Georgia Form 700 - Partnership Tax Return - 2006 (Page 11 of 12) in pdf

TAX CREDITS

(continued)

Credit Type Code

Description

116

Low-Emission Vehicle Credit. This is a credit of the lesser of 10 percent of the cost of the vehicle or $2,500 for

the purchase or lease of a new low-emission vehicle. There is also a credit for the conversion of a standard vehicle

to a low-emission vehicle which is equal to 10 percent of the cost of conversion, not to exceed $2,500 per con-

verted vehicle. Certification approved by the Environmental Protection Division of the Georgia Department of

Natural Resources must be included with the return in order to claim the credit. A low emission vehicle is defined

as an “alternative fuel” vehicle and does not include any gasoline powered vehicles or hybrids. Low speed vehicles

do not qualify for this credit.For more information, refer to O.C.G.A. § 48-7-40.16.

117

Zero-Emission Vehicle Credit. This is a credit of the lesser of 20 percent of the cost of the vehicle or $5,000,

on the purchase or lease of a new zero-emission vehicle. There is also a credit for the conversion of a standard

vehicle to a zero-emission vehicle which is equal to 10 percent of the cost of conversion, not to exceed $2,500

per converted vehicle. Certification approved by the Environmental Protection Division of the Department of

Natural Resources must be included with the return in order to claim the credit. A zero-emission vehicle is a motor

vehicle that has zero tailpipe and evaporative emissions as defined by the Board of Natural Resources and

includes electric vehicles whose drive train is powered solely by electricity, provided the electricity is not generated

by an on-board combustion device. Low speed vehicles do not qualify for this credit. For more information, refer

to O.C.G.A. § 48-7-40.16.

118

New Manufacturing Facilities Job Credit. This is a tax credit for business enterprises that build new manufactur-

ing facilities in Georgia. The credit is $5,250 per job created. For more information refer to O.C.G.A. § 48-7-40.24.

119

Electric Vehicle Charger Credit. This is a credit for a business enterprise which purchases an electric vehicle

charger located in Georgia. The credit allowed is the lesser of 10 percent of the cost of the charger or $2,500.

For more information, refer to O.C.G.A. § 48-7-40.16.

120

New Manufacturing Facilities Property Credit. This is an incentive for a manufacturer who has operated a

manufacturing facility in this state for at least three years and who spends $800 million on a new manufacturing

facility in Georgia. The total credit allowed is $50 million. For more information, refer to O.C.G.A. § 48-7-40.25.

121

Historic Rehabilitation Credit. A credit of up to $5,000 is available for the certified rehabilitation of a certified

structure or historic home for taxable years beginning on or after January 1, 2004. Standards set by the Depart-

ment of Natural Resources must be met. The credit must be claimed on Form IT-RHC. For more information,

refer to O.C.G.A. § 48-7-29.8 or

122

Film Tax Credit. This credit is equal to 9 percent of the base investment in the state, with additional percentages

of: 3 percent for base investment in a Tier 1 or Tier 2 county; 3 percent for wages paid to Georgia residents; and

2 percent for spending at least $20 million on multiple television projects. Production companies which have at

least $500,000 of qualified expenditures in a state certified production may claim this credit by submitting Form

IT-FC along with certification from the Film Office of the Georgia Department of Economic Development. This

credit may be claimed against 100 percent of the production company’s income tax liability and to offset with-

holding taxes. To claim a credit against withholding, the production company must submit Form IT-WH at least

30 days prior to filing the return on which the credit will be claimed. The Department will review the credit and

notify the company of how it may be used. For more information, refer to O.C.G.A. § 48-7-40.26.

123

Teleworking Credit. Employers who permit their employees to telework will be allowed an income tax credit for

expenses incurred up to $1,200 per participating employee. The percentage of the credit will range from 100%,

75% and 25% depending upon whether the business is located in a federal “nonattainment” area, for eligible

expenses pursuant to a telework agreement and number of telework days claimed per month. Employers will

also be allowed a credit for conducting a telework assessment in the year of implementation for 100% of the cost

of preparing the assessment, up to a maximum of $20,000 per employer. However, such costs shall not be eligible

for the credit if the employer has already deducted such expenses from income in any tax year. The aggregate

maximum that can be claimed for this credit is $2 million. This credit becomes effective July 1, 2007 and is only

available for taxable years 2008 and 2009. Costs incurred between July 1, 2007 and January 1, 2008 will be

treated as being incurred on January 1, 2008. For more information, refer to O.C.G.A. § 48-7-29.10.

124

Land Conservation Credit. This is an income tax credit for the donation of real property that qualifies as conser-

vation land pursuant to Chapter 22 of Title 36. Property donated to increase building density levels, or used or

associated with playing golf, is not eligible. Taxpayers can claim a credit against their state income tax liability not

exceeding 25 percent of the fair market value of the donated property up to $250,000 per individual and $500,000

per corporation. The amount of the credit used in any year may not exceed the taxpayer’s income tax liability for

that taxable year. Any unused portion of the credit may be carried forward for five succeeding years. Fair market

value will be established pursuant to O.C.G.A. § 48-5-2(3) for the year in which the donation occurrs. The Depart-

ment of Natural Resources will certify that the donated property is suitable for conservation purposes. A copy of

this certificate must be filed with the taxpayer’s tax return in order to claim the credit. For more information, refer

to O.C.G.A. § 48-7-29.10

For more details about credits and to obtain the latest forms, visit our website at:

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Georgia Form 700 - Partnership Tax Return - 2006 Page 11

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