Does Georgia have a tax credit for angel investors, and how does a startup qualify?

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Georgia has had an Angel Investor Tax Credit, formally the Qualified Investor Tax Credit under O.C.G.A. § 48-7-40.30. However, there is an important catch for a startup raising money now: the Georgia Department of Revenue currently states that the credit applies to investments made only in 2011–2018, with the last corresponding credits claimed in 2020. So despite the statute and registration framework still appearing in Georgia materials, I would not market a 2026 investment as eligible for a current 35% Georgia angel credit without confirmation from DOR.

Department of Revenue

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Historically, the program was quite attractive: an eligible investor received a Georgia income-tax credit equal to 35% of the qualified investment, subject to a $50,000 annual credit cap per individual. The investor generally had to be an SEC-accredited investor and subject to Georgia income tax.

Department of Revenue

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For a startup to constitute a “qualified business,” the statutory requirements are useful to know because they show what Georgia intended to support. The company generally must:

be a corporation, LLC, general partnership, or limited partnership located in Georgia;

have been organized no more than three years before the investment;

have its headquarters in Georgia;

employ 20 or fewer people in Georgia when registered;

have no more than $500,000 of gross annual revenue in any complete fiscal year before registration;

have raised no more than $1 million in aggregate gross cash…

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Sources cited: dor.georgia.gov, law.justia.com

Claude

Georgia has an angel investor credit on the books, but it's dormant — it hasn't covered new investments since 2018.

Current status. The statute (O.C.G.A. § 48-7-40.30, the "Qualified Investor Tax Credit") is still in the Code, but the Department of Revenue confirms the credit is only available for investments made in 2011 through 2018, claimed two years later, so the last claim year was 2020. The 2025 version of the statute still lists those same calendar years, so an investment made today generates nothing. A state auditor's fiscal note put it plainly back in 2020: the credit expired for new investments as of December 31, 2018. Renewal bills have been filed repeatedly and failed — most recently HB 8 in the 2025–2026 session, which was introduced and died in committee.

Qualified Investor Tax Credit | Department of Revenue +2

What qualification looked like (and would likely look like again if revived). The business had to register with DOR before the investment via Form IT-QBR through the Georgia Tax Center, and approval certified it for 12 months. The bar was narrow: a corporation, LLC, or partnership organized no more than three years before the investment, headquartered in Georgia, 20 or fewer Georgia employees at registration, $500,000 or less in gross annual revenue in any prior complete fiscal year, and no more than $1 million raised in aggregate equity or debt over its life (commercial bank loans excluded). It had to be primarily in manufacturing, processing,…

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Sources cited: dor.georgia.gov

Gemini

Yes, Georgia has an Angel Investor Tax Credit officially known as the Georgia Qualified Investor Tax Credit (O.C.G.A. § 48-7-40.30).

Justia Law

The program offers individual accredited investors a state income tax credit equal to 35% of their qualified investment in an early-stage startup, up to a maximum credit of $50,000 per investor per year.

QSBS Expert

How a Startup Qualifies as a "Qualified Business"

For an investor to claim the credit, the startup must formally apply and qualify with the Georgia Department of Revenue. To qualify, the startup must meet all of the following statutory criteria under Georgia Code § 48-7-40.30:

Justia Law

Headquarters & Entity Type: Must be a corporation, limited liability company (LLC), or partnership with its primary headquarters and operations located in Georgia.

Law.Cornell.Edu - Cornell University

Company Age: Must have been organized for no more than 3 years prior to the qualified investment.

Law.Cornell.Edu - Cornell University

Employee Limit: Must employ 20 or fewer full-time employees in Georgia at the time of registration.

Law.Cornell.Edu - Cornell University

Revenue Cap: Must have gross annual revenue of $500,000 or less in any complete fiscal year prior to registration.

Law.Cornell.Edu - Cornell University

Prior Funding Cap: Must not have raised more than $1 million in aggregate gross cash proceeds from prior equity or debt investments (excluding standard commercial loans from banks).

Law.Cornell.Edu - Cornell…

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Sources cited: law.justia.com, dor.georgia.gov, ibccs.tax

Perplexity

No—not for new investments today. Georgia’s “angel investor” program, formally the Qualified Investor Tax Credit under O.C.G.A. § 48-7-40.30, offered a 35% Georgia income-tax credit for investments in registered qualified businesses, but the Department of Revenue states it was available only for investments made from 2011 through 2018. Its current materials still describe the historical program and related forms, rather than an active credit for new startup financings.

dor.georgia

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Historical credit terms

For investments made during the program period, the credit was:

35% of the qualified cash investment in a registered qualified business.

Capped at $50,000 per individual taxpayer per taxable year, including allocations through a pass-through investment entity.

Subject to a statewide annual credit cap, which was $5 million for investments in 2014–2018.

Generally claimable beginning in the second year after the investment, with unused credit subject to a carryforward limit.

dor.georgia

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How a startup qualified

Historically, the startup—not merely the investor—had to qualify and register with the Georgia Department of Revenue using Form IT-QBR through the Georgia Tax Center before investments could be treated as eligible.

dor.georgia

A business generally had to meet all of these conditions:

Requirement Historical standard

Legal form and location Georgia-based corporation, LLC, general partnership, or limited partnership

Age Organized no more than 3 years before…

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Sources cited: dor.georgia.gov, mcdonaldhopkins.com, civicresearchinstitute.com, smith-howard.com, legislature.vermont.gov, marriott.byu.edu, sbnonline.com, startups.com, bridgesdunnrankin.com, qsbsexpert.com, fairburn.com