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GEORGIA BUSINESS CREDIT

Job Tax Credit

The act provides for a statewide job tax credit for certain business enterprises that have hired sufficient numbers

of employees. Three tiers for the credit have been established. For additional information or Form IT-CA, contact

the Office of the Commissioner of Community Affairs at (404) 679-1592.

Investment Tax Credit

The Investment Tax Credit program, available to manufacturers and telecommunications companies, is based on

the same tiers as the Job Tax Program. The taxpayer must spend at least $50,000 on an expansion project to qual-

ify. The amount of credit increases for investments for recycling, pollution control and defense conversion activi-

ties. Taxpayers must elect to claim either the investment tax credit, the optional investment tax credit or the job

tax credit for their operations in Georgia, but only one credit for a given project.

To be eligible for the investment tax credit, a taxpayer must purchase or acquire qualified investment property

pursuant to an approved project plan (use Form IT-APP). The investment tax credit is computed on form IT-IC and

is claimed on line 3, Schedule 3 as “other credits.”

Optional Investment Tax Credit

The optional investment credit is similar to the regular investment tax credit. However, there are higher spending

thresholds. Companies with projects of $5 million, $10 million, or $20 million depending on whether the facility is

located in a tier 1, tier 2 or tier 3 county, respectively, may qualify. This credit provides for higher credit amounts

as well as a 10-year calculation. As indicated with the regular investment tax credit above, prior approval is

required (use Form OIT-APP). The Optional Investment Tax Credit must be computed on Form OIT-IC and claimed

on line 3, Schedule 3 of the Form IT-600 as “other credits”.

Retraining Tax Credit

Retraining programs must enhance the functional skills of employees otherwise unable to function effectively on the

job due to skill deficiencies or who would otherwise be displaced because such skill deficiencies would inhibit their

utilization of new technology. The Retraining Tax Credit must be computed on a Form IT-RC and claimed on line 3,

Schedule 3, as “other credits.” For a copy of the Retraining Tax Credit Procedures Guide, contact the Department

of Technical and Adult Education at 404-679-1700.

Child Care Credit

For tax years beginning on or after January 1, 2000, the State of Georgia has a new and improved child care credit.

Employers who provide or sponsor child care for employees are eligible for two possible credits. The first option pro-

vides a credit, which is 75% of the cost of operations, less any amount paid by employees. The second option provides

a 100% write off over ten years for an employer who builds an onsite day care center. The credits are to be claimed on

the Forms IT-CCC75 and IT-CCC100 and are claimed on line 3, Schedule 3, as “other credits”.

Research Tax Credit

For tax year beginning on or after January 1, 1998, Georgia provides for a Research Tax Credit. Business enter-

prises that qualify for the federal Research Tax Credit may also qualify for a credit against their Georgia Income

Tax. The credit is claimed on a Form IT-RD. For more information call the Tax Conferee’s Office at 404-656-4171.

Small Company Business Growth Tax Credit

For tax years beginning on or after January 1, 1998 Georgia introduced a credit to reward rapidly growing small

businesses. If your company has a Georgia taxable income of less than $1.5 million then you may qualify. This

credit rewards business enterprises which can show a 20% increase in Georgia net taxable income in each of

three years. This credit is claimed on a form IT-RG.

Port Activity Tax Credit

To increase usage of Georgia Ports, a port activity tax credit has been established. For tax years beginning on or

after January 1, 1998, taxpayers who otherwise qualify for the job tax credit or the investment tax credits can qual-

ify for enhanced credit values from these tax credits. To qualify for the credit, the taxpayer must increase port traf-

fic (as measured in net tons, containers or twenty-foot equivalent units) by 10% above their base year amount.

For more details about this credit, call the Tax Conferee’s Office at 404-656-4171.

In claiming each credit, please attach the form used to compute the credit. Each of the tax credits is available to

offset income tax only, not net worth tax. Taxpayers must elect the investment tax credit, the optional investment

tax credit or the job tax credit for their operations in Georgia, but only one for a given project. For more details about

credits and the latest forms, please visit our website at: www2.state.ga.us/departments/dor/inctax/taxcredits.shtml

or call the department and request the publication, “Information on Income Tax Credits for Georgia Businesses.”

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Form It-611 - Georgia Income Tax Forms And General Instructions - Georgia Department Of Revenue - 1999 Page 7

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