Georgia · research and development · GA-RD-001
Research Tax Credit
Publication revised September 24, 2026. Sourcebook page 86.
Credit amount / calculation
10% of excess qualified research expenses over the Georgia base amount, subject to use limits.
Business fit and eligible activity
Georgia manufacturers can claim a credit for increased qualified research. Qualified research activity. Ordinary production, routine quality control and an equipment purchase alone do not qualify.
Eligibility and practical use
A wood-products company can miss this credit by assuming that "research" means white coats and laboratories. In practice, qualifying work can arise in process engineering, product development, automation, drying, recovery, and software. A logging company has a narrower path, but equipment-control, software, or process-development work can sometimes qualify if it satisfies the same technical tests.
Illustrative business benefit
A hardwood mill spends $320,000 on a documented project to improve recovery from low-grade logs using scanner changes, controlled test runs, software adjustments, and revised sawing patterns. Assume $200,000 is ultimately treated as the relevant qualified or excess research base. At 10%, the state credit would be about $20,000 before program caps and tax-liability limits. The company would need records showing the uncertainty, alternatives tested, people involved, and results - not simply a year-end estimate of 'engineering time.'
Timing / first action
Tax-year claim: document the eligible expense, hire or placed-in-service date and meet any separate certification deadline. Identify the technical uncertainty and start contemporaneous project records before trying to calculate the credit.
Official sources
- Georgia Department of Revenue — Research Tax Credit (dor.georgia.gov)
Related programs
Job Tax Credit
Per-job amount varies by county tier and designation
Manufacturers can earn tiered per-job credits, with lower thresholds in distressed counties.
Quality Jobs Credit
Credit amount varies by wage level for taxpayers creating
Larger forest-products employers creating substantial new Georgia jobs at or above the county wage threshold should screen this alongside the regular Job Tax Credit.
Manufacturer's Investment Tax Credit
Credit percentage and thresholds vary by county tier and
Existing manufacturers making qualifying facility/equipment investments can earn a capital credit.
Optional Investment Tax Credit
10% with at least $5 million invested
Large manufacturing investments can elect a high-value alternative credit.
Retraining Tax Credit
50% of eligible retraining costs up to statutory
Existing manufacturers retraining employees for new equipment, technology or processes can qualify.
Georgia Employer Childcare Expense Credit
$1,000 per child in the first year
Forest-products employers making eligible child-care payments for employees can screen this as a workforce-support credit beginning with 2026 tax years.