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Form IT-APP

GENERAL INSTRUCTIONS

(Rev. 10/10)

Manufacturing Facility: The investment tax credit may be claimed by Taxpayer only for the construction or expansion of a manufacturing facility.

“Manufacturing facility” is defined in Regs. 560-7-8-.37(1). Provide the requested information for the manufacturing facility for which taxpayer is

claiming the credit.

County: The basic rate of credit varies according to whether the manufacturing facility for which the qualified investment property was purchased

or acquired is located in a county that is designed as a tier 1, tier 2, or tier 3 or 4 less developed area. List the county in which the manufacturing

facility is located and the tier of the county.

Year Claimed: Taxpayer may begin to claim the credit for qualified investment property purchased or acquired pursuant to the project plan in the

year immediately following the first taxable year in which the minimum threshold amount is purchased or acquired by Taxpayer OR claim the entire

credit in the year following the year in which the project is completed. List the year(s) in which Taxpayer intends to claim the credit.

Eligibility: To be eligible to cliam the credit, Taxpayer must have operated an existing manufacturing facility (or a related manufacturing support

facility) in Georgia for the immediately preceding three (3) years AND must have filed all required state tax returns. “Manufacturing support facility”

is defined in Regs. 560-7-8-.37(1). Provide the requested information for the facility on which Taxpayer bases its eligibility for the credit.

Project: Taxpayer must purchase or acquire qualified investment property pursuant to a project plan. A “project” is a planned undertaking involv-

ing the capitalized purchase or acquisition of qualified investment property for the construction of an additional manufacturing facility or the expan-

sion of an existing manufacturing facility. A project which is a planned expansion of an existing manufacturing facility must result in an expansion

of Taxpayer’s asset base and be reasonably related or necessary to Taxpayer’s manufacturing process. “ Expansion is defined in Regs.”

560-7-8-.37(1).

Project Commencement: Commencement of a project means the date that funds were first used to purchase or acquire qualified investment

property pursuant to a project plan. Only qualified investment property which is purchased or acquired by Taxpayer after the eligibility requirement

is met may be used to compute the tax credit. Qualified investment property purchased or acquired by Taxpayer in taxable years prior to establish-

ing eligibility may not be claimed for those years by filing an amended tax return.

Project Completion: Taxpayer must submit an application requesting approval of the project plan within thirty (30) days of the completion of the

project. In the event Taxpayer is unable to submit an application for approval of project plan within thirty (30) days of the completion of a project,

Taxpayer may petition the Commissioner for express written approval to file an application after the thirty (30) day period has passed. The

duration of a project shall not exceed three (3) years unless expressly approved in writing by the Commissioner.

Claiming Credit Before Project Completed: If Taxpayer elects to claim the credit before the completion of the project, but after the purchase or ac-

quisition of qualified investment property in excess of the minimum threshold amount, Taxpayer may submit an application for approval of the

project plan along with the tax return on which the credit will be claimed. This preliminary application must be amended within thirty (30) days of

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Coordination of Credits: Except as authorized under O.C.G.A. Section 48-7-40.2(d)(2), which authorizes certain taxpayers in tier 1 counties to

claim both the job tax credit and the investment tax credit for a given project, Taxpayers who claim the investment tax credit for a given project in

any taxable year are not eligible for the job or optional investment tax credit for the same project in any subsequent year.

Taxpayer’s application for approval of project plan must include a detailed narrative which describes the project and how the qualified invest-

ment property purchased or acquired pursuant to the project plan is related to Taxpayer’s manufacturing operation. Regs. 560-7-8-.37(3). If at

any time Taxpayer amends or modifies a project plan that has received the Commissioner’s approval, Taxpayer must submit a supplemental narra-

tive detailing the amendments or modifications to the approved project plan within thirty (30) days of the amendment or modification.

The term ”qualified investment property” (or QIP) means all real and personal property purchased or acquired by a taxpayer for use in the

construction of an additional manufacturing facility to be located in Georgia or the expansion of an existing manufacturing facility located in

Georgia, including, but not limited to, amounts expended on land acquisition, improvements, buildings, building improvements, and machinery

and equipment to be used in the manufacturing facility, which is reasonably related or necessary to Taxpayer’s manufacturing process. In the

event that the QIP purchased or acquired by Taxpayer consists of recycling machinery or equipment, a recycling manufacturing facility, pollution

control or prevention machinery and equipment, a pollution control or prevention facility, or is used in the conversion from defense to domestic

production, then the QIP will be subject to a higher rate of credit which varies according to whether the property is purchased or acquired for a

facility located in a county designated as a tier 1, tier 2, or tier 3 or 4 less developed area.

The Commissioner reserves the right to review each

purchase or acquisition or property for which Taxpayer intends to claim a credit. Please indicate in the spaces provided whether any of the

aforementioned types of QIP eligible for the higher rate of credit have been purchased or acquired pursuant to the project plan.

Taxpayers who purchase or acquire pollution control or prevention machinery or equipment, or a pollution control or prevention facility, must attach

a certification from the Department of Natural Resources that all pollution control or prevention machinery or equipment that is a basis for a credit

is necessary and adequate for the purposes intended. Regs. 560-7-8-.37(8).

If office space used to house support staff in a building that is part of a recycling manufacturing facility exceeds 10 percent of the building’s total

space, then the building will not be considered a component of the recycling manufacturing facility. The building and any improvements to the

building will be subject to the basic rate of credit for QIP. Only recycling machinery or equipment located in the building will be subject to the

higher rate of credit for QIP. Regs. 560-7-8-.37(2).

Taxpayer must attach a Schedule of Qualified Investment Property containing the following information: (1) type of property, (2) quantity of

property; (3) date of purchase or acquisition: (4) basis in property, if different from its capitalized cost: (5) the fair market value of all leased

property which may be taken as QIP and (6) capitalized cost of property.

Upon approval by the Commissioner, a signed copy of Form IT-APP will be returned to you. Please attach copies of the approval Forms IT-APP

and IT-IC to your Georgia Income tax return when claiming the investment tax credit.

Form It-App - Application For Approval Of Project Plan Manufacturer'S Investment Tax Credit Page 2

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