The R&D Tax Credit is back! Find out how the Big Beautiful Bill Act can fund your R&D. Learn More
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Georgia offers a Research and Development Tax Credit that rewards companies increasing their qualified research activity in the state. The credit is designed to encourage growth in innovation and technical development and can be claimed alongside the federal R&D credit.
The Georgia credit equals 10% of qualified research expenses (QREs) that exceed a base amount, which is calculated using the taxpayer’s gross receipts and prior-year research spending. This “incremental” structure means businesses that expand their R&D activity in Georgia gain the most benefit.
Qualified expenses follow the federal IRC §41 definition but must be tied to research performed in Georgia. These typically include wages for in-state R&D employees, supplies used in qualified research, and 65% of contract research carried out in Georgia.
The credit is claimed against Georgia corporate income tax liability, and any unused amounts can be applied against the company’s state payroll withholding tax — a unique feature that makes it especially valuable for startups and growing companies with little or no income tax liability. Credits can be carried forward for up to 10 years.
📄 Georgia Department of Revenue – R&D Credit Overview
📄 Form IT-RD + Instructions (PDF)
It’s important to note that Georgia’s ability to apply unused credits to payroll withholding sets it apart from most other states. This allows early-stage and high-growth companies to generate immediate cash flow savings. Our team helps ensure that your QREs are properly documented, your base amount is calculated correctly, and your filings align with both state and federal requirements.
Starting in tax year 2025, businesses can now immediately deduct domestic R&D expenses in the year they occur instead of spreading deductions over five years. The bill also offers refund opportunities for small businesses and faster deduction schedules for larger companies.
If your business has $31 million or less in annual gross receipts, you may be able to:
File amended returns for 2022–2024 to get cash refunds for previously capitalized R&D costs
Deduct remaining unamortized R&D expenses faster starting in 2025
Apply your R&D credit against payroll taxes—up to $500,000 per year for qualifying startups
Yes. Eligible small businesses can retroactively deduct R&D costs from 2022–2024 and claim refunds. Even larger companies can accelerate the deduction of past R&D costs over one or two years starting in 2025.
No. The 15-year amortization rule for foreign R&D remains in place. The new immediate expensing option only applies to U.S.-based research and development.
Savings vary, but many businesses may recover hundreds of thousands of dollars through a combination of:
Full expensing of domestic R&D costs
Retroactive refunds for 2022–2024
Annual R&D tax credits (often worth 5–10% of qualifying expenses)
Startups with less than $5 million in annual revenue can use the R&D credit to offset payroll taxes—up to $500,000 per year—resulting in quarterly cash refunds, even without taxable income.
Work with our expert team at TaxTaker. We help innovative companies like yours identify, document, and claim the maximum R&D tax credit available—while ensuring you stay fully compliant with IRS requirements. Our team specializes in both federal and state R&D tax credits, and we know how to uncover hidden value by reviewing past filings for potential refund opportunities. With the new 2025 rules in place, we’ll build a tailored strategy that maximizes your savings now and in the years ahead. That’s why businesses across the country trust TaxTaker to deliver results they can count on.
Working with TaxTaker is risk free. TaxTaker collects a success fee only if you qualify for a tax credit.
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