The Research and Development tax credit equals up to 10% of the additional Research and Development expense over a base amount. The base is computed from the previous three years' taxable income and research expenses.

Research and Development tax credits are available to a business engaged in one of the categories to which the jobs tax credit is available (manufacturing, telecommunications, etc.). Taxpayer must have positive net income for the previous three years.

Research and Development tax credits can be used against 50% of the remaining income tax liability after all other credits have been applied in a given year. Unused Research and Development tax credits may be carried forward 10 years. These credits can be added to other tax credits.

The Research and Development base is the taxpayer's Georgia taxable net income in the current year multiplied by whichever is less of the following:

The retraining tax credit is one-half the employer's approved direct retraining cost up to $500 per employee. The credit is available to all business categories. Before a taxpayer applies for the credits, its retraining program must be approved by the Georgia Department of Technical and Adult Education. The retraining program must be for new equipment, a new technology, or a new operating system.

The retraining tax credit can be used against 50% of taxpayer's income tax liability in a given year to reduce or eliminate Georgia income tax liability. Unused credits can be carried forward 10 years. These credits can be combined with other tax credits.