Investment Tax Credits

What Investment Tax Credits Are Available for Your Company?



Jeff Glickman

State and Local Tax Leader | Tax Partner

How we can help

A variety of business tax credits are available to help enterprises expand their operations by absorbing the cost of things such as employee training and onboarding new hires. For companies in the manufacturing industry, the solar investment tax credit and other state and federal investment tax credits are particularly appealing.

The Georgia  Investment Tax Credit is a great incentive for current manufacturers and businesses engaged in telecommunications to move forward with a large capital expenditure on real estate and personal property in the state and recoup some of the cost in the form of tax credits. This investment tax credit only applies to manufacturers and telecom companies that have been operating in Georgia for at least three years.

If your company is eligible to receive investment tax credits through this program, you can claim a percentage of the qualifying real and personal property capital expenses related to the expansion of your enterprise. Typically, the credit covers between 1 and 5 percent of your costs. However, facilities in lesser-developed counties may claim an even higher percentage of certain costs. The exact amount varies depending on the location of the facility and your ability to document and claim certain expenses. This is why working with Aprio is so important.

Why Work With Aprio?

We’ve worked with many companies in the state to capitalize on the tax credits available to these enterprises. Generally, we claim very few investment tax credits each year for our clients since typically the Jobs Tax Credit is a better opportunity. Work with Aprio so you can accurately calculate your claims potential and correctly pick the more profitable tax option for your company.

Moreover, we know that the Georgia Investment Tax Credit is only one area for potential claims. If you’ve recently acquired new equipment or technology, we can explore your claims potential through the Georgia Retraining Tax Credit, which covers employee training on new hardware as well as any costs related to teaching employees about related new business processes.

We can also explore federal tax credits that your company may be eligible for, , such as the solar investment tax credit. Let us analyze your operations and growth goals to determine if expanding with the aim of claiming these credits would be wise for your business from a cost versus benefits perspective.

What Exactly Is Aprio’s Investment Tax Credits Service?

No other company in the Southeast provides a service quite like Aprio’s. If you work with us, we’ll go through the following steps with your enterprise to maximize your investment tax credits claim potential and uncover other profitable tax options:

  • Expenditure analysis: We’ll discuss the nature of your capital expenditures in the state. This includes an analysis of planned expenditures as well.
  • Credit projection: Based on the investment and job creation figures uncovered in step one, we’ll project the total credits available through either the state’s Jobs Tax Credit or its Investment Tax Credit. This will show you which of these two options is better for you in terms of maximum claims potential.
  • Form preparation and documentation: If we find that investment tax credits are the better choice, we’ll obtain more detailed information from you regarding the property. Then, we’ll prepare the credit forms and supporting documents you need to claim those credits. We’ll calculate your credit through one of two methods. The first gives an immediate benefit but at a lower credit rate. The second spreads your credits over a 10-year period. Though you won’t receive them immediately, you’ll have a higher credit rate. You’ll then claim those credits on your annual income tax return.

Aprio is experienced with the nuances of the Georgia’s Investment Tax Credit, so we know how to get the best claim possible. For example, this tax credit is mutually exclusive with the Jobs Tax Credit, so you can only claim one with respect to a particular business expansion. In other words, you can either claim credits for a new facility or equipment through the investment credit, or credits for the employees working in that facility or with that equipment through the jobs tax credit.

Contact Aprio, and we can determine which of these options — pursuing the investment tax credit based on capital expenses and prior job tax credit claims or filing for the Jobs Tax Credit — is more profitable in your case. If it turns out that Georgia investment tax credits are the more lucrative options, we’ll prepare the forms and supporting documentation to calculate and claim your credits.

Start With Aprio’s Tax Credit Services Today

Investment tax credit services usually go hand in hand with the other tax credit and state consulting services available through Aprio. So, working with us, you can discover far more than your claims potential in this one area. We routinely help businesses that have grown, or have expansion plans, to discover and maximize all the tax incentives that are available to them.

For example, the Georgia Retraining Tax Credit is another common area where companies in the manufacturing space can find tax relief. If you’ve recently acquired new technology or equipment, we can evaluate your potential for all important tax credits for growing businesses while also optimizing your investment tax credits and other claims. And don’t forget, we can handle application processing and submissions for you!

Let us evaluate whether the investment credit would provide a better tax outcome than the jobs credit. If your manufacturing or telecom business is planning an expansion or significant capital expenditure, contact Aprio’s SALT group to get started. We’ll evaluate the state tax incentives available to you and help determine whether the Investment Tax Credit or Jobs Tax Credit is best. We can even move forward with processing and submitting the paperwork regardless of which tax credit you decide to claim.

Investment Tax Credits


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