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

TAX CREDITS

(continued)

Credit Type Code

Description

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

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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 employer

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(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.

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

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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 regular work week of 30 hours or more; 3) Is not a job that is or was already located in Georgia

regardless 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 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 Form IT-WH at least 30 days prior to

filing the return on which the applicable jobs are claimed or 30 days prior to the due date of the return if earlier. Once the

income tax return is filed, the Department has 120 days to review the withholding credit being claimed and notify the

business of the approved credit and when and how it may be claimed. For more information, refer to O.C.G.A. § 48-7-40.17.

Alternate Port Activity Tax Credit. O.C.G.A. § 48-7-40.15 A provides an alternate port tax credit. The definitions of “base year

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port traffic” and “port traffic” include imports and exports of product. It allows the credit to any business enterprise located in

a tier two or three county established pursuant to O.C.G.A. § 48-7-40 and in a less developed area established pursuant to

O.C.G.A. § 48-7-40.1 and which qualifies and receives the tax credit under O.C.G.A. § 48-7-40.1 and which:

1. Consists of a distribution facility of greater than 650,000 square feet in operation in this state prior to December 31,2008;

2. Distributes product to retail stores owned by the same legal entity or its subsidiaries as such distribution facility; and

3. Has a minimum of 8 retail stores in this state in the first year of operations.

The business enterprise shall not be authorized to claim both this credit and the port credit provided in O.C.G.A. § 48-7-

40.15, unless such business enterprise has increased its port traffic of products during the previous twelve month

period by more than 20 percent above its base year port traffic, and also has increased employment by 400 or more no

sooner than January 1, 1998. The tax credit, in addition to the tax credit under O.C.G.A. § 48-7-40, shall be limited to an

amount not greater than 50 percent of the taxpayer’s state income tax liability which is attributable to income derived from

operations in this state for that taxable year. No credit may be claimed and allowed under this code section for any jobs

created on or after January 1, 2015.

This provides a 35% credit for amounts invested in a registered business. The aggregate

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Qualified Investor Tax Credit.

amount of credit allowed an individual person for one or more qualified investments in a single taxable year, whether made

directly or by a pass-through entity and allocated to such individual, shall not exceed $50,000.00. The credit is available for

investments made in 2011,2012, 2013, 2014, and 2015. The credit is claimed 2 years later, in 2013, 2014, 2015, 2016, and

2017 respectively. The aggregate amount of credits allowed is $10 million for investments made in calendar years 2011,

2012, and 2013; and $5 million for investments made in calendar years 2014 and 2015. The taxpayer must get approval as

provided in O.C.G.A. § 48-7-40.30 before claiming the credit. This became effective January 1, 2011. See Code Section 48-

7-40.30 and Regulation 560-7-8-.52 for more information.

For taxable years beginning on or after

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Film Tax Credit for A Qualified Interactive Entertainment Production Company.

January 1, 2013, the aggregate amount of film tax credits allowed for qualified interactive entertainment production

companies and their affiliates which are qualified interactive entertainment production companies shall not exceed $25

million. When this $25 million cap is reached, the film tax credit for qualified interactive entertainment companies and

their affiliates which are qualified interactive entertainment production companies shall expire. The maximum credit for

any qualified interactive entertainment production company and its affiliates which are qualified interactive entertainment

production companies is $5 million. The credits are allowed on a first-come first-served basis based on the date the film tax

credits are claimed.

NOTE: The credit type code numbers referenced above are subject to change from year to year.

Please review the codes carefully to ensure you list the correct code number.

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

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Form It-711 - Partnership Income Tax Forms And General Instructions - 2013 Page 12

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