2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue (Page 19 of 24) in pdf

TAX CREDITS

(continued)

Zero Emission Vehicle Credit. This is a credit, the lesser of 20% of the cost of the vehicle or $5,000, for the purchase or

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lease of a new zero emission vehicle. Also there is a credit for the conversion of a standard vehicle to a zero emission

vehicle which is equal to 10% of the cost of conversion, not to exceed $2,500 per converted vehicle. Certification appr-

oved by the Environmental Protection Division of the Department of Natural Resources must be included with the

return for any credit claimed under this provision. A statement from the vehicle manufacturer is not acceptable.

A zero emission vehicle is a motor vehicle which has zero tailpipe and evaporative emissions as defined under rules and

regulations of the Board of Natural Resources and includes an electric vehicle whose drive train is powered solely by

electricity, provided the electricity is not generated by an on-board combustion device. A “low speed vehicle” does not

qualify for this credit. For more information, refer to O.C.G.A. §48-7-40.16. The zero emission vehicle tax credit was

repealed and cannot be claimed for vehicles purchased or leased on or after July 1, 2015.

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 engaged 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 invest-

ment requirement, $450 million qualified investment property, or the payroll requirement, $150 million in total annual of

Georgia W-2 reported payroll within the six-year period. The business enterprise can receive credit 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.

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

located in the 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.

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New Manufacturing Facilities Property Credit. This is an incentive for a manufacturer who has operated a manufactur-

ing facility in this 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 manufactur-

er 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

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home. 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 IT-RHC. The credit changes significantly for certified structures (other

than a historic home) that are completed on or after January 1, 2017. For more information, refer to O.C.G.A. 48- 7-29.8

and the regulation or the Department of Natural Resources website.

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

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duction 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 pro-

duction 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.

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2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue Page 19

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