Form It-711 - Partnership Income Tax Forms And General Instructions

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.

Description

Credit TypeCode

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

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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.

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

102

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.

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

103

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 and

48-7-40.1.

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

104

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.

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

105

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.

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

106

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.

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

107

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.

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

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provided by an employer to an employee as described in Section 132(f) of the IRC of 1986. For more information, refer to

O.C.G.A. § 48-7-29.3.

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

109

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.

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

110

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.

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

111

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.

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

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the manufacturing, warehousing and distribution, processing, telecommunications, tourism, or research and development

industries. The credit shall be 10% of the additional research expense over the “base amount”; provided that the business

enterprise for the taxable year claims and is allowed a research credit under I.R.C. Section 41.For more information, refer to

O.C.G.A. § 48-7-40.12. Excess research tax credit earned in taxable years beginning on or after January 1, 2012 may be used

to offset withholding as provided in the research tax credit regulation.

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

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certain conditions, and prior to January 1, 2009. 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.

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

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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.

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

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Financial Institutions Business Occupation Tax Return, Form 900. Effective on or after January 1, 2001, a depository finan-

cial 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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Form It-711 - Partnership Income Tax Forms And General Instructions - 2013 Page 10

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