Georgia Partnership Income Tax Return Instructions For 2001 (Form 700) (Page 4 of 5) in pdf

TAX CREDITS

Cigarette Export Credit. This is a tax credit for the shipment of cigarettes manufactured anywhere in the United States to a

foreign country. For additional information refer to Georgia Code Section 48-7-40.20.

Diesel Particulate Emission Reduction Technology Equipment. This is a credit given to any person who installs diesel

particulate emission reduction equipment at any truck stop, depot, or other facility. For additional information refer to Georgia

Code Section 48-7-40.19.

Employer’s Credit for Approved Employee Retraining. Retraining programs must enhance the functional skill of employ-

ees 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 is computed on a Form IT-

RC. For a copy of the Retraining Tax Credit Procedures Guide, contact the Department of Technical and Adult Education at

(404) 679-1700. For additional information refer to Georgia Code Section 48-7-40.5.

Employer’s Credit for Basic Skills Education. Business enterprises may benefit by providing or sponsoring basic skills

education that enhances reading, writing or mathematical skills up to and including the 12th grade. This credit is computed on

Form IT-BE. For additional information refer to Georgia Code Section 48-7-41.

Employer’s Credit for Providing or Sponsoring Child Care for Employees. The child care credit is calculated in two

stages. The first stage offers a tax credit to an employer who provides or sponsors child care for employees. The second

stage allows for a credit for the taxable year in which the taxpayer first places in service qualified child care property and for

each of the ensuing nine taxable years. The credits are computed on Forms IT-CCC75 and IT-CCC100. For additional

information refer to Georgia Code Section 48-7-40.6.

Employer’s Job Tax Credit. This is a statewide jobs tax credit for certain business enterprises that have hired sufficient

numbers of employees. The credit has been modified by recent legislation. The major difference or enhancement is that the

taxpayer, in some instances, is now allowed to utilize this credit not only to offset income taxes, but also to receive a credit of

withholding dollars which would otherwise be payable to Georgia by an employer on a monthly or quarterly basis. Other major

differences include the fact that there are now four tiers in the state and the values for the credits have increased for each

county. Form IT-CA is used to compute the credit. For additional information contact the Office of the Commissioner of

Community Affairs at (404) 679-1592 and refer to Georgia Code Section 48-7-40.

Headquarters Tax Credit. This is a credit for a business enterprise that establishes its headquarters in this state or relocates

its headquarters into this state. For additional information refer to Georgia Code Section 48-7-40.17

Low and Zero Emission Vehicle Credit. For tax years beginning on or after January 1, 2001, this credit has been expanded.

This is a credit, of up to $2,500, for the purchase or lease of a new low emission vehicle or up to $5,000 for the purchase or

lease of a new zero emission vehicle. Additionally, there is a credit, up to $2,500 for the conversion of a standard vehicle to a

low emission vehicle or a zero emission vehicle. The low emission vehicle must operate exclusively on a fuel other than

traditional gasoline and/or diesel. A zero emission vehicle is a motor vehicle which has zero tailpipe and evaporative emis-

sions as defined under rules and regulations of the Board of Natural Resources and includes an electric vehicle whose drive

train is powered solely by electricity, provided electricity is not provided by any on-board combustion device. Certification

approved by the Environmental Protection Division of the Department of Natural Resources must be included with the return

for any credit claimed under this provision. Also for any business enterprise, a $2,500 credit has been added for the purchase

or lease of each electric vehicle charger that is located in Georgia. The area where a vehicle must be registered and where

electric chargers must be located has been expanded from a covered area, which was only the metro area, to the entire state.

Finally, businesses such as fleet operators, that are mandated to use low emission vehicles, now also qualify. For additional

information refer to Georgia Code Section 48-7-40.16.

Low Income Housing Credit. A tax credit called the Georgia Housing Tax Credit. This is a credit against Georgia income

taxes for taxpayers owning an interest in a federally qualified housing project in Georgia. The credit is equal to the portion of

the federal housing tax credit which is related to Georgia projects. For additional information refer to Georgia Code Section

48-7-29.6.

Manufacturer’s Investment Tax Credit. This credit is based on the same tiers as the Employer’s Jobs Tax Credit and

requires certain minimum expenditures in order for them to be claimed against the income tax liability. The Credit may be

claimed beginning with the tax year immediately following the year in which the minimum expenditures for investment property

have occurred. To be eligible, 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. For additional information refer to

Georgia Code Section 48-7-40.2, 40.3, and 40.4.

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Georgia Partnership Income Tax Return Instructions For 2001 (Form 700) Page 4

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