Form It 611 - Corporation Income Tax Forms And General Instructions

Credit

Type Code

4. The additional $500.00 tax credit for an existing business enterprise is allowed to be claimed in the year the job is

created as opposed to the year after the job is created.

5. The additional new full-time jobs created in the 4 years after the initial year shall be eligible for the credit.

6. The credit must be claimed within 1 year instead of the normal 3 year statute of limitation period.

* For a business enterprise that creates a new year one under DCA regulations for any taxable year beginning on or after

January 1, 2012, in tier 1 counties, the business enterprise must increase employment by 2 or more new full-time jobs

for the taxable year to be eligible for the credit.

See the Job Tax Credit law (O.C.G.A. 48-7-40 and 48-7-40.1) and regulations for further information or refer to the

Department of Community Affairs website at: https://

104

Employer’s Credit for Purchasing Child Care Property. Employers who purchase qualified child care property will re-

ceive a credit totaling 100% of the cost of such property. The credit is claimed at the rate of 10% a year for 10 years. Any

unused credit may be carried forward for three years and the credit is limited to 50% of the employer’s Georgia income

tax liability for the tax year. Recapture provisions apply if the property is transferred or committed to a use other than child

care within 14 years after the property is placed in service. This credit should be claimed on Form IT-CCC100. For more

information, refer to O.C.G.A. §48-7-40.6.

105

Employer’s Credit for Providing or Sponsoring Child Care for Employees. Employers who provide or sponsor child

care for employees are eligible for a tax credit of up to 75% of the employers’ direct costs. The credit may not exceed

50% of the taxpayer’s total state income tax liability for the taxable year. Any credit claimed but not used in any taxable

year may be carried forward for five years from the close of the taxable year in which the cost of the operation was

incurred. This credit should be claimed on Form IT-CCC75. For more information, refer to O.C.G.A. §48-7-40.6.

106

Manufacturer’s Investment Tax Credit. Based on the same Tier Ranking as the Job Tax Credit program. It allows a

taxpayer that has operated an existing manufacturing or telecommunications facility in the state for the previous three

years to obtain a credit against income tax liability. The credit is calculated on expenses directly related to manufacturing

or to providing telecommunications services. Taxpayers must apply (use Form IT-APP) and receive approval before

claiming the credit on the appropriate tax return. A taxpayer may not claim the job tax credit or the optional investment tax

credit when claiming this credit for the same project. Companies must invest a minimum of $50,000 per project/location

during the tax year in order to claim the job tax credit or the optional investment tax credit when claiming this credit for the

same project. Companies must invest a minimum of $50,000 per project/location during the tax year in order to claim the

credit.

Tier Location

Tax Credit

Credit for Recycling, Pollution Control or Defense Conversion Activities

Tier 1

Tier 2

Tier 3 or 4

This credit should be claimed on Form IT-IC and accompanied by the approved Form IT-APP. For more information, refer

to O.C.G.A. §48-7-40.2, 40.3, and 40.4.

107

Optional Investment Tax Credit. Taxpayers qualifying for the investment tax credit may choose an optional investment

tax credit with the following threshold criteria:

Designated Area

Minimum Investment

Tax Credit

Tier 1

$ 5 Million

10%

Tier 2

$10 Million

Tier 3 or 4

$20 Million

Taxpayers must apply (use Form OIT-APP) and receive approval before they claim the credit on their returns. The credit

may be claimed for 10 years, provided the qualifying property remains in service throughout that period. A taxpayer must

choose either the regular or optional investment tax credit. Once this election is made, it is irrevocable. The optional

investment tax credit is calculated based upon a three-year tax liability average. The annual credits are then determined

using this base year average. The credit available to the taxpayer in any given year is the lesser of the following amounts:

(1) 90% of the excess of the tax of the applicable year determined without regard to any credits over the base year

average; or

(2) The excess of the aggregate amount of the credit allowed over the sum of the amounts of credit already used in

the years following the base year.

The credit must be claimed on Form IT-OIT. For more information, refer to O.C.G.A. §48-7-40.7, 40.8, and 40.9.

108

Qualified Transportation Credit. This is a credit of $25 per employee for any “qualified transportation fringe benefit”

provided by an employer to an employee as described in Section 132(f) of the IRC of 1986. For more information,

refer to O.C.G.A. §48-7-29.3.

109

Low Income Housing Credit. This is a credit against Georgia income taxes for taxpayers owning developments receiv-

ing the federal Low-Income Housing Tax Credit that are placed in service on or after January 1, 2001. Credit must be

claimed on Form IT-HC and accompanied with Federal Form K-1 from the providing entity and a schedule of the building

allocation. For more information, refer to O.C.G.A. §48-7-29.6.

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Form It 611 - Corporation Income Tax Forms And General Instructions - 2012 Page 16

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