Form It-Rd - Research Tax Credit
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2IT-RD (10/08)
Department of Revenue
Taxpayer Services Division
Research Tax Credit
Section 48-7-40.12
A tax credit is allowed for a business enterprise which has qualified research expenses in Georgia in a taxable year exceeding
a base amount, provided that the business enterprise for the same taxable year claims and is allowed a research credit under
Section 41 of the IRS Code of 1986, as amended. A copy of Federal Form 6765 must be attached.
Section 1. Taxpayer Information
Name
Tax ID No.
Address
Type of Entity (C Corp, etc.)
SIC Code
City/State/Zip Code
Tax Year Ending
Contact Person
Telephone Number
Section 2. Ratio Calculation
(A) Previous 3 Years
(B) Georgia Research Expense
(C) Georgia Taxable
Equals Ratio (D)
Net Income
[Col.B/Col.C]
(E) Total from Column (D) =
Section 3. Calculation of Average
Total from (E)
Divided by 3
Equals Average Research Ratio (F)
3
=
Section 4. Calculation of Tax Base
Current Year Georgia Taxable Net Income
Multiplied by (F) or .300, whichever is less
= Base Amount (G)
$
$
Section 5. Calculation of Tax Credit
Current Year Research
Minus Base Amount (G)
Equals (H)
Multiply (H) by .10
Equals Tax Credit (I)
Expense
$
$
$
X .10
$
Section 6. Application of Credit and Carry-Forward
(1) Current Tax Liability Without any Credits
$
(2) Value of all other Credits Claimed
$
(3) Subtract line (2) from line (1), this is the remaining tax liability
$
(4) Multiply line (3) by 50%, Maximum credit allowed
$
(5) Enter Research Tax Credit from line (I) in Sec. 5
$
(5a) Enter amount of tax credit carried over from prior year
$
(6) Total available Research Tax Credit, line 5 & 5a
$
(7) Credit to be claimed on return, lesser of line (4) or lines (6)
$
(8) If lines (6) exceeds line (7), Unused Credit or Carry-Forward
$
Line 8 is the Available Carry-Forward. This amount may be carried forward for 10 years but may not exceed 50% of the
business enterprise’s remaining Georgia tax liability after all other credits have been applied. Column (C) Section 2
must show positive Georgia Taxable Net Income for all three years in order to qualify. See example on back.
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