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

TAX CREDITS

(continued)

Description

Credit

Type Code

128

Wood Residuals Credit. This provides a tax credit for transporting or diverting wood residuals to a renewable biomass

qualified facility on or after July 1, 2008. 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. Taxpayers must request preapproval to claim this credit on Form IT-WR-AP.

For more information, refer to O.C.G.A. § 48-7-29.14.

129

Qualified Health Insurance Expense Credit. Effective for taxable years beginning on or after January 1, 2009, an

employer (but only an employer who employs 50 or fewer persons either directly or whose compensation is reported on

Form 1099) is allowed a tax credit for qualified health insurance expenses in the amount of $250.00 for each employee

enrolled for twelve consecutive months in a qualified health insurance plan. Qualified health insurance means a high

deductible health plan as defined by Section 223 of the Internal Revenue Code. The qualified health insurance must be

made available to all employees and compensated individuals of the employer pursuant to the applicable provisions of

Section 125 of the Internal Revenue Code. The total amount of the tax credit for a taxable year cannot exceed the

employer’s income tax liability. The qualified health insurance premium expense must equal at least $250 annually.

130

Quality Jobs Credit. For tax years beginning on or after January 1, 2009, a taxpayer creating at least 50 “new quality

jobs” may be entitled to a credit provided certain conditions are met. A “new quality job” means a job that: 1) Is located in

this state; 2) Has a regular work week of 30 hours or more; 3) Is not a job that is or was already located in Georgia

regardless of which taxpayer the individual performed services for; and 4) which pays at or above 110 percent of the

average wage of the county in which it is located. The credit amount varies depending upon the pay of the new quality

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

claim the credit in years one through five for new quality jobs created in year one and may continue to claim newly created

new quality jobs through year seven and claim the credit on each of those jobs for five years. The credit may be used to

offset 100 percent of the taxpayers Georgia income tax liability in the taxable year. Where the amount of such credit

exceeds the taxpayer’s tax liability in a taxable year, the excess may be taken as a credit against such taxpayer’s quarterly

or monthly withholding tax. To claim the credit against withholding, a taxpayer must file Form IT-WH at least 30 days prior

to filing the return on which the applicable jobs are 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

business of the approved credit and when and how it may be claimed. For more information, refer to O.C.G.A. § 48-7-

40.17.

131

Alternate Port Activity Tax Credit. O.C.G.A. § 48-7-40.15A provides an alternate port tax credit. The definitions of “base

year port traffic” and “port traffic” include imports and exports of product. It allows the credit to any business enterprise

located in a tier two or three county established pursuant to O.C.G.A. § 48-7-40 and in a less developed area established

pursuant to O.C.G.A. § 48-7-40.1 and which qualifies and receives the tax credit under O.C.G.A. § 48-7-40.1 and which:

1. Consists of a distribution facility of greater than 650,000 square feet in operation in this state prior to December 31,

2008;

2. Distributes product to retail stores owned by the same legal entity or its subsidiaries as such distribution facility; and

3. Has a minimum of 8 retail stores in this state in the first year of operations.

The business enterprise shall not be authorized to claim both this credit and the port credit provided in O.C.G.A. § 48-7-

40.15, unless such business enterprise has increased its port traffic of products during the previous twelve month

period by more than 20 percent above its base year port traffic, and also has increased employment by 400 or more no

sooner than January 1, 1998. The tax credit, in addition to the tax credit under O.C.G.A. § 48-7-40, shall be limited to an

amount not greater than 50 percent of the taxpayer’s state income tax liability which is attributable to income derived from

operations in this state for that taxable year. No credit may be claimed and allowed under this code section for any jobs

created on or after January 1, 2015.

NOTE: The credit type code numbers referenced above are subject to change from year to year.

Please review the codes carefully to ensure you list the correct code number.

For more details about credits and the latest forms, visit our website at:

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Form It-6211s - S Corporation Income Tax Forms And General Instructions - 2011 Page 16

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