2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue (Page 21 of 24) in pdf

TAX CREDITS

(continued)

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

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of the return if earlier. Once the income tax return is filed, the Department has 120 days to review the withholding credit be-

ing 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.

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

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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.

Qualified Investor Tax Credit.

This provides a 35% credit for amounts invested in a registered qualified business. The ag-

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gregate amount of credit allowed an individual person for one or more qualified investments in a single taxable year, wheth-

er made directly or by a pass-through entity and allocated to such individual, shall not exceed $50,000.00. The credit is

available for investments made in 2011, 2012, 2013, 2014, 2015, 2016, 2017, and 2018. The credit is claimed 2 years later,

in 2013, 2014, 2015, 2016, 2017, 2018, 2019, and 2020 respectively. The aggregate amount of tax credits allowed is $10

million for investments made in calendar years 2011, 2012, and 2013; and $5 million for investments made in calendar years

2014, 2015, 2016, 2017, and 2018. The taxpayer must get approval as provided in O.C.G.A. § 48-7-40.30 before claiming

the credit. This became effective January 1, 2011. See Code Section 48-7-40.30 and Regulation 560-7-8-.52 for more infor-

mation.

Film Tax Credit for A Qualified Interactive Entertainment Production Company. For taxable years beginning during 2013

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the aggregate amount of film tax credits allowed for qualified interactive entertainment production companies and their affili-

ates which are qualified interactive entertainment production companies shall not exceed $25 million. Such cap for taxable

years beginning in 2014 through 2018 is $12.5 million for each year. The maximum credit for any qualified interactive enter-

tainment production company and its affiliates which are qualified interactive entertainment production companies is $5 mil-

lion for taxable years beginning in 2013, 1.5 million for taxable years beginning in 2014 through 2018. The film tax credit for

qualified interactive entertainment production companies and their affliates will not be available for taxable years begin-

ning on or after January 1, 2019. For taxable years beginning in 2014 through 2018 no qualified interactive entertainment

production company shall be allowed to claim an amount of tax credits for any single year in excess of its total aggregate

payroll expended to employees working within Georgia for the calendar year directly preceding the start of the year the quali-

fied interactive entertainment production company claims the film tax credit. The amount in excess of this limit is not eligible

for carry forward to the succeeding years’ tax liability, nor shall such excess amount be eligible for use against the qualified

interactive entertainment production company’s quarterly or monthly payment under Code Section 48-7-103, nor shall such

excess amount be assigned, sold, or transferred to any other taxpayer. For taxable years beginning in 2014 through 2018

before the Department of Economic Development issues its approval to the qualified interactive entertainment production

company for the qualified production activities related to interactive entertainment, the qualified interactive entertainment pro-

duction company must certify to the Department of Revenue that it maintains a business location physically located in Geor-

gia and that it had expended a total aggregate payroll of $500,000.00 or more for employees working within Georgia during

the calendar year directly preceding the start of the taxable year of the qualified interactive entertainment production compa-

ny; if these requirements are met the Department of Revenue will issue a certification. For the taxable years beginning in

2013, 2014 and 2015 the credits are allowed on a first-come first-served basis based on the date the film tax credits are

claimed. For taxable years beginning in 2016 through 2018 the qualified interactive entertainment production company must

request preapproval to claim the credit.

Alternative Fuel Heavy-Duty Vehicle and Alternative Fuel Medium-Duty Vehicle Tax Credits. For fiscal years 2016 and

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2017 (fiscal years ending June 30, 2016 and June 30, 2017 respectively), this provides an income tax credit for a taxpayer

that purchases an alternative fuel heavy-duty vehicle or an alternative fuel medium-duty vehicle. The credit is allowed on

a first-come first-served basis. The aggregate amount of the tax credit allowed to all taxpayers cannot exceed $2.5 million

per fiscal year. The maximum credit allowed to any taxpayer and their affiliates is $250,000 per fiscal year. Taxpayers must

electronically request preapproval to claim this credit through the Department’s Georgia Tax Center. Taxpayers must have

a certification from the Department of Natural Resources before requesting preapproval. For more information, refer to

O.C.G.A. § § 48-7-29.18 and 48-7-29.19 and Revenue Regulation 560-7-8-.53.

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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2015 Corporation Income Tax General Instructions - Georgia Department Of Revenue Page 21

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