State laws support business research and development with generous tax benefits.
The 21st century has posed both unique advantages and challenges to modern businesses, and the landscape of many industries has changed. Businesses in Georgia today are constantly conceiving new ideas, processes and techniques to stay competitive in the fast-paced market and to maximize profits whenever possible. In fact, many of the state’s companies who practice innovation as part of their ongoing activities are qualified to receive considerable tax benefits on the state and federal levels under the Research and Development tax credit. Taking advantage of the R&D tax credit program can increase business cash flow and benefit the company’s bottom line.
This valuable federal benefit is open to any business that creates, improves or expands projects, processes, or consumer goods. Additionally, the federal R&D tax credit allows eligible companies to cash in retroactively 3 years to the current tax year. There are additional benefits allowed on the state level.
According to the state’s website, the Georgia R&D tax credit can be used to offset up to 50 percent of net Georgia income tax liability, after all other credits have been applied. Also, excess R&D tax credits can be used against state payroll withholding. These are two potential cash flow options for companies in the Peach State that can benefit them now as well as in the future, as tax credits may carry forward 10 years.
Under the guidance of an R&D tax credit expert, Georgia state companies can assess if they are qualified to receive tax credits under the Georgia R&D guidelines as well as at the federal level. National Tax Group tax professionals lead companies through a clear step-by-step process to see if they qualify for these dollar for dollar benefits. Give our tax specialists a call at (561) 257-3436 to schedule your free initial assessment.