IT-RD: Research Tax Credit (2025)
Georgia · Georgia DOR · Used for tax years 2025
Georgia Form IT-RD calculates the Research Tax Credit for a business enterprise with qualified research expenses in Georgia. It reports research expenses, Georgia gross receipts, the credit available to claim, and any unused credit carried forward.
Who files this form
Georgia Form IT-RD is used to calculate the research tax credit for a business enterprise whose qualified research expenses in Georgia exceed a base amount. The business must also claim and be allowed a federal research credit under Section 41 of the Internal Revenue Code for the same taxable year.
The 2025 form applies to taxable years beginning on or after January 1, 2025.
What you'll need
Attach a copy of Federal Form 6765.
To complete IT-RD, have the following information ready:
- Business name, tax ID number, NAICS code, address, business type, contact person, telephone number, and tax year ending.
- Georgia research expenses and Georgia gross receipts for each of the previous three tax years.
- Current-year Georgia research expenses and Georgia gross receipts.
- Current tax liability before credits and the value of all other credits claimed.
- Research tax credit carried over from the prior year.
Common mistakes
- Leaving out the federal attachment. The form requires a copy of Federal Form 6765.
- Missing the special base-amount rule. If the business had no Georgia gross receipts in any of the three preceding tax years, multiply current-year Georgia gross receipts by .300 to calculate the base amount.
- Overlooking the carry-forward limit. The form allows unused credit to be carried forward for five years, but it may not exceed 50% of the business's remaining Georgia tax liability after all other credits have been applied.
Questions people ask
How is the research tax credit calculated?
Subtract the base amount from current-year Georgia research expenses, then multiply the difference by .10. The credit that can be claimed on the return is subject to the tax-liability limit in Section 6.
How do I calculate the base amount?
For each of the previous three years, divide Georgia research expenses by Georgia gross receipts. Add those ratios and divide by three. Multiply current-year Georgia gross receipts by the smaller of that average or .300. If the business had no Georgia gross receipts in any of the three preceding years, use .300 instead.
How much credit can I claim on the return?
First, subtract all other credits claimed from current tax liability before credits. Multiply the remaining liability by 50%. The credit claimed is the smaller of that limit or the total available research tax credit, including the prior-year carryover.
Can unused credit be carried forward?
Yes. Section 6, line 8 shows the available carry-forward. The form allows a five-year carry-forward, subject to the 50% limit on remaining Georgia tax liability after all other credits.
How is the credit handled for an S corporation or other pass-through entity?
The credit on Section 6, line 7 is first applied to any income tax at the entity level and then apportioned to shareholders or partners.