- Official Code of Georgia Annotated (O.C.G.A.) § 48-7-40.12 – Georgia statute establishing the research tax credit.
- Georgia Department of Revenue (DOR) – State agency administering tax laws and collection.
- Business Enterprise – Entity engaged in qualifying commercial activities.
- Qualified Research Expenses (QREs) – Costs eligible for the research tax credit.
- Research Conducted Within the State of Georgia – R&D activities physically performed in Georgia.
- Base Amount (Georgia) – Benchmark used to calculate the credit amount.
- Georgia Gross Receipts – Total revenue generated from Georgia sources.
- Numerator of the Gross Receipts Factor – Georgia portion of total company gross receipts.
- Average Ratio of Aggregate QREs to Georgia Gross Receipts – Historic spending ratio used to set base.
- 0.300 Multiplier (Base Amount Calculation) – Minimum floor for the base amount calculation.
- Excess QREs over Base Amount – The incremental spend eligible for the credit.
- 10% Credit Rate – Percentage applied to excess QREs for credit.
- Net Georgia Income Tax Liability – Tax owed before applying credits or payments.
- 50% Tax Liability Limit – Cap on credit usage against income tax.
- Remaining Georgia Net Income Tax Liability – Tax due after applying maximum allowable credits.
- Unused Credit Carryforward – Credits saved for future tax years.
- Carryforward Period (10 Years) – Duration unused credits remain valid for use.
- Credit Against Payroll Withholding – Option to offset payroll taxes with credits.
- State Payroll Withholding – Tax deducted from employee wages for state.
- Withholding Election Deadline (3 Years) – Timeframe to choose payroll offset option.
- Form IT-RD (Research Tax Credit) – Georgia tax form for claiming R&D credits.
- Form IT-WH (Notice of Intention to Claim Withholding Benefit) – Form to claim payroll withholding benefit.
- Electronic Filing of Form IT-WH (Mandatory) – Mandatory online submission for withholding claims.
- Federal Section 41 Research Credit (Requirement) – Federal standard required for state eligibility.
- Claim and Be Allowed a Research Credit – Requirement to file and receive federal credit.
- Internal Revenue Code (IRC) of 1986, as amended – Federal tax laws governing R&D credit rules.
- Federal Form 6765 (Required Attachment) – Federal R&D credit calculation form.
- Wages Paid for Research (Georgia) – Employee salaries directly involved in R&D.
- Purchases of Services (Georgia) – Payments to contractors for R&D work.
- Purchases of Supplies (Georgia) – Materials consumed during the research process.
- Technological in Nature (4-Part Test) – Research relies on hard science principles.
- Elimination of Uncertainty (4-Part Test) – Research aims to resolve technical unknowns.
- Process of Experimentation (4-Part Test) – Systematic trial and error to test hypotheses.
- Permitted Purpose (4-Part Test) – Intent to improve functionality, performance, or quality.
- Retail Business (Specific Exclusion) – Excluded industry involving direct sales to consumers.
- Affiliate Entities (Retail Business Exclusion) – Related companies subject to retail exclusion.
- Broadcasting (NAICS Code 515) – Transmitting audio or video content to public.
- Internet Publishing and Broadcasting (NAICS Code 519) – Distributing content via the internet.
- Telecommunications (NAICS Code 517) – Transmission of voice, data, text, or video.
- Motion Picture and Sound Recording Industries (NAICS Code 512) – Production of movies, videos, and music.
- Manufacturing (NAICS Sectors 31-33) – Converting raw materials into finished products.
- Warehousing and Distribution (NAICS Subsectors 423, 424, 493) – Storage and logistics of goods.
- Taxable Year – Fiscal period for reporting tax liability.
- Corporate Income Tax – Tax levied on corporation profits.
- S Corporation (Eligibility) – Pass-through entity avoiding double taxation.
- Partnership (Eligibility) – Business owned by two or more parties.
- Limited Liability Company (Eligibility) – Hybrid entity offering liability protection.
- Sole Proprietorship (Eligibility) – Unincorporated business owned by one individual.
- Revenue Regulation 560-7-8-.42 – Specific administrative rules for R&D credit.
- Look Back Studies (Unclaimed Credits) – Reviewing past years for missed credits.
