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

NEW INFORMATION

2013 Legislation

HB 266 (O.C.G.A. § 48-1-2 and 48-7-40.12) There are

becomes ineligible or for any other reason the qualified

two sections of this bill (Section 1 and Section 3) that

school or program elects not to continue disbursement

affect income tax. Section 1 is applicable to taxable

of the multiyear scholarship or tuition grant to the desig-

years beginning on or after January 1, 2012 (thus it also

nated student for all the projected years, then the quali-

includes the 2013 tax year). The bill adopts certain pro-

fied school or program shall immediately return the re-

visions of all federal laws related to the computation of

maining funds to the SSO.

Federal Adjusted Gross Income (Federal Taxable In-

come for non-individuals) that were enacted on or be-

·Specifies that once the SSO designates obligated rev-

fore January 3, 2013. Please see the Federal Tax

enues for specific student recipients, in the case of

Changes section for more information.

multiyear scholarships or tuition grants for which the

SSO distributes the obligated and designated revenues

Section 3 clarifies that any tax credits earned for quali-

to a qualified school or program annually rather than in

fied research expenses under Code Section 48-7-40.12

one disbursement, if the designated student becomes

in any taxable year beginning before January 1, 2012,

ineligible or for any other reason the SSO elects not to

and any carryforward attributable thereto, are governed

continue disbursement for all years, then the SSO shall

by such Code section in effect for the taxable year in

designate any remaining previously obligated revenues

which the credit was earned. Section 3 of House Bill

for a new specific student recipient on or before the end

266 became effective upon its approval by the Gover-

of the following calendar year.

nor on March 5, 2013 and is applicable to all taxable

years beginning on or after January 1, 2012.

·Provides that each SSO in awarding scholarships or

tuition grants shall consider financial needs of students

HB 283 (O.C.G.A. §§ 20-2A-1, 20-2A-2, 20-2A-3, and

based on all sources.

48-7-29.16) The income tax portions of this bill (Sec-

tions 33A through 33D) make changes to the Qualified

Provides that until obligated revenues are designated

Education Expense Credit as follows:

for specific students, the SSO shall hold the obligated

revenues in a bank or investment account owned by

Code Section 20-2A-1:

the SSO and over which it has complete control.

·Changes the definition of “eligible student”.

·Specifies that the audit must verify that the SSO has

Code Section 20-2A-2:

complied with all requirements of Code Section 20-2A-

·Modifies the percentage amount that student scholar-

2, including but not limited to financial requirements.

ship organizations (SSOs) must obligate from their rev-

Each SSO shall provide a copy of the audit to the De-

enue received from donations for scholarships or tu-

partment in accordance with Code Section 20-2A-3.

ition grants based on the donation revenue received.

·Provides that notwithstanding Code Sections 20-2A-7,

·Provides that on or before the end of the calendar year

48-2-15, 48-7-60, and 48-7-61, if the copy of the audit

following the calendar year in which an SSO receives

submitted fails to verify that the SSO obligated its an-

revenues from donations and obligates them for the

nual revenue received from donations for scholarships

awarding of scholarships or tuition grants, the SSO shall

or tuition grants as required by the statute; that obligated

designate the obligated revenues for specific student

revenues were designated for specific student recipi-

recipients. Once the SSO designates obligated rev-

ents within the statutory time frame; and that all obli-

enues for specific student recipients, in the case of

gated and designated revenue distributed to a qualified

multiyear scholarships or tuition grants, the SSO may

school or program for the funding of multiyear scholar-

distribute the entire obligated and designated revenues

ships or tuition grants complied with all applicable De-

to a qualified school or program to be held in accor-

partment rules, then the Department shall post on its

dance with the Department rule for distribution to the

website the details of such failure to verify. Until any such

specified recipients during the years in which the recipi-

noncompliant SSO submits an amended audit, which,

ents are projected in writing by the private school to be

to the satisfaction of the Department, contains the re-

enrolled at the qualified school or program. In making a

quired verifications, the Department shall not preapprove

multiyear distribution to a qualified school or program,

any contributions to the noncompliant SSO.

the SSO shall require that if the designated student

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Form It-711 - Partnership Income Tax Forms And General Instructions - 2013 Page 3

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