2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue (Page 20 of 24) in pdf

TAX CREDITS

(continued)

Land Conservation Credit. This provides for an income tax credit for the qualified donation of real property that qualifies

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as conservation land. Property donated to increase building density levels or property that will be used, or is associated

with the playing of golf shall not be eligible. Taxpayers will be able to claim a credit against their state income tax liability

not exceeding 25 percent of the fair market value of the property, or 25 percent of the difference between the fair market

value and the amount paid to the donor if the donation is effected by a sale of for less than fair market value, up to a maxi-

mum credit of $250,000 per individual, and 500,000 per corporation, and $500,000 per partnership. However, the part-

ners of the partnership are subject to the per individual and per corporation limits. The amount of the credit used in any

one 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 ten succeeding years. The Department of Natural Resources will certify that such donated property is

suitable for conservation purposes. Please note that the Department of Natural Resources cannot accept new applica-

tions after December 31, 2016. A copy of this certificate must be filed with the taxpayer’s tax return in order to claim the

credit. This credit should be claimed on Form IT-CONSV. The taxpayer beginning January 1, 2012, has the option of sell-

ing the credit to a Georgia Taxpayer. For more information, refer to O.C.G.A. §48-7-29.12 and Regulation 560-7-8-.50.

For donations in taxable years beginning on or after January 1, 2013, to claim the credit Form IT-CONSV, the DNR

certification, the State Property Commission’s determination, and the appraisal must be attached to the income tax return;

and the taxpayer must add back to Georgia taxable income the amount of any federal charitable contribution related to the

Georgia conservation credit. For donations made on or after January 1, 2016 the aggregate amount of tax credits shall

not exceed $30 million per calendar year.

Qualified Education Expense Credit. This provides a tax credit for qualified educational expenses. The credit is allowed

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on a first come, first served basis. The aggregate amount of the tax credit allowed to all taxpayers cannot exceed $58

million per tax year. The taxpayer must add back to Georgia taxable income that part of any federal charitable contribution

deduction taken on a federal return for which a credit is allowed. Taxpayers must request preapproval to claim this credit

on Form IT-QEE-TP1. For more information, refer to O.C.G.A. § 48-7-29.16 and Revenue Regulation 560-7-8-.47.

Seed-Capital Fund Credit. This provides tax credits for certain qualified investments made on or after July 1, 2008.

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For more information, refer to O.C.G.A. §§ 48-7-40.27 and 48-7-40.28.

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Clean Energy Property Credit.

This provides a tax credit for the construction, purchase, or lease of clean energy pro-

perty that is placed into service in Georgia between July 1, 2008 and December 31, 2014. The aggregate amount of

tax credits allowed for both the clean energy property tax credit and the wood residuals tax credit is $2.5 million for

calendar years 2008, 2009, 2010, 2011, and $5 million for calendar years 2012, 2013, and 2014. A person receiving a

grant from GEFA under O.C.G.A. § 50-23-21 shall not be eligible to claim this tax credit with respect to the same clean

energy property. If a taxpayer is denied the Clean Energy Property Tax Credit because the credit cap has been reached,

that taxpayer shall be added to a waiting list and receive priority for the following years credit allocation. Credits claimed

in calendar years 2012-2014 must be taken in four equal installments over four years. Taxpayer must request preapproval

to claim these credits on Forms IT-CEP-AP. For more information, refer to O.C.G.A. § 48-7-29.14.

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Wood Residuals Credit. This provides a tax credit for transporting or diverting wood residuals to a renewable biomass

qualified facility on or after July 1, 2008. The aggregate amount of tax credits allowed for both the clean energy property

tax credit and the wood residuals tax credit is $2.5 million for calendar years 2008, 2009, 2010, 2011; and $5 million for

calendar years 2012, 2013, and 2014. Taxpayers must request preapproval to claim this credit on Form IT-WR-AP. For

more information, refer to O.C.G.A. § 48-7-29.14.

Qualified Health Insurance Expense Credit. Effective for taxable years beginning on or after January 1, 2009, an em-

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ployer (but only an employer who employs 50 or fewer persons either directly or whose compensation is reported on

Form 1099) is allowed a tax credit for qualified health insurance expenses in the amount of $250.00 for each employee

enrolled for twelve consecutive months in a qualified health insurance plan. Qualified health insurance means a high

deductible health plan as defined by Section 223 of the Internal Revenue Code. The qualified health insurance must be

made available to all employees and compensated individuals of the employer pursuant to the applicable provisions of

Section 125 of the Internal Revenue Code. The total amount of the tax credit for a taxable year cannot exceed the

employer’s income tax liability. The qualified health insurance premium expense must equal at least $250 annually.

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Quality Jobs Credit. For tax years beginning on or after January 1, 2009, a taxpayer creating at least 50 “new quality

jobs” may be entitled to a credit provided certain conditions are met. A “new quality job” means a job that: 1) Is located

in this state; 2) Has a regularwork week of 30 hours or more; 3) Is not a job that is or was already located in Georgia re-

gardless of which taxpayer the individual performed services for; 4) which pays at or above 110 percent of the average

wage of the county in which it is located; and 5) For a taxpayer that initially claimed the credit in a taxable year beginning

before January 1, 2012, the job has no predetermined end date. The credit amount varies depending upon the pay of the

new quality jobs. The credit must be claimed within 1 year instead of the normal 3 year statute of limitation period. The

taxpayer may claim the credit in years one through five for new quality jobs created in year one and may continue to claim

newly created new quality jobs through year seven and claim the credit on each of those new quality jobs for five years.

The credit may be used to offset 100 percent of the taxpayers Georgia income tax liability in the taxable year. Where the

amount of such credit exceeds the taxpayer’s tax liability in a taxable year, the excess may be taken as a credit against

such taxpayer’s quarterly or monthly withholding tax. To claim the credit against withholding, a taxpayer must file

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2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue Page 20

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