Georgia Form 700 - Partnership Tax Return - 2006 (Page 10 of 12) in pdf

TAX CREDITS

Pass-Through Credits from Ownership of Sole Proprietorship, S Corp, LLC, LLP or Partnership Interest

NOTE: The credit type code numbers referenced below are subject to change from year to year. Please review the codes

carefully to ensure you list the correct code number.

Credit Type Code

Description

101

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

education that enhances reading, writing, or mathematical skills up to and including the 12th grade or classes

required to receive a GED certificate. The program is administered by the Department of Technical and Adult

Education. This credit should be claimed on Form IT-BE. For more information, refer to O.C.G.A. § 48-7-41.

102

Employer’s Credit for Approved Employee Retraining. This credit is for retraining programs that enhance the

functional skills of employees otherwise unable to function effectively on the job due to skill deficiencies or who

would be displaced because such deficiencies would inhibit their use of new technology. For more information,

refer to O.C.G.A. § 48-7-40.5.

103

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

sufficient numbers of employees. This credit allows certain business enterprises to offset income taxes and, in

some instances, receive a credit of withholding dollars which would otherwise be paid in accordance with O.C.G.A. §

48-7-103. There are currently four tiers in the state and the credit values are different for each county. For more

information, refer to O.C.G.A. § 48-7-40.

104

Employer’s Credit for Purchasing Child Care Property. This credit is allowed when an employer places into

service qualified child care property. The credit cannot equal more than 50 percent of the employer’s Georgia

income tax liability for the tax year. This credit must be claimed on Form IT-CCC100. For more information,

refer to O.C.G.A. § 48-7-40.6.

105

Employer’s Credit for Providing or Sponsoring Child Care for Employees. This is a credit for employer-

provided or sponsored child care. The credit cannot be more than 50 percent of the taxpayer’s total state income

tax liability for that taxable year. This credit must be claimed on Form IT-CCC75. For more information, refer to

O.C.G.A. § 48-7-40.6.

106

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

Credit and requires certain minimum expenditures. Employers must purchase or acquire qualified investment

property pursuant to an approved project plan. For more information, refer to O.C.G.A. §§ 48-7-40.2, 40.3, and 40.4.

107

Optional Investment Tax Credit. This credit is similar to the Manufacturer’s Investment Tax Credit; however, there

are higher spending thresholds as well as a ten-year calculation. For more information, refer to O.C.G.A. §§ 48-7-

40.7, 40.8, and 40.9.

108

Qualified Transportation Credit. This is a credit of $25 per employee for any “qualified transportation fringe

benefit” provided by an employer to an employee as described in Section 132(f) of the IRS Code of 1986. For more

information, refer to O.C.G.A. § 48-7-29.3.

109

Low Income Housing Credit. This is a credit against Georgia income taxes for taxpayers owning developments

receiving the federal Low-Income Housing Tax Credit that are placed in service on or after January 1, 2001. Credit

must be claimed on Form IT-HC and accompanied with Federal Form K-1 from the providing entity. For more

information, refer to O.C.G.A. § 48-7-29.6.

110

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 more information, refer

to O.C.G.A. § 48-7-40.19.

111

Business Enterprise Vehicle Credit. This is a credit given to a business enterprise for the purchase of a motor

vehicle that is used exclusively to provide transportation for its employees. In order to qualify, a business enterprise

must certify that each vehicle carries an average daily ridership of not less than four employees for an entire taxable

year. This credit cannot be claimed if the low and zero emission vehicle credit was claimed at the time the vehicle was

purchased. For more information, refer to O.C.G.A. § 48-7-40.22.

112

Research Tax Credit. This credit is for expenses resulting from research conducted in Georgia by businesses

engaged in the manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research

and development industries. For more information, refer to O.C.G.A. § 48-7-40.12.

113

Headquarters Tax Credit. This credit is for businesses establishing or relocating their headquarters to Georgia

under certain conditions. The credit may be used to offset 100 percent of the Georgia income tax liability in a

taxable year. If the credit exceeds the tax liability in a taxable year, the excess may be taken as a credit against

withholding tax. For more information, refer to O.C.G.A. § 48-7-40.17.

114

Port Activity Tax Credit. This credit is for businesses engaged in manufacturing, warehousing and distribution,

processing, telecommunications, tourism, or research and development that have increased their port traffic

tonnage through Georgia ports in the previous 12 months. For more information, refer to O.C.G.A. § 48-7-40.15.

115

Bank Tax Credit. All financial institutions that conduct business or own property in Georgia are required to file a

Georgia Financial Institutions Business Occupation Tax Return, Form 900. Effective on or after January 1, 2001,

a depository financial institution with a Sub S election can pass through the credit to its shareholders on a pro rata

basis. For more information, refer to O.C.G.A. § 48-7-29.7.

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Georgia Form 700 - Partnership Tax Return - 2006 Page 10

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