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TAX CREDITS

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

Low Income Housing Credit. This is a credit against Georgia income taxes for taxpayers owning developments receiving the federal

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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.

Diesel Particulate Emission Reduction Technology Equipment. This is a credit given to any person who installs diesel particulate

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emission reduction equipment at any truck stop, depot, or other facility. For more information, refer to O.C.G.A.

§48-7-40.19.

Business Enterprise Vehicle Credit. This credit is for a business enterprise for the purchase of a motor vehicle used exclusively to

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provide transportation for employees. In order to qualify, a business enterprise must certify that each vehicle carries an average

daily ridership of not less than four employees for an entire taxable year. This credit cannot be claimed if the low and zero emission

vehicle credit was claimed at the time the vehicle was purchased. For more information, refer to O.C.G.A. §48-7-40.22.

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Form It 611s Instructions - S Corporation Income Tax - Georgia Department Of Revenue - 2014 Page 13

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