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TAX CREDIT

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

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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 investment requirement, $450 million qualified investment property, 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.

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

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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.

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

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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 jobs 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.

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

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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.

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Film Tax Credit (use code 133 if the credit is for a Qualified Interactive Entertainment Production Company).

Production companies which have at least $500,000 of qualified expenditures in a state certified production may claim this credit.

Certification must be approved through the Georgia Department of Economic Development. The credit is

equal to 20 percent of the base investment in the state, with an additional 10 percent for including a qualified Georgia promotion in the

state certified production. There are special calculation provisions for production companies whose average annual total production

expenditures in this state exceeded $30 million for 2002, 2003 and 2004. This credit may be claimed against 100 percent of the

production company’s income tax liability, while any excess may be used to offset the production company’s withholding taxes. To

claim the credit against withholding, the production company must file Form IT-WH at least 30 days prior to filing the return on which

the credit will be 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 production company of the approved credit and when and

how it may be claimed. The production company also has the option of selling the tax credit to a Georgia taxpayer. A credit claimed

but not used in any taxable year may be carried forward for 5 years from the close of the taxable year in which the investment

occurred. Form IT-FC, along with certification from the Film Office of the Georgia Department of Economic Development must be filed

with the production company’s income tax return to claim the credit. For more information, refer to O.C.G.A. §48-7-40.26.

Land Conservation Credit. This provides for an income tax credit for the qualified donation of real property that qualifies as

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conservation land. Property donated to increase building density levels or property that will be used, or is associated with the playing of golf

shall not be eligible. Taxpayers will be able to claim a credit against their state income tax liability not exceeding 25 percent of the fair market

value of the donated property, or 25 percent of the difference between the fair market value and the amount paid to the donor if the donation

is effected by a sale of property for less than fair market value, up to a maximum credit of $250,000 per individual, and 500,000 per

corporation, and $500,000 per partnership. However, the partners of the partnership are subject to the per individual and per corporation

limits. The amount of the credit used in any one year may not exceed the taxpayer’s income tax liability for that taxable year. Any unused portion

of the credit may be carried forward for ten succeeding years. The Department of Natural Resources will certify that such donated property is

suitable for conservation purposes. A copy of this certificate must be filed with the taxpayer’s tax return in order to claim the credit. This credit

should be claimed on Form IT-CONSV. The taxpayer beginning January 1, 2012, has the option of selling the credit to a Georgia Taxpayer.

For more information, refer to O.C.G.A. §48-7-29.12 and Regulation 560-7-8-.50. For donations in taxable years beginning on or after January

1, 2013, to claim the credit Form IT-CONSV, the DNR certification, the State Property Commission’s determination, and the appraisal must be

attached to the income tax return; and the taxpayer must add back to Georgia taxable income the amount of any federal charitable

contribution related to the Georgia conservation tax credit.

Qualified Education Expense Credit. This provides a tax credit for qualified educational expenses. The credit is allowed on a first

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come, first served basis. The aggregate amount of the tax credit allowed to all taxpayers cannot exceed $58 million per tax year. The

taxpayer must add back to Georgia taxable income that part of any federal charitable contribution deduction taken on a federal return

for which a credit is allowed. Taxpayers must request preapproval to claim this credit on Form IT- QEE- TP1. For more information,

refer to O.C.G.A. § 48-7-29.16 and Revenue Regulation 560-7-8-.47.

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Form It 611s Instructions - S Corporation Income Tax - Georgia Department Of Revenue - 2014 Page 15

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