproval to use such investment tax credit carry forward against withholding tax if certain requirements are met; this provision is repealed on December 31, 2024. The taxpayer must receive preapproval as provided in Revenue Regulation 560-7-8-.37 to use the credit carry forward against withholding. The total amount of tax credits preapproved to be used against withholding tax for taxpayers in rural counties located in tier 1 and tier 2 counties and for taxpayers to use investment tax credit carry forward against withholding together shall not exceed $1 million per taxpayer per calendar year and $10 million for all taxpayers per calendar year. Credits claimed but not used may be carried forward for 10 years from the year that the qualified investment property was acquired, provided that such property remains in service. For taxable years beginning on or after January 1, 2025, any credits generated but not used may be carried forward for five years.
How to Claim this Credit
This credit should be claimed on Form IT-IC and accompanied by the approved Form IT-APP.
Relevant Links: Manufacturer’s Investment Tax Credit
O.C.G.A. §§48-7-40.2, 40.3, and 40.4
Revenue Regulation 560-7-8-.37
Georgia Department of Natural Resources
Department of Community Affairs
Form IT-IC Investment Tax Credit Form
Form IT-APP Investment Tax Credit Application