Coming Soon: Changes to Georgia Incentive Programs

The state of Georgia offers a suite of income tax credits to encourage initial and ongoing corporate investment. HB1181, passed in May of 2024, updates the carry-forward period on many of these income tax credits effective January 1, 2025, with the most salient outlined below.

Updated from a 10-year carryforward to a five-year carryforward:

• Job Tax Credit
• Investment Tax Credit
• Retraining Tax Credit
• Research Tax Credit
• Port Activity Tax Credit

Updated from a five-year carryforward to a three-year carryforward:

• Film Tax Credit
• Postproduction Tax Credit
• Rural Zone Tax Credit

Additionally, the Department of Revenue will consider the amendments below at a regulation hearing on September 30, 2024, at 10:00 a.m. Eastern Time.

Filers of Consolidated Returns:

• A Georgia affiliated group filing a consolidated federal income tax return would no longer need to petition the state commissioner before doing so for state income tax purposes.

Proposed changes to tax credit filing requirements to apply against withholding:

• Extends the submittal window for the IT WH Notice of Intent filed with the Georgia Tax Center (to apply excess income tax credit against withholding tax liability) from 30 days post income tax filing to within the three-year statute of limitations period. This may represent an opportunity to apply unused credits from prior years against withholding liability in cases where the IT WH Notice of Intent was not timely filed.
  • Effective January 1, 2025, on the following Tax Credits:
    • Job Tax Credit
    • Qualified Research Expenses Credit
    • Film Tax Credit
    • Postproduction Film Tax Credit
    • Musical Tax Credit
    • Personal Protective Equipment Manufacturer Jobs Tax Credit
    • Life Sciences Manufacturing Job Credit

If you have questions about how this legislation or other tax matters will impact your business, reach out to the Ryan contacts listed below.

TECHNICAL INFORMATION CONTACTS:

Allea Newbold
Principal
Ryan
813.371.0566
allea.newbold@ryan.com

Matt Lowell
Principal
Ryan
321.251.2924
matt.lowell@ryan.com

Savannah Jermance
Director
Ryan
505.312.4411
savannah.jermance@ryan.com

Jay Patel
Senior Manager
Ryan
210.429.8271
jay.patel@ryan.com

Meghan Sproule
Senior Consultant
Ryan
760.885.3287
meghan.sproule@ryan.com

The material presented in this communication is intended to provide general information only and should solely be seen as broad guidance and not directed to the particular facts or circumstances of any individual who may read this publication. No liability is accepted for acts or omissions taken in reliance upon the content of this piece. Before taking (or not taking) any action, readers should seek professional advice specific to their situation from Ryan, LLC or other tax professionals. For additional information about this topic, please contact us at info@ryan.com.