Optional Investment Tax Credit
On this page find information and instructions for claiming the Optional Investment Tax Credit.
- Tax Credit Code: 107
Summary
Taxpayers qualifying for the investment tax credit may choose an optional investment tax credit with the following threshold criteria:
| Designated Area | Minimum Investment | Tax Credit |
|---|---|---|
| Tier 1 | $ 5 Million | 10% |
| Tier 2 | $10 Million | 8% |
| Tier 3 or 4 | $20 Million | 6% |
Taxpayers must apply (use Form OIT-APP) and receive approval before they claim the credit on their returns. The credit may be claimed for 10 years, provided the qualifying investment property remains in service throughout that period. For taxable years beginning on or after January 1, 2025, any credits generated may be claimed for five years, provided the qualifying investment property remains in service. A taxpayer must choose either the regular or optional investment tax credit. Once this election is made, it is irrevocable. The optional investment tax credit is calculated based upon a three-year tax liability average. The annual credits are then determined using this base year average. The credit available to the taxpayer in any given year is the lesser of the following amounts:
- 90% of the excess of the tax of the applicable year determined without regard to any credits over the base year average; 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.
Forms
Taxpayers must apply (use Form OIT-APP) and receive approval before they claim the credit on their returns. The credit must be claimed on Form IT-OIC.
Form OIT-APP Optional Investment Tax Credit Application
Form IT-OIC Optional Investment Tax Credit Calculation
Relevant Links: Optional Investment Tax Credit
O.C.G.A. §§48-7-40.7, 40.8, and 40.9