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

TAX CREDITS

(continued)

Description

Credit Type Code

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

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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 converted 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.

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

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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.

New Facilities Job Credit. This is a tax credit for business enterprises that build new facilities or expand an existing facility

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

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

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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.

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

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ing 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.

Historic Rehabilitation Credit. A credit is available for the certified rehabilitation of a certified structure or historic home .

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Standards set by the Department 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

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Film Tax Credit (use code 133 if the credit is for a Qualified Interactive Entertainment Production Company).

This credit is equal to 20 percent of the base investment in the state, with an additional 10 percent credit for including a

qualified Georgia promotion. 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 withholding 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 or 30 days prior to the due date of

the return if earlier. 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.

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 donated 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 property for less than fair market value, up to a maximum credit of

$250,000 per individual, and $500,000 per corporation, and $1 million per partnership. Note, the partnership amount drops to

$500,000 for 2013 and later. However, the partners 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 por-

tion 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. 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

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

Qualified Education Expense Credit. This provides a tax credit for qualified educational expenses. The taxpayer must add

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back to Georgia taxable income that part of any federal charitable contribution deduction taken on a federal return for which

a credit is allowed. The aggregate amount of tax credits allowed is $58 million per tax year. Taxpayer 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.

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.

This provides a tax credit for the construction, purchase, or lease of clean energy property that

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Clean Energy Property Credit.

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 personreceiving 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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Form It-711 - Partnership Income Tax Forms And General Instructions - 2013 Page 11

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