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IT-QI-AP
(7/13)
Definitions
Pass-through entity means a partnership, an S corporation, or a limited liability company
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taxed as a partnership
Professional services means those services specified in paragraph (2) of Code Section 14-
7-2 or any service which requires as a condition precedent to the rendering of such
service the obtaining of a license from a state licensing board pursuant to Title 43.
Qualified business means a registered business that:
(A) Is either a corporation, limited liability company, or a general or limited partnership
located in this state;
(B) Was organized no more than three years before the qualified investment was made;
(C) Has its headquarters located in this state at the time the investment was made and has
maintained such headquarters for the entire time the qualified business benefited from
the tax credit provided for pursuant to this Code section;
(D) Employs 20 or fewer people in this state at the time it is registered as a qualified
business;
(E) Has had in any complete fiscal year before registration gross annual revenue as
determined in accordance with the Internal Revenue Code of $500,000.00 or less on a
consolidated basis;
(F) Has not obtained during its existence more than $1 million in agreggate gross cash
proceeds from the issuance of its equity or debt investments, not including commercial
loans from chartered banking or savings and loan institutions;
(G) Has not utilized the tax credit described in Code Section 48-7-40.26;
(H) Is primarily engaged in manufacturing, processing, online and digital warehousing,
online and digital wholesaling, software development, information technology services,
research and development, or a business providing services other than those described in
subparagraph (I) of this paragraph; and
(I) Does not engage substantially in:
(i) Retail sales;
(ii) Real estate or construction;
(iii) Professional services;
(iv) Gambling;
(v) Natural resource extraction;
(vi) Financial, brokerage, or investment activities or insurance; or
(vii) Entertainment, amusement, recreation, or athletic or fitness activity for which an
admission or membership is charged.
A business shall be substantially engaged in one of the above activities if its gross
revenue from such activity exceeds 25 percent of its gross revenues in any fiscal year or it
is established pursuant to its articles of incorporation, articles of organization, operating
agreement or similar organizational documents to engage in such activity as one of its
primary purposes.
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