Investment tax credits generally range from 8% to 1% of qualified capital investment. The exact credit [chart below] depends on the tier level of the county where the investment occurs. Investment tax credits are available to an existing manufacturing or telecommunications business that has operated a facility in Georgia for three years prior to the investment and invests $50,000 or more. Higher level credits range from 8% to 3% [chart] for investment in recycled equipment, pollution control equipment, and for the conversion of a defense plant to manufacturing of a new product. The recycle, pollution control, and defense conversion options are available only for manufacturing plants. Taxpayers must choose either the investment tax credit or the job tax credit.

Example: Taxpayer in a tier 1 county invests $100 million in a manufacturing plant plus $25 million in recycling equipment. Taxpayer is eligible for a $7 million tax credit to reduce or eliminate Georgia income tax. [$100 million x 5%] + [$25 million x 8%] = $7 million.

Investment tax credits can be used against 50% of income tax liability in a given year. Unused credits may be carried forward 10 years.

Port Investment Bonus is available to taxpayers with large increases of shipments in or out of a Georgia port. The port bonus increases the investment tax credit to 5% regardless of the tier level. The 5% is in lieu of the investment tax credit [above]. The port bonus is limited to 50% of income tax liability. Unused credits may be carried forward 10 years.

Example: Taxpayer qualifies for a port bonus in a tier 4 county, invests $100 million in a manufacturing plant plus $25 million in recycling equipment. Taxpayer is eligible for a $5.75 million investment tax credit to reduce or eliminate Georgia income tax: [$100 million x 5% ] + [$25 million x 3% ] = $5.75 million. The port bonus cannot be added to the higher tax credits such as recycling. The investment bonus cannot exceed 5% in a tier 1 county.