Form It 611 - Corporation Income Tax Forms And General Instructions

TAX CREDITS

(continued)

Description

Credit

Type Code

115

Bank Tax Credit. All financial institutions that conduct business or own property in Georgia are required to file a

Georgia Financial Institutions Business Occupation Tax Return, Form 900. Effective on or after January 1, 2001, a

depository financial institution with a Sub S election can pass through the credit to its shareholders on a pro rata basis.

For more information, refer to O.C.G.A. §48-7-29.7.

116

Low Emission Vehicle Credit. This is a credit, the lesser of 10% of the cost of the vehicle or $2,500, for the purchase or

lease of a new low emission vehicle. Also there is a credit for the conversion of a standard vehicle to a low emission

vehicle which is equal to 10% of the cost of conversion, not to exceed $2,500 per converted vehicle. Certification appr-

oved by the Environmental Protection Division of the Department of Natural Resources must be included with the

return for any credit claimed under this provision. A statement from the vehicle manufacturer is not acceptable.

A low emission vehicle is defined as an “alternative fuel” vehicle and does not include any gasoline powered vehicles

(i.e. hybrids). A “low speed vehicle” does not qualify for this credit. For more information, refer to O.C.G.A. §48-7-40.16.

117

Zero Emission Vehicle Credit. This is a credit, the lesser of 20% of the cost of the vehicle or $5,000, for the purchase or

lease of a new zero emission vehicle. Also there is a credit for the conversion of a standard vehicle to a zero emission

vehicle which is equal to 10% of the cost of conversion, not to exceed $2,500 per converted vehicle. Certification appr-

oved by the Environmental Protection Division of the Department of Natural Resources must be included with the

return for any credit claimed under this provision. A statement from the vehicle manufacturer is not acceptable.

A zero emission vehicle is a motor vehicle which has zero tailpipe and evaporative emissions as defined under rules

and regulations of the Board of Natural Resources and includes an electric vehicle whose drive train is powered solely

by electricity, provided the electricity is not generated by an on-board combustion device. A “low speed vehicle” does not

qualify for this credit. For more information, refer to O.C.G.A. §48-7-40.16.

118

New Facilities Jobs Credit. For business enterprises who first qualified in a taxable year beginning before January

1, 2009, $450 million in qualified investment property must be purchased for the project within a six-year period. The

manufacturer must also create at a minimum 1,800 new jobs within a six-year period and can receive credit for up to a

maximum of 3,300 jobs. For business enterprises who first qualify in a taxable year beginning on or after January 1, 2009;

the definition of business enterprise is any enterprise or organization which is registered and authorized to use the federal

employment verification system known as “E-Verify” or any successor federal employment verification system and is en

gaged in or carrying on any business activities within this state. Retail businesses are not included in the definition of a

business enterprise; (2) the business enterprise must meet the job creation requirement and either the qualified invest

ment requirement, $450 million qualified investment peoperty, or the payroll requirement, $150 million in total annual

Georgia W-2 reported payroll within the six-year period. The business enterprise can receive credit for up to a maximum

of 4,500 jobs.

For tax years beginning on or after January 1, 2012, the job creation requirement is extended if certain

amounts of qualified investment property are purchased. After an affirmative review of their application by a panel, the

business enterprise is rewarded with the new job tax credit. The credit is $5,250 per job created. The credit offsets income

tax liability and any excess credit may be used to offset withholding taxes. There is a 10-year carryforward of any unused

tax credit. For more information, refer to O.C.G.A. §48-7-40.24.

119

Electric Vehicle Charger Credit. This is a credit for a business enterprise for the purchase of an electric vehicle charger

located in the State of Georgia. The credit allowed is the lesser of 10% of the cost of the charger or $2,500. For more

information, refer to O.C.G.A. §48-7-40.16.

120

New Manufacturing Facilities Property Credit. This is an incentive for a manufacturer who has operated a manufacturing

facility in this state for at least 3 years and who spends $800 million on a new manufacturing facility in this state. There

is also the requirement that the number of full-time employees equal or exceed 1,800. However, these do not have to be

new jobs to Georgia. An application is filed which a panel must approve. The benefit awarded to a manufacturer is a

credit against taxes equal to 6 percent of the cost of all qualified investment property purchased or acquired. The total

credit allowed is $50 million. The credit offsets income tax liability and any excess may be used to offset withholding

taxes. There is a 15-year carry forward of any unused tax credit. For more information, refer to O.C.G.A. §48-7-40.25.

121

Historic Rehabilitation Credit. A credit will be available for the certified rehabilitation of a certified structure or historic

home. Standards set by the Department of Natural Resources must be met. For taxable years beginning on or after

January 1, 2009, a credit not to exceed $100,000 for a historic home and $300,000 for a certified structure will be

available. This credit should be claimed on Form ITRHC. For more information, refer to O.C.G.A. 48-7-29.8 or the

Department of Natural Resources website at:

Page 19

Form It 611 - Corporation Income Tax Forms And General Instructions - 2012 Page 18

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