Tax Credits

The retraining tax credit allows employers to claim certain costs of retraining employees to use new technology

This credit provides for a statewide job tax credit for any business or headquarters of any such business engaged in manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism, research and development industries, biomedical manufacturing or services for the elderly and persons with disabilities but does not include retail businesses.

Tax Credit Code: 157 (2025)
Carryforward shortened to 5 years
For jobs created and maintained January 1, 2025 and later 

Employers who purchase qualified child care property will receive a credit totaling 100% of the cost of such property.

Employers who provide or sponsor child care for employees are eligible for a tax credit of up to 75% of the employers’ direct costs.

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 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. 

This is a credit against Georgia income taxes for taxpayers owning developments receiving the Federal Low Income Housing Tax Credit that are placed in service on or after January 1, 2001. 

Credit for a business enterprise for the purchase of a motor vehicle used exclusively to provide transportation for employees. 

A tax credit is allowed for research expenses for research conducted within Georgia for any business or headquarters of any such business engaged in manufacturing, warehousing, and distribution, processing, telecommunications, tourism, broadcasting or research and development industries. 

Companies establishing their headquarters or relocating their headquarters to Georgia prior to January 1, 2009 may be entitled to a tax credit.

Businesses or the headquarters of any such businesses engaged in manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism, or research and development that have increased their port traffic during the previous 12-month period by more than 10% over their base year port traffic are qualified for increased job tax credits or investment tax credits. 

Tax Credit Code: 158 (2025)
Carryforward shortened to 5 years

Tax Credit Code: 159 (2025)
Carryforward shortened to 5 years

Also includes tax credits 114J and 114M

All financial institutions that conduct business or own property in Georgia are required to file a Georgia Financial Institutions Business Occupation Tax Return, Form 900. 

For business enterprises who first qualified in a taxable year beginning before January 1, 2009, $450 million in qualified investment property must be purchased for the project within a six-year period. 

A credit for a business enterprise for the purchase of an electric vehicle charger located in the State of Georgia. 

An incentive for a manufacturer who has operated a manufacturing facility in this state for at least 3 years and who spends $800 million on a new manufacturing facility in this state. 

For tax years beginning January 1, 2022 and later, this Credit Code no longer applies. Taxpayers seeking to utilize Historic Rehabilitation Credits should refer to the summaries for Code 135 and Code 149 for further information. 

Production companies which have at least $500K of qualified expenditures in a state certified production may claim this credit. Certification must be approved through the Georgia Department of Economic Development.

This provides for an income tax credit for the qualified donation of real property that qualifies as conservation land. 

This provides a tax credit for qualified educational expenditures made to a student scholarship organization (SSO). 

This provides tax credits for certain qualified investments into a research fund, or a legal entity in which the research fund has invested, made on or after July 1, 2008. 

This provides a tax credit for transporting or diverting wood residuals to a renewable biomass qualified facility on or after July 1, 2008. 

An employer, who employs 50 or fewer persons either directly or whose compensation is reported on Form 1099, is allowed a tax credit for qualified health insurance expenses in the amount of $250.00 for each employee enrolled for twelve consecutive months in a qualified health insurance plan. Qualified health insurance means a high deductible health plan as defined by Section 223 of the Internal Revenue Code. 

For tax years beginning on or after January 1, 2009, a taxpayer creating at least 50 “new quality jobs” may be entitled to a credit provided certain conditions are met. 

O.C.G.A. §48-7-40.15A provides an alternate port tax credit. The definitions of “base year port traffic” and “port traffic” include imports and exports of product. 

This provides a 35% credit for amounts invested in a registered qualified business.

For taxable years beginning during 2013, the aggregate amount of film tax credits allowed for qualified interactive entertainment production companies and their affiliates which are qualified interactive entertainment production companies shall not exceed $25 million. 

For tax years prior to January 1, 2022, Credit Code 135 is used for any rehabilitation that is not a Historic Home Rehabilitation.  

This provides a tax credit for a donation to a Rural Hospital Organization (RHO). The credit is allowed on a first-come, first-served basis. 

Effective for taxable years beginning on or after January 1, 2018 and before January 1, 2023, postproduction companies that have at least $500,000 in qualified postproduction expenditures may claim this tax credit if they have received preapproval from the Department. Postproduction companies must request certification and preapproval electronically from the Department through the Georgia Tax Center. 

Effective for taxable years beginning on or after January 1, 2018 and before January 1, 2023, small postproduction companies that have at least $100,000 but less than $500,000 in qualified postproduction expenditures may claim this tax credit if they have received preapproval from the Department. 

Effective for taxable years beginning on or after January 1, 2018, this credit is allowed on a first-come first-served basis.

Effective for taxable years beginning on or after January 1, 2018 and before January 1, 2023.

Effective for taxable years beginning on or after January 1, 2018, certified entities and eligible businesses that have received certification from the Georgia Department of Community Affairs may claim this tax credit.

Tax Credit Code: 161
Carryforward shortened to 5 years
 

Effective for taxable years beginning on or after January 1, 2018, a rural investor that has made a capital investment in a rural fund and has received certification from the Georgia Department of Community Affairs may claim this tax credit. 

Effective for taxable years beginning on or after January 1, 2018, a qualified employer that operates a facility in Georgia that recycles post-consumer waste materials into polyester bulk continuous filament fibers may claim this tax credit. 

This is a refundable income tax credit for taxpayers that suffered damage due to Hurricane Michael during 2018. 

Tax Credit Code: 155
Carryforward 10 years

Effective for taxable years beginning on or after January 1, 2019 and ending on or before December 31, 2026, a Class III railroad must request preapproval electronically from the Department through the Georgia Tax Center for this credit. 

Effective for taxable years beginning on and after January 1, 2020 and if certain requirements are met, a personal protective equipment manufacturer that qualifies for and claims the jobs tax credit under O.C.G.A. §48-7-40 or O.C.G.A. §48-7-40.1, may claim an additional job tax credit of $1,250 per job for jobs engaged in the qualifying activity of manufacturing personal protective equipment.

For taxable years beginning on and after January 1, 2021 and if certain requirements are met, a medical equipment and supplies manufacturer or pharmaceutical and medicine manufacturer that qualifies for and claims the jobs tax credit.

Tax Credit Code: 160 (2025)
Carryforward shortened to 5 years
 

For taxable years on or after January 1, 2022, this Credit Code applies to all Historic Homes and any Other Certified Structure earning $300,000 in credits or less. 

For taxable years beginning on or after January 1, 2023, and ending on or before December 31, 2027, a taxpayer is allowed a tax credit for donations made to qualified law enforcement foundations for a local law enforcement unit (any agency, office or department of a county, municipality, or consolidated government). 

For taxable years beginning on or after January 1, 2023, a taxpayer is allowed a tax credit for donations made to qualified foster child support organizations.

A credit is available for tax years 2023 through 2029 for the certified rehabilitation of a historic home. 

A credit is available for tax years 2023 through 2029 for the certified rehabilitation of a certified structure other than a historic home

O.C.G.A. §48-7-29.26 provides for a $5,000 tax credit for rural health care professionals, which mean a dentist or physician who practices and resides in a rural county. 

This credit is for a taxpayer or entity who converted or retrofitted a conventional fuel vehicle to a vehicle fueled solely by an alternative fuel.

For taxable years beginning on or after January 1, 2026, a taxpayer is allowed a tax credit for eligible childcare payments. Payments must total at least $1,000 per year for each employee for whom the payment is made.

O.C.G.A. §48-7-29.1 provides a disabled person credit equal to the lesser of $500 per residence or the taxpayer’s income tax liability for the purchase of a new single-family home that contains all of the accessibility features listed. 

O.C.G.A. § 48-7-29.10 provides taxpayers with a credit for qualified child and dependent care expenses. 

O.C.G.A. § 48-7-29.9 provides a tax credit for Georgia residents who are members of the National Guard or Air National Guard and are on active duty full time in the United States Armed Forces, or active duty training in the United States Armed Forces for a period of more than 90 consecutive days. 

O.C.G.A. §48-7-29.2 provides a qualified caregiving expense credit equal to 10 percent of the cost of qualified caregiving expenses for a qualifying family member. 

O.C.G.A. §48-7-29.4 provides for a credit for a taxpayer who receives disaster assistance during a taxable year from the Georgia Emergency Management and Homeland Security Agency or the Federal Emergency Management Agency. 

O.C.G.A. §48-7-29 provides for a $5,000 tax credit for a person qualifying as a rural physician on or before May 15, 2024. 

Credit for Adoptions Occurring in Taxable Years Beginning on or After January 1, 2008 and before January 1, 2021. Georgia Code § 48-7-29.15 provides an income tax credit for the adoption of a qualified foster child.

O.C.G.A. §48-7-29.17 provides taxpayers a credit for the purchase of an eligible single-family residence located in Georgia. 

Georgia allows a credit for tax paid to another state on income taxable to Georgia and the other state. 

You may claim the low income credit if your Federal adjusted gross income is less than $20,000 and you are not claimed or eligible to be claimed as a dependent on another taxpayer’s Federal or Georgia income tax return.

O.C.G.A. § 48-7-29.22 provides an income tax credit for a community based faculty preceptor that conducts a preceptorship rotation(s). 

O.C.G.A. §48-7-29.15 provides an income tax credit for the adoption of a qualified foster child. This credit applies to adoptions occurring in taxable years beginning on or after January 1, 2021.

O.C.G.A. §§ 20-2-251 and 48-7-29.23 provide an income tax credit for teachers designated by the Georgia Department of Education (DOE) as a participating teacher in the teacher recruitment and retention program that can be used against their income tax liability in an amount equal to $3,000 per school year for up to five school years, which must be consecutive.  

Georgia Code § 48-7-29.27 provides an income tax credit of $250 for each qualifying child.  The term “Qualifying child” has the same meaning allowed in Section 24(c) of the Internal Revenue Code and the child has not attained the age of six during the taxable year.