Form It 611 - Corporation Income Tax Forms And General Instructions

TAX CREDITS

(continued)

Description

Credit

Type Code

122

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

tion companies which have at least $500,000 of qualified expenditures in a state certified production may claim this

credit. Certification must be approved through the Georgia Department of Economic Development. The credit is equal to

20 percent of the base investment in the state, with an additional 10 percent for including a qualified Georgia promotion

in the state certified production. There are special calculation provisions for production companies whose average

annual total production expenditures in this state exceeded $30 million for 2002, 2003 and 2004. This credit may be

claimed against 100 percent of the production company’s income tax liability, while any excess may be used to offset the

production company’s withholding taxes. To claim the credit against withholding, the production company must file

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. Once the income tax return is filed, the Department has 120 days to review the withholding credit

being claimed and notify the production company of the approved credit and when and how it may be claimed. The

production company also has the option of selling the tax credit to a Georgia taxpayer. A credit claimed but not used in

any taxable year may be carried forward for 5 years from the close of the taxable year in which the investment occurred.

This credit should be claimed on Form IT-FC, along with certification from the Film Office of the Georgia Department of

Economic Development. For more information, refer to O.C.G.A. §48-7-40.26.

124

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

fies 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 $500,000 per partnership. 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 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. 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 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 tax credit.

125

Qualified Education Expense Credit. This provides a tax credit for qualified educational expenses. A corporation is elig-

ible for a credit amount that can equal up to 75% of its income tax liability. The credit is allowed on a first come, first ser-

ved 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.

126

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

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

127

Clean Energy Property Credit.

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

property 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.

128

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.

Page 20

Form It 611 - Corporation Income Tax Forms And General Instructions - 2013 Page 20

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