Form It-6211s - S Corporation Income Tax Forms And General Instructions

TAX CREDITS

(continued)

Description

Credit

Type Code

122

Film Tax Credit. Production companies which have at least $500,000 of qualified expenditures in a state certified pro-

duction may claim this credit. Certification must be approved through the Georgia Department of Economic Develop-

ment. 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 produc-

tion 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 90 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. This credit should be claimed on Form IT-FC, along with certification from the Film Office of the Georgia

Department of Economic Development. For more information, refer to O.C.G.A. §48-7-40.26.

123

Teleworking Credit. Employers who permit their employees to telework will be allowed an income tax credit for

expenses incurred up to $1,200 per participating employee. The percentage of the credit for allowed expenditures

ranges from 100%, 75% and 25% depending upon whether the business is located in a federal “nonattainment” area,

and number of telework days per month required by the participating employee telework agreement. In addition, the

employer will also be allowed a credit for conducting a telework assessment in the year of implementation for 100% of

the cost of preparing the assessment, up to a maximum of $20,000 per employer. However, such costs shall not be

eligible for the credit if the employer has already deducted such expenses from income in any tax year. The aggregate

maximum that can be claimed for this credit is $2 million in 2008, $2 million in 2009, $2.5 million in 2010, and $2.5

million in 2011. This credit is only available for calendar years 2008 through 2011and became effective July 1, 2007.

Costs incurred between July 1, 2007 and January 1, 2008 will be treated as being incurred on January 1, 2008. Taxpayer

must request preapproval to claim this credit on Form IT-TW. For more information, refer to O.C.G.A. §48-7-29.11.

124

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

fies as conservation land pursuant to Chapter 22 of Title 36. 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 prop-

erty, 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 $1 million 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 five succeeding

years. The Department of Natural Resources will certify that such donated property is suitable for conservation pur-

poses. 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. For more information, refer to O.C.G.A. §48-7-29.12.

125

Qualified Education Expense Credit. This provides a tax credit for qualified educational expenses. A corporation is elig-

ible for a credit amount that can equal up to 75% of its income tax liability. The credit is allowed on a first come, first ser-

ved basis. The aggregate amount of the tax credit allowed to all taxpayers cannot exceed $50 million per tax year (which

is indexed for inflation). 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.

126

Seed-Capital Fund Credit. This provides tax credits for certain qualified investments made on or after July 1, 2008.

For more information, refer to O.C.G.A. §§ 48-7-40.27 and 48-7-40.28.

127

Clean Energy Property Credit.

This provides a tax credit for the construction, purchase, or lease of clean energy

property that is placed into service in Georgia between July 1, 2008 and December 31, 2014. The aggregate

amount of tax credits allowed for both the clean energy property tax credit and the wood residuals tax credit is $2.5

million for calendar years 2008, 2009, 2010, 2011, and $5 million for calendar years 2012, 2013, and 2014. A person

receiving a grant from GEFA under O.C.G.A. § 50-23-21 shall not be eligible to claim this tax credit with respect to the

same clean energy property. If a taxpayer is denied the Clean Energy Property Tax Credit because the credit cap has

been reached, that taxpayer shall be added to a waiting list and receive prority for the following years credit allocation.

Credits claimed in calendar years 2012-2014 must be taken in four equal installments over four years. Taxpayer must

request preapproval to claim these credits on Forms IT-CEP-AP. For more information, refer to O.C.G.A. § 48-7-29.14.

Page 15

Form It-6211s - S Corporation Income Tax Forms And General Instructions - 2011 Page 15

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