2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue (Page 16 of 24) in pdf

TAX CREDITS

Code

Employer’s Credit for Basic Skills Education. Businesses which provide or sponsor basic skills education that enhances

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reading, writing, or mathematical skills up to and including the 12th grade, or classes to receive a GED certificate, may

receive a tax credit. The program is administered by the Department of Technical and Adult Education. This credit should be

claimed on Form IT-BE. For more information, refer to O.C.G.A. §48-7-41. The credit changes significantly for tax years be-

ginning on or after January 1, 2016. Please see the regulation for more information.

Employer’s Credit for Approved Employee Retraining. The retraining tax credit allows employers to claim certain costs of

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retraining employees to use new equipment new technology, or new operating systems. For tax years beginning on or after

January 1, 2009, approved retraining shall not include any retraining on commercially, mass produced software packages for

word processing, database management, presentations, spreadsheets, e-mail, personal information management, or comput-

er operating systems except a retraining tax credit shall be allowable for those providing support or training on such software.

The credit is calculated at 50% of the direct costs of retraining full-time employees, up to $500 per employee per approved re-

training program per year. For tax years beginning on or after January 1, 2009, there is a cap of $1,250 per year per full-time

employee who has successfully completed more than one approved retraining program. The credit may be utilized up to 50%

of the taxpayer’s total state income tax liability for a tax year. For tax years beginning on or after January 1, 2009, the credit

must be claimed within 1 year instead of the normal 3 year statute of limitation period. Credits claimed but not used may be

carried forward for 10 years. For a copy of the Retraining Tax Credit Procedures Guide, contact the Department of Technical

and Adult Education at 404-253-2800 or visit their website. This credit should be claimed on Form IT-RC, with Program Com-

pletion forms signed by Department of Technical and Adult Education personnel attached. For more information, refer to

O.C.G.A. §48-7-40.5.

Employer’s Jobs Tax Credit. This credit provides for a statewide job tax credit for any business or headquarters of any such

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business engaged in manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism, or

research and development industries, but does not include retail businesses. If other requirements are met, job tax credits are

available to businesses of any nature, including retail businesses, in counties recognized and designated as the 40 least dev-

eloped counties.

Tier Designation

County Rankings

New Jobs Created

Credit Amount

Tier 1

1 through 71

5 or more

$3,500

Tier 2

72 through 106

10 or more

$2,500

Tier 3

107 through 141

15 or more

$1,250

Tier 4

142 through 159

25 or more

$750

Credits similar to the credits available in Tier 1 counties are potentially available to companies in certain less developed

census tracts in the metropolitan areas of the state. Note that average wages for the new jobs must be above the average

wage of the county that has the lowest average wage of any county in the state. Also employers must make health insurance

available to employees filling the new full-time jobs, Employers are not, however, required to pay all or part of the cost of such

insurance unless this benefit is provided to existing employees. For taxpayers that initially claimed this credit for any taxable

year beginning before January 1, 2009, credits are allowed for new credit full-time employee jobs for five years in years two

through six after the creation of the jobs. In Tier 1 and Tier 2 counties, the total credit amount may offset up to 100% of a

taxpayer’s state income tax liability for a taxable year. In Tier 3 and Tier 4 counties, the total credit amount may offset up to

50% of a taxpayer’s state income tax liability for a taxable year. In Tier 1 counties and less developed census tracts only,

credits may also be taken against a company’s income tax withholding. To claim the credit against withholding, a business

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 and date of the return if earlier. Once the income tax return is filed, the Department has 120 days to review the withhold-

ing credit being claimed notify the business of the approved credit and when and how it may be claimed. A credit claimed but

not used in any taxable year may be carried forward for 10 years from the close of the taxable year in which the qualified jobs

were established. The measurement of the new full-time jobs and maintained jobs is based on average monthly employment.

Georgia counties are re-ranked annually based on updated statistics. This credit should be claimed on Form IT-CA. An

additional $500 per job is allowed for a business locating within a county that belongs to a Joint Development Authority per

O.C.G.A. §36-62-5.1. An existing business enterprise as defined in O.C.G.A. §48-7-40 qualifies for an additional $500 credit

for each new full-time job provided all conditions are met. For taxpayers that create a new year one under DCA regulations

for any taxable year beginning on or after January 1, 2009 the following apply:

1. The definition of a business enterprise now also includes a business or headquarters of a business that provides services

for the elderly and persons with disabilities (only for the jobs credit provided pursuant to O.C.G.A. 48-7-40).

2. The credit may be claimed beginning with the year the job is created as opposed to the year after the job is created.

3. The credit may be claimed against withholding tax for a business enterprise engaged in a co mpetitive project (as certified by

the Department of Economic Development) which is located in a tier 2, 3, or 4 county.

4. The additional $500.00 tax credit for an existing business enterprise is allowed to be claimed in the year the job is

created as opposed to the year after the job is created.

5. The additional new full-time jobs created in the 4 years after the initial year shall be eligible for the credit.

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

*For a business enterprise that creates a new year one under DCA regulations for any taxable year beginning on or after

January 1, 2012, in tier 1 counties, the business enterprise must increase employment by 2 or more new full-time jobs

for the taxable year to be eligible for the credit. See the Job Tax Credit law (O.C.G.A. 48-7-40 and 48-7-40.1) and regula-

tions for further information or refer to the Department

of Community Affairs website.

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2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue Page 16

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