Form It 611 - Corporation Income Tax Forms And General Instructions

TAX CREDITS

Description

Credit

Type Code

101

Employer’s Credit for Basic Skills Education. Businesses which provide or sponsor basic skills education that en-

hances reading, writing, or mathematical skills up to and including the 12th grade, or classes to receive a GED certif-

icate, may receive a tax credit. The program is administered by the Department of Technical and Adult Education. This

credit should be claimed on Form IT-BE. For more information, refer to O.C.G.A. §48-7-41.

102

Employer’s Credit for Approved Employee Retraining.

The retraining tax credit allows employers to claim certain costs

of retraining employees to use new equipment, new technology, or new operating systems. For tax years beginning on

or after January 1, 2009, approved retraining shall not include any retraining on commercially, mass produced software

packages for word processing, data base management, presentations, spreadsheets, e-mail, personal information

management, or computer operating systems except a retraining tax credit shall be allowable for those providing

support or training on such software. The credit is calculated at 50% of the direct costs of retraining full-time employees,

up to $500 per employee per approved retraining program per year. For tax years beginning on or after January 1, 2009,

there is a cap of $1,250 per year per full-time employee who has successfully completed more than one approved

retraining program. The credit may be utilized up to 50% of the taxpayer’s total state income tax liability for a tax year.

For tax years beginning on or after January 1, 2009, the credit must be claimed within 1 year instead of the normal

3 year statute of limitation period. Credits claimed but not used may be carried forward for 10 years. For a copy

of the Retraining Tax Credit Procedures Guide, contact the Department of Technical and Adult Education at

404-253-2800 or visit their website at: This credit should be claimed on

Form IT-RC, with Program Completion forms signed by Department of Technical and Adult Education personnel

attached. For more information, refer to O.C.G.A. §48-7-40.5.

103

Employer’s Jobs Tax Credit. Employer’s Jobs Tax Credit. This credit provides for a statewide job tax credit for any bus-

iness or headquarters of any such business engaged in manufacturing, warehousing and distribution, processing,

telecommunications, broadcasting, tourism, or research and development industries, but does not include retail busi-

nesses. If other requirements are met, job tax credits are available to businesses of any nature, including retail busi-

nesses, in counties recognized and designated as the 40 least developed counties.

Tier Designation

County Rankings

New Jobs Created

Credit Amount

Tier 1

1 through 71

5 or more*

$ 3,500

Tier 2

72 through 106

10 or more

$ 2,500

Tier 3

107 through 141

15 or more

$ 1,250

Tier 4

142 through 159

25 or more

750

Credits similar to the credits available in Tier 1 counties are potentially available to companies in certain less developed

census tracts in the metropolitan areas of the state. Note that average wages for the new jobs must be above the ave-

rage wage of the county that has the lowest average wage of any county in the state. Also employers must make health

insurance available to employees filling the new full-time jobs. Employers are not, however, required to pay all or part of

the cost of such insurance unless this benefit is provided to existing employees. For taxpayers that initially claimed this

credit for any taxable year beginning before January 1, 2009, credits are allowed for new fulltime employee jobs for five

years in years two through six after the creation of the jobs. In Tier 1 and Tier 2 counties, the total credit amount may offset

up to 100% of a taxpayer’s state income tax liability for a taxable year. In Tier 3 and Tier 4 counties, the total credit amount

may offset up to 50% of a taxpayer’s state income tax liability for a taxable year. In Tier 1 counties and less developed

census tracts only, credits may also be taken against a company’s income tax withholding. To claim the credit against

withholding, a business 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. A credit claimed but not used in any taxable year may be carried forward for 10 years from the

close of the taxable year in which the qualified jobs were established. The measurement of new full-time jobs and

maintained jobs is based on average monthly employment. Georgia counties are re-ranked annually based on updated

statistics. This credit should be claimed on Form IT-CA. An additional $500 per job is allowed for a business locating

within a county that belongs to a Joint Development Authority per O.C.G.A. §36-62-5.1.

An existing business enterprise as

defined in O.C.G.A. §48-7-40 qualifies for an additional $500 credit for each new fulltime job provided all conditions are

met. For taxpayers that create a new year one under DCA regulations for any taxable year beginning on or after January

1, 2009 the following changes apply:

1. The definition of a business enterprise now also includes a business or headquarters of a business that provides

services for the elderly and persons with disabilities (only for the jobs credit provided pursuant to O.C.G.A. 48-7-40).

2. The credit may be claimed beginning with the year the job is created as opposed to the year after the job is created.

3. The credit may be claimed against withholding tax for a business enterprise engaged in a competitive project

(as certified by the Department of Economic Development) which is located in a tier 2, 3, or 4 county.

Page 16

Form It 611 - Corporation Income Tax Forms And General Instructions - 2012 Page 15

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