| (1) | The following filing requirements pertain
to all taxable years beginning on or after January 1, 1971:
|
| (2) | All taxpayers are required to file with
their Georgia income tax return a copy of all or any part of their Federal
income tax return for the corresponding period. The State Revenue Commissioner
shall promulgate instructions specifying taxpayers not required to file a copy
of their Federal returns, and permitting some taxpayers to submit specified
excerpts from Federal returns in lieu of submitting copies of the entire
Federal return. A return filed without the required whole or part of the
Federal return shall be deemed incomplete.
|
| (1) | Purpose. The purpose of this regulation is to provide guidance concerning the administration of O.C.G.A. § 48-7-35. |
| (2) | Application for Permission to use
Another Method.
|
Every corporation not expressly exempt from taxation must make a return of income regardless of the amount of its income. Ordinary corporations make their return on Form No. 600. Electing small business corporations under Subchapter S of the Internal Revenue Code, although exempt from Georgia income tax, make their return on Form No. 600-S. Copies of corporate returns will, so far as possible, be furnished taxpayers. The corporation, however, will not be excused from making a return because no return form has been furnished to it. Each corporation should carefully prepare its return so as to fully and dearly set forth the data called for therein. Imperfect or incorrect returns will not be accepted as meeting the requirements of the law. A corporation in existence during any portion of a taxable year is required to make a return. A corporation which has received a charter, but which has never perfected its organization, has transacted no business and has had no income from any source may, upon presentation of these facts to the Commissioner, be relieved from the necessity of making an income tax return so long as it remains in an unorganized condition. In the absence of a proper showing to the Commissioner, such a corporation will be required to make a return.
| (1) | This section of the Act was enacted for
the purpose of preventing diversion of profits in an arbitrary manner between
corporations and their stockholders or between affiliated corporations. There
has been a tendency on the part of some corporations operating both within and
without the State to form separate corporations to engage in the several
activities, all of which form a part of the overall operation. If, for example,
a manufacturing company operates in Georgia it may sell its products to an
affiliated selling company outside Georgia at prices which may or may not
result in a proper profit for manufacturing the products. Or if a sales company
operates within Georgia it may buy products from a manufacturing affiliate
outside Georgia at prices which may or may not result in proper profit from
selling activities. Some common forms of diversion of income are:
|
| (2) | When any method which distorts net income among and between affiliates is used, the Commissioner will require the consolidation of income of all such affiliates and then proceed to compute the entire net income in accordance with the provisions in Section 92-3113, which relates to apportionment of income within and without the State. The tax imposed by this law shall apply to the correct apportioned income of all affiliates as consolidated. |
| (3) | The Commissioner will have due regard for fair profits, and for prices which products would ordinarily sell for between non-affiliates, and if it is found that affiliates are in fact dealing at arms length, operating, buying and selling, and otherwise dealing with each other as if they were not affiliated, consolidation will not apply. |
| (1) | The automatic extension for filing a return accepted by the Internal Revenue Service is honored by the State of Georgia for the same number of months from the statutory due date of the Georgia return. A regular extension of time for filing for an individual and an additional extension of time for filing for a corporation granted by the Internal Revenue Service is accepted by the State of Georgia to the same due date of the Federal return. The taxpayer may petition for additional time, however Georgia Law prohibits the granting of an extension of over 6 months in the aggregate from the statutory due date of the return. |
| (1) | If the amount of tax shown on a return as being due (after consideration of allowable credits) or any part thereof, is not paid by the date prescribed for such payment, a penalty, as hereinafter provided, shall be added to and collected as part of such tax, unless the taxpayer proves to the satisfaction of the Commissioner that there is reasonable cause for such delinquency. An extension of time for payment of tax is not provided for in O.C.G.A. § 48-7-86. An extension of time to file a return does not extend the time for payment of tax. The taxpayer who has an approved Federal extension of time to file must pay the Georgia tax due on or before the statutory date prescribed for payment. |
| (2) | If the amount of tax specified in a notice and demand for any tax required to be shown on a return which is not so shown is not paid within 10 days from the date thereof, a penalty, as hereinafter provided, shall be added to and collected as a part of such tax, unless the taxpayer proves to the satisfaction of the Commissioner that there is reasonable cause for such delinquency. |
| (3) | The penalty cited in paragraphs (1) and (2) above shall be 1/2 of 1% for each month or fractional part thereof of delinquency. For purposes of this section, the term "month" shall be the period from the date of the month on which the return is due to the same day in the next succeeding month and thereafter to the corresponding date of each succeeding month. |
| (4) | The maximum late payment penalty and late filing penalty imposed by O.C.G.A. § 48-7-57 shall not exceed 25% of the tax not paid by the due date (excluding extensions). |
| (5) | Penalty for Negligence. If all or any part of a deficiency in tax is determined by the Commissioner to be attributable to either negligence or to an intentional disregard of the Georgia Law and the Rules and Regulations thereunder, a penalty of 5% of such deficiency shall be assessed and collected as a part of such tax. |
| (6) | Penalty for Fraud. If all or any part of a deficiency in tax is determined by the Commissioner to be attributable to fraud, a penalty of 50% of such deficiency shall be assessed and collected as a part of such tax. If a penalty for fraud is asserted with respect to any tax, no further penalty shall be assessed on such tax. |
| (1) | If an income tax return is not filed on or before the due date therefor, a penalty as hereinafter provided shall be added to and collected as a part of the tax due thereon, unless the taxpayer proves to the satisfaction of the Commissioner that there is reasonable cause for such delinquency, or unless the taxpayer furnishes with his return a copy of an extension of time granted by the Internal Revenue Service and files such return within such extended time. |
| (2) | The penalty, cited above, shall be 5% for each month or fractional part thereof of delinquency. For purposes of this section, the term "month" shall mean the period from the date of the month on which the return is due to the same date in the next succeeding month, and thereafter to the corresponding date of each succeeding month. A penalty assertable under this section shall be computed on the tax required to be shown on the return less any allowable credits or payments made on or before the statutory date prescribed for payment of tax. |
| (3) | In the event both the late filing penalty and the late payment penalty imposed by O.C.G.A. § 48-7-86 are imposed in the same month, the amount of the late filing penalty shall be reduced by the amount of the late payment penalty that is imposed in such month. |
| (4) | The maximum late filing penalty and late payment penalty imposed by O.C.G.A. § 48-7-86 shall not exceed 25% of the tax not paid by the due date (excluding extensions). |
If it is necessary for the Commissioner to prepare a return under this section, and he does so prepare it, or if he makes additional assessment hereunder, the taxpayer is not necessarily relieved of prosecution. The Commissioner may call upon the solicitor general of any Superior Court Circuit in this State, or the Attorney General of Georgia to prosecute a violator of this law.
The Statute of Limitations provided in O.C.G.A. § 48-2-49 and O.C.G.A. § 48-7-82 does not apply to an examination of the records of any taxpayer under this law, by the Commissioner or his agent.
| (1) | Program Description. The headquarters job tax credit program authorized by Section 48-7-40.17 provides a credit for taxes for a taxpayer establishing its headquarters in this state or relocating its headquarters into this state. |
| (2) | Definitions.
|
| (3) | Establishing Eligibility
for the Credit.
|
| (4) | Calculation of Credit. A taxpayer that has established eligibility
for the headquarters job tax credit shall be allowed a credit for taxes imposed
under this article as follows:
|
| (5) | Claiming the Credit.
|
| (6) | Documentation. At the time the credit is claimed on an income tax return, the taxpayer shall submit to the commissioner a listing of headquarters staff employees in new full-time jobs. Such listing shall include the name of the employee, social security number, wages, amount of credit claimed for such employee (whether $2,500.00 or $5,000.00), and any other information that the commissioner may request. |
| (7) | Notification and
Process to Claim and Receive Withholding Tax Credit.
|
| (8) | Pass-Through of Credit.
|
| (1) | Interest at the rate provided in O.C.G.A. § 48-2-40 and referred to in O.C.G.A. §§ 48-7-81 and 48-7-126 shall be computed on all deficiencies or unpaid tax from the date such payment of tax was due until paid. |
| (2) | For purposes of this rule the date such payment of tax was due shall refer to the due date of the return on which such tax is payable, and shall ignore any extension of time granted for filing such return, or any assessment of tax prior to such due date. |
| (3) | If there is a deficiency
or unpaid tax on any return which is subsequently decreased by a carry-back of
a net operating loss, interest and penalty shall be computed on such deficiency
or unpaid tax, without consideration of such carry-back loss, from the date
such payment of tax was due to the last day of the taxable year in which such
net operating loss occurs. Thereafter, interest and penalty shall be computed
on the tax after adjustment for deduction of the net operating loss carry-back.
Example:An individual filed the 2001 return reflecting taxable income, and did not pay the $400 tax shown on the return. The taxpayer then filed the 2003 return reflecting a net operating loss of $2000, and then filed a timely claim for refund carrying the loss to 2001. The unpaid tax balance after deduction of the operating loss carry-back is $280.00. Interest and penalty would be computed as follows, presuming the date of payment of the liability to be August 15, 2004: Interest and penalty on $400 Additional Tax from April 15, 2002 to December 31, 2003 126 Additional Tax Due After Net Operating Loss Carry-back Deduction 280 Interest and penalty on $280 from January 1, 2004 to August 15, 2004 29 --------- Net Deficiency at August 15, 2004 $435 Note: This regulation applies to all taxpayers. An individual taxpayer was used for illustration purposes only. |
| (4) | The interest and penalty provided by this regulation shall be assessed and collected as if it were an integral part of the tax upon which it is computed. |
In the event an amended return is filed by the taxpayer which shows a change in the return, the statute of limitations under O.C.G.A. § 48-2-49 and O.C.G.A. § 48-7-82 runs from the date the amended return was filed only to the extent of such specific changes.
A detailed statement of changes made by the Commissioner of Internal Revenue must be submitted under separate cover. Do not mail with current year's return. This must be mailed to the address indicated in the current instruction booklet for the type of entity (i.e., corporation, s-corporation, partnership, fiduciary, or individual.)
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the rural physician credit under O.C.G.A. § 48-7-29. |
| (2) | Definitions. As used in this
regulation:
|
| (3) | Amount of the Credit.
|
| (4) | Sunset Date. O.C.G.A. § 48-7-29, the rural physician credit, shall be repealed on December 31, 2029. |
| (5) | Effective Date. This regulation shall be applicable to years beginning on or after January 1, 2024. Years beginning before January 1, 2024 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2024 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | A claim for refund of taxes and fees, that have been erroneously or illegally assessed and collected, shall be made pursuant to Chapter 7 of Title 48 of the O.C.G.A. and O.C.G.A. § 48-2-35. |
| (2) | Upon such claim for refund, the Commissioner may redetermine the entire tax liability of the taxpayer for the year or period for which the claim is filed, and even though no new assessments can be made on account of the expiration of the period of limitation, the taxpayer is nevertheless not entitled to a refund unless the taxpayer has actually overpaid his tax for such taxable period. |
| (3) | Claims must be filed on the form
prescribed by the Commissioner, and if the prescribed form is not timely filed
the claim may be disallowed. If the taxpayer requests a refund in other than
the prescribed manner within the period allowed by O.C.G.A. § 48-2-35 the taxpayer must, in
order for the claim to be considered, show by satisfactory evidence that:
|
| (4) | Unless otherwise specified by the Department, in the event a claim for refund is paid for an amount that is less than the amount claimed (including the applicable interest), the amount that is not paid shall be deemed denied. |
When a taxpayer is not liable for Georgia income taxes for an entire year because of moving into this State or moving from this State, he shall include in his return only his income received while a resident of this State. Deductions of a personal nature such as contributions to charitable organizations, alimony, medical expenses, or the optional standard deduction and personal exemption and credits for dependents shall be allowed in the ratio that the adjusted gross income of the taxpayer while residing in Georgia bears to the total adjusted gross income of the taxpayer for the entire year. As used herein, gross income means total income less business expenses incurred in the production of such income.
Whenever the Commissioner finds that a taxpayer has failed to file a return, maintain records, supply any information, or comply with other provisions of the income tax laws, payment of the tax, penalty and interest imposed by this law will not relieve the taxpayer from prosecution, nor will such prosecution relieve him of the tax, penalty and interest imposed by this law.
| (1) | Purpose. The purpose of this Rule is to prescribe income tax forms and returns necessary for the administration and enforcement of Chapter 7 of Title 48 as required under O.C.G.A. § 48-2-12. |
| (2) | Individual/Fiduciary Taxpayer Form
Numbers and Purpose.
|
| (3) | C-Corporation Taxpayer Forms and
Purpose.
|
| (4) | Partnership Forms and
Purpose.
|
| (5) | S-Corporation Taxpayer Forms and
Purpose.
|
| (6) |
Withholding Tax Forms and Purpose.
|
| (7) | Other
Income Tax Forms and Purpose.
|
| (1) | Purpose. The purpose of this regulation is to provide guidance concerning the payment and reporting of withholding tax required under O.C.G.A. §§ 48-2-32, 48-7-101, 48-7-103, 48-7-105, and 48-7-106, and the withholding penalties imposed by subsection (c) of O.C.G.A. § 48-7-126. |
| (2) | Definitions.
|
| (3) | Payment of Withholding Tax.
|
| (4) | Reporting of Withholding
Tax.
|
| (5) | Certification of Software Vendors. At such time that the Department starts its certification program, the electronic filing of withholding returns and withholding tax statements must be completed by utilizing a software vendor that is approved by the Department. |
| (6) | Withholding Penalties. The
withholding penalties imposed by subsection (c) of O.C.G.A. § 48-7-126 shall be applied as
follows (see subparagraph (6)(e) for examples):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| (1) | Definitions. As used in this regulation, the following terms are defined as follows:
|
| (2) | Withholding.
|
| (3) | Composite Returns.
|
| (4) | Tiered Situations. Except as provided in paragraph (5), in situations whereby the nonresident member is an entity, or where such nonresident member is owned by subsequent entities, the following shall apply:
|
| (5) | Exception in Tiered Situations.
|
| (6) | Withholding Procedures.
|
| (7) | Undue Hardship.
|
| (8) | Anti-avoidance Clause. If the Commissioner reasonably determines that a transaction or payment has been entered into for the purpose of avoiding the provisions of this regulation and O.C.G.A. § 48-7-129, he or she may characterize any payment, or portion thereof, made by the entity to its member so as to reflect the true substance of the transaction. |
| (9) | Effective Date. The provisions set forth in this regulation will apply to taxable years beginning on or after January 1, 2024. Taxable years beginning before January 1, 2024 will be governed by the regulations of Chapter 560-7 as they exist before January 1, 2024 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Nonresidents of Georgia. The
term "Nonresident of Georgia" shall include individuals, trusts, partnerships,
corporations, and unincorporated organizations. For purposes of O.C.G.A.
Section 48-7-128, the following persons
are Nonresidents of Georgia and are therefore subject to the withholding tax
requirements:
|
| (2) | Co-owners. If two or more persons sell real property which they own as joint tenants with right of survivorship or as tenants in common, their respective status as to residence will be determined separately. Withholding is required only on the amount realized or gain recognized by the nonresident co-owner(s). |
| (3) | Calculation of tax.
|
| (4) | Forms.
|
| (5) | Exemptions. Although there are no filing requirements under law in exempt transactions, the Commissioner has prepared a Certificate of Exemption (Form IT-AFF3) as an example of a form which may be executed and provided to the parties for record keeping purposes. This form, or a similar document executed by the seller and provided to the buyer, may be used to document the buyer's reliance on the seller's representation that the sale transaction is exempt. Copies of the Certificate of Exemption form may be obtained from any Department of Revenue office. |
| (1) | Program Description. The Job Tax Credit program provides tax credits under Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated for certain business enterprises that create and retain new full-time employee jobs in Georgia. The Georgia Department of Community Affairs ("DCA") and the Georgia Department of Revenue have been designated as the responsible agencies within Georgia to administer the program. |
| (2) | Coordination of Regulations. Any reference to Community Affairs regulations in this regulation refers to the most recent regulations relating to the Job Tax Credit program which have been adopted by the Georgia Department of Community Affairs. |
| (3) | Definitions.
|
| (4) | Designation/Redesignation of Less Developed Counties and Less Developed Census Tract Areas. Counties will be designated tier 1, tier 2, tier 3 or tier 4 less developed counties subject to the factors set out in Community Affairs Regulation . Census tracts will be designated less developed census tract areas subject to the factors set out in Community Affairs Regulation . Less developed counties and less developed census tract areas may be redesignated according to the factors set out in Community Affairs Regulation . |
| (5) | Amount of Credit.
|
| (6) | Maximum Amount of Credit.
|
| (7) | Certification of Competitive Project. Prior to making the election to use the withholding benefit, a business enterprise engaged in a competitive project located in a tier 2, tier 3 or tier 4 county must be certified by the Commissioner of the Department of Economic Development. The certification must state that but for some or all of the tax incentive provided under O.C.G.A. Section 48-7-40, the business enterprise would have located or expanded outside of Georgia. |
| (8) | Eligibility for Credit.
|
| (9) | Claiming the Credit. For a
business enterprise to claim the job tax credit, the business enterprise must
submit Form IT-CA with its Georgia income tax return for each year in which the
credit is claimed. For any business enterprise that creates a new year one
under DCA regulations for any taxable year beginning on or after January 1,
2009, the job tax credit must be claimed within one year of the earlier of the
date the original return was filed or the date such return was due, including
extensions.
|
| (10) | Carryforward. Any job tax credit which is claimed but not used in a taxable year may be carried forward for the number of years authorized under O.C.G.A. §§ 48-7-40 and 48-7-40.1 from the close of the taxable year in which the qualifying new jobs were created. |
| (11) | Coordination with Investment Tax
Credit, Optional Investment Tax Credit, the Headquarters Jobs Tax Credit, and
the Quality Jobs Tax Credit.
|
| (12) | Pass-Through Entities. When the business enterprise is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage and the limitations of this regulation. The credit forms will initially be filed with the tax return of the business enterprise to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The shareholders, members, or partners may not claim any excess tax credits against their withholding tax liabilities. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2018. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2018 tax year. |
| (13) | Special
Provisions.
|
| (1) | Definitions. As used in this
regulation:
|
| (2) | Calculation of Credit.
|
| (3) | Establishing Eligibility for the
Credit.
|
| (4) | Maximum Amount of Credit. The investment tax credit taken by a taxpayer in any taxable year shall not exceed 50 percent of the taxpayer's Georgia state income tax liability derived from operations within this state. |
| (5) | Withholding Tax for Taxpayers in Rural Counties located in Tier 1 Counties or Tier 2 Counties. For a taxpayer with a manufacturing or telecommunications facility in a rural county located in a tier 1 county or tier 2 county that has purchased or acquired qualified investment property in a taxable year beginning on or after January 1, 2020 (which is then claimed on an income tax return in the taxable year after the purchased or acquired taxable year), the investment tax credit shall first be applied to such taxpayer's state income tax liability which is attributable to income derived from operations within this state for that taxable year, limited to 50 percent of such liability before the application of such credit. If the amount of the credit exceeds 50 percent of the taxpayer's liability or estimated tax liability before the application of the credit, the excess may be taken as provided in this regulation as a credit against such taxpayer's quarterly or monthly withholding payments under O.C.G.A. § 48-7-103. The taxpayer shall not be subject to any adverse consequences including penalties from the failure to estimate their tax liability correctly. |
| (6) | Per Taxpayer Credit Limitation for Withholding Tax. The amount preapproved for a taxable year for a taxpayer to be used against withholding under paragraphs (5) and (9) together shall not exceed $1 million. This per taxpayer per taxable year $1 million credit limitation applies to all facilities that a taxpayer has in rural counties located in both tier 1 and tier 2 counties. |
| (7) | Credit Cap. The total amount of tax credits preapproved to be used against withholding tax for taxpayers in rural counties located in tier 1 and tier 2 counties under paragraphs (5) and (9) together shall not exceed $10 million for all taxpayers per calendar year. |
| (8) | Preapproval for
Withholding Tax for Taxpayers in Rural Counties located in Tier 1 Counties or
Tier 2 Counties. A taxpayer with a manufacturing or telecommunications
facility in a rural county located in a tier 1 county or tier 2 county that has
received an approved Form IT-APP from the Department for qualified investment
property purchased or acquired in a taxable year beginning on or after January
1, 2020 (which is then claimed on an income tax return in the taxable year
after the purchased or acquired taxable year), may request preapproval to use
their excess credit against withholding tax by submitting the appropriate forms
to the Department as provided in this paragraph.
|
| (9) | Eligibility for
Investment Tax Credit Carryforward to be used against Withholding Tax.
|
| (10) | Preapproval for Investment Tax
Credit Carryforward to be used against Withholding Tax. A taxpayer that
expects to meet the requirements in paragraph (9) of this regulation may
request preapproval to use such investment tax credit carryforward against
withholding tax as provided in this paragraph.
|
| (11) | Carryforward.
|
| (12) | Sunset for Paragraphs (9) and (10) of this regulation. Paragraphs (9) and (10) of this regulation shall be repealed on December 31, 2024; provided, however, such automatic repeal shall not impair or affect a taxpayer's ability or right to apply an unused credit for a taxable year after December 31, 2024, that such taxpayer accrued under such paragraphs under the conditions of such paragraphs prior to its automatic repeal. |
| (13) | Coordination with Job, Quality Jobs, Headquarters Job and Optional Investment Tax Credits. A taxpayer may not claim or carry forward the investment tax credit for a given project in any year in which either a job tax credit is claimed or carried forward under O.C.G.A. Sections 48-7-40 or 48-7-40.1, a quality jobs tax credit or headquarters job tax credit is claimed under O.C.G.A. Section 48-7-40.17, or an optional investment tax credit is claimed under O.C.G.A. Sections 48-7-40.7, 48-7-40.8, or 48-7-40.9. Neither may a taxpayer alternately claim the investment tax credit in one year and either the job, quality jobs, headquarters job, or optional investment tax credit in the next year for a given project. The job, investment, and optional investment tax credits are not interchangeable. Taxpayers may elect to claim only one of the job, investment, or optional investment credits for a given project. |
| (14) | Leases of Qualified Investment Property. Any lease for a period of five years or more of any real or personal property used in the construction or expansion of a manufacturing or telecommunications facility which would otherwise constitute qualified investment property will be treated as the purchase or acquisition of qualified investment property by the lessee. Such property will be treated as having been purchased or acquired by the taxpayer in the taxable year in which the lease becomes binding on the taxpayer and the lessor. In establishing eligibility and calculating the investment credit based on such property, the taxpayer will use the fair market value of the leased property as the cost of qualified investment property. |
| (15) | Schedule of Additional Information. In addition to the information
required under paragraph (c)(1) of O.C.G.A. Sections
48-7-40.2,
48-7-40.3, and
48-7-40.4, taxpayers must include
for every year in which they claim the credit the following information:
|
| (16) | Pass-Through Entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the taxpayer to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2020. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2020 tax year. |
| (17) | Specific
Applications.
|
| (18) | Effective Date. Except as specifically provided in this regulation, this regulation as amended shall be applicable to qualified investment property purchased or acquired in taxable years beginning on or after January 1, 2025. Qualified investment property purchased or acquired in taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they exist before January 1, 2025 in the same manner as if the amendments set forth in this regulation had not been promulgated. |
| (1) | Definitions. As used in this
regulation:
|
| (2) | Tax Credit for Cost of Operation.
The credit to be claimed pursuant to O.C.G.A. Section
48-7-40.6(b) is
a tax credit against the Georgia income tax and it shall be granted to an
employer who makes available employer provided or employer sponsored child care
for employees of such employer.
|
| (3) | Tax Credit for Cost of Qualified
Child Care Property. The tax credit for the cost of qualified child care
property, pursuant to O.C.G.A. Section
48-7-40.6(d) is
a credit against the tax imposed under Article 2 of Chapter 7 O.C.G.A. which
may be claimed for the taxable year in which the taxpayer first places in
service qualified child care property and for each of the next succeeding nine
taxable years. The aggregate amount of the credit shall equal 100 percent of
the cost of all qualified child care property purchased or acquired by the
taxpayer and first placed in service during a taxable year and such credit may
be claimed at a rate of l0 percent per year for the ten year period.
|
| (4) | Pass-Through Entities. When the employer is a pass-through entity,
and has no income tax liability of its own, the tax credits will pass to its
members, shareholders, or partners based on the year ending profit/loss
percentage. The credit forms will initially be filed with the tax return of the
taxpayer to establish the amount of the credit available for pass through. The
credit will then pass through to its shareholders, members, or partners to be
applied against the tax liability on their income tax returns. The credits are
available for use as a credit by the shareholders, members, or partners for
their tax year in which the income tax year of the pass-through entity ends.
For example: A partnership earns the credit for its tax year ending January 31,
2009. The partnership passes the credit to a calendar year partner. The credit
is available for use by the partner beginning with the calendar 2009 tax year.
|
| (1) | Definition of Resident and Nonresident. O.C.G.A. § 48-7-1 provides the definition of both residents and nonresidents. |
| (2) | Authority to Tax Lottery Proceeds. O.C.G.A. § 50-27-24(a) provides the authority to tax all proceeds of any lottery prize regardless of the amount. |
| (3) | Lottery Prize Proceeds Subject to Income Tax Withholding. Lottery prize proceeds of more than $5,000 are subject to income tax withholding in accordance with O.C.G.A. § 48-7-101. |
| (4) | Withholding From the Proceeds Paid to a Georgia Resident or Nonresident. For prize proceeds of more than $5,000 from a play with any lottery conducted by the Georgia Lottery Corporation, all such proceeds shall be subject to withholding in an amount equal to the maximum marginal rate provided in O.C.G.A § 48-7-20 multiplied by the proceeds. The Georgia Lottery Corporation shall issue to the recipient of such prize a W-2G showing the amount of the lottery prize proceeds and the amount of income tax withheld. The Georgia Lottery Commission shall remit income tax withheld on the proceeds to the Commissioner of Revenue as prescribed in the State income tax laws. |
| (1) | Definitions.
|
| (2) | Calculation of Credit.
|
| (3) | Establishing Eligibility for the Credit.
|
| (4) | Coordination with the Investment Tax Credit and the Job Tax Credit. The credit allowed under this Section is an optional investment tax credit in lieu of the regular investment tax credit allowed under O.C.G.A. Sections 48-7-40.2, 48-7-40.3, and 48-7-40.4. Taxpayers who elect to claim this credit for a given project make an irrevocable election and may not thereafter claim either the job tax credit or the regular investment tax credit for a given project. Taxpayers who have previously claimed credits under O.C.G.A. Sections 48-7-40, 48-7-40.1, 48-7-40.2, 48-7-40.3, or 48-7-40.4 for a given project in any taxable year are not eligible for the optional investment tax credit for the same project in any subsequent year. |
| (5) | Leases of Qualified Investment Property. Any lease for a period of five years or more of any real or personal property used in the construction or expansion of a manufacturing facility which would otherwise constitute qualified investment property will be treated as the purchase or acquisition of qualified investment property by the lessee. Such property will be treated as having been purchased or acquired by the taxpayer in the taxable year in which the lease becomes binding on the taxpayer and the lessor. In establishing eligibility and calculating the credit based on such property, the taxpayer will use the fair market value of the leased property as the cost of qualified investment property. |
| (6) | Pass-Through of Credit.
|
| (1) | Purpose. This rule provides guidance concerning the implementation and administration of the income tax credit under O.C.G.A. § 48-7-40.12. |
| (2) | Definitions. As used in this
regulation:
|
| (3) | Establishing Eligibility for the Credit. A business enterprise that has qualified research expenses in Georgia in a taxable year exceeding a base amount, and for the same taxable year claims and is allowed a research credit under Section 41 of the Internal Revenue Code of 1986, as amended shall be eligible for the credit. |
| (4) | Credit Amount. A business enterprise that has established eligibility for the research tax credit shall be allowed a tax credit equal to 10 percent of the excess of the qualified research expenses over the base amount. The credit taken in any one taxable year shall not exceed 50 percent of the business enterprise's remaining Georgia net income tax liability after all other credits have been applied. |
| (5) | Claiming the Credit. For a
business enterprise to claim the research tax credit, the business enterprise
must submit Form IT-RD and Federal Form 6765, from the entity generating the
credit, with its Georgia income tax return for each tax year in which the
qualified research expenses were incurred.
|
| (6) | Carryforward. Any credit which is claimed but not used in a taxable year shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-40.12 from the close of the taxable year in which the qualified research expenses were made. |
| (7) | Pass-through Entities. When the business enterprise is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage and the limitations of this regulation. The credit forms will initially be filed with the tax return of the business enterprise to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The shareholders, members, or partners may not claim any excess research tax credit against their withholding tax liabilities. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2018. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2018 tax year. |
| (8) | Effective Date. This regulation as amended shall be applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they exist before January 1, 2025 in the same manner as if the amendments set forth in this regulation had not been promulgated. |
| (1) | Definitions.
|
| (2) | Amount of the credit. A taxpayer shall be allowed a credit against the tax imposed by O.C.G.A. § 48-7-20 for qualified caregiving expenses in an amount not to exceed 10 percent of the total amount expended for qualified caregiving expenses. |
| (3) | Limitations.
|
| (1) | Definitions.
|
| (2) | Purchase of a new single-family home. A taxpayer shall be allowed a credit against the tax imposed by O.C.G.A. § 48-7-20. The credit is in the amount of $500.00 with respect to the purchase during the taxable year of a new, single-family home containing all of the accessibility features defined under subparagraph (1)(a). New is defined for purposes of this paragraph as brand new, not just new to the owner. The home must contain all of the accessibility features in order to qualify for the credit mentioned in this paragraph. If the home does not contain all of the accessibility features, no credit is allowed under this paragraph. However, the home does not have to have all of the features throughout the entire home. At a minimum, the home has to have at least one of each of the features listed in subparagraph (1)(a). |
| (3) | Retrofit of an existing single-family home. A taxpayer shall be allowed a credit against the tax imposed by O.C.G.A. § 48-7-20. For qualifying expenditures made to retrofit an existing, single- family home with one or more accessibility features as defined under subparagraph (1)(a), a credit shall be allowed with respect to each such accessibility feature in the amount of $125.00 or the actual cost of such accessibility feature, whichever is lower, provided that the aggregate amount of such credit under this paragraph for such accessibility features shall not exceed $500.00. For purposes of this paragraph, the entire home does not have to be retrofitted with the particular accessibility feature. Part of the home could be retrofitted with one feature and the next year the other part of the home could be retrofitted with the same feature. In this case, a credit would be allowed for each year. Additionally, if the taxpayer lives in a home they rent instead of owning, they would still be allowed a credit under this paragraph provided the taxpayer pays for the expenditure. |
| (4) | Limitations.
|
| (1) | Purpose. This rule provides guidance concerning the implementation and administration of the income tax credits contained within the Georgia Entertainment Industry Investment Act (hereinafter "Act") under O.C.G.A. § 48-7-40.26. |
| (2) | Coordination of Agencies. The Department of Economic Development is the state agency responsible for determining which projects qualify for the tax credits authorized under the Act and specifying which projects were approved as interactive entertainment projects. |
| (3) | Definitions.
|
| (4) | Affiliates.
|
| (5) | Certification of Qualified
Production Activities. Prior to claiming the film tax credit (which
includes the additional tax credit for including the qualified Georgia
promotion), each new film, video, or digital project must be certified by the
Department of Economic Development. Production companies that are required to
reduce their investment basis by the amount of expenditures in prior years,
must receive certification from the Department of Economic Development for
current year projects prior to claiming the film tax credit. The Department of
Economic Development will provide a Credit Certificate Number to the production
company or qualified interactive entertainment production company for each
qualifying project which is approved. The credit certificate number(s) will be
used to report any transfer or sale of film tax credit by the production
company or qualified interactive entertainment production company for the
qualifying project(s).
|
| (6) | Production Expenditures.
|
| (7) | Credit Amount.
|
| (8) | Credit Amount Limitation for a Qualified Interactive Entertainment
Production Company. Except as provided in paragraph (8)(a) of this
regulation, a qualified interactive entertainment production company's credit
amount shall not exceed the amounts in paragraph (9) of this regulation and for
any single tax year shall not exceed the qualified interactive entertainment
production company's total aggregate payroll expended to employees working
within this state for the calendar year directly preceding the start of the
taxable year the qualified interactive entertainment production company claims
the film tax credit. Any amount in excess of this credit limit shall not be
eligible for carryforward to 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 O.C.G.A.
§ 48-7-103, nor shall such excess
amount be assigned, sold, or transferred to any other taxpayer.
|
| (9) | Credit
Cap for Film Tax Credit for Qualified Interactive Entertainment Production
Companies and Affiliates. In no event shall the aggregate amount of tax
credits allowed under O.C.G.A. § 48-7-40.26 for qualified
interactive entertainment production companies and their affiliates which are
qualified interactive entertainment production companies exceed the following
amounts:
|
| (10) | Production Company or Qualified Interactive Entertainment Production
Company Claiming Credit.
|
| (11) | Conditions and Limitations.
|
| (12) | Pass-Through Entities. When a production company or qualified interactive entertainment production company generating a film tax credit is a pass-through entity, and has no income tax liability of its own, the film tax credit will pass to its members, shareholders, or partners based on the year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the production company or qualified interactive entertainment production company that incurred the qualifying expenditures to establish the amount of the film tax credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The shareholders, members, or partners may not claim any excess film tax credit against their withholding tax liabilities or against the withholding tax liabilities of their payroll service providers. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2014. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2014 tax year. |
| (13) | Selling or Transferring the Film
Tax Credit. The production company or qualified interactive
entertainment production company may sell or transfer in whole or in part any
film tax credit, previously claimed but not used by such production company or
qualified interactive entertainment production company against its income tax,
to another Georgia taxpayer subject to the following conditions:
|
| (14) | How to Sell or Transfer the Tax Credit.
|
| (15) | Reporting
Required for Qualified Interactive Entertainment Production Companies.
For taxable years beginning on or after January 1, 2016, the qualified
interactive entertainment production company shall electronically report to the
Department of Revenue through the Georgia Tax Center on Form IT-QIEPC-RPT the
monthly average number of full-time employees subject to Georgia income tax
withholding for the taxable year as provided in subparagraphs (a) and (b) of
this paragraph. Such report shall be filed on the date the qualified
interactive entertainment production company files its Georgia income tax
return. For purposes of this paragraph, a full-time employee shall mean a
person who performs a job that requires a minimum of 35 hours a week, and pays
at or above the average wage earned in the county with the lowest average wage
earned in this state, as reported in the most recently available annual issue
of the Georgia Employment and Wages Averages Report of the Department of Labor.
|
| (16) | Reporting Required for
Production Companies (not applicable to Qualified Interactive Entertainment
Production Companies).
|
| (17) | Mandatory Film Tax Credit Audit. For any project first certified
by the Department of Economic Development on or after January 1, 2021 and on or
before December 31, 2021, if the total amount of such film tax credit for the
project exceeds $2.5 million, the film tax credit shall not be claimed,
assigned, sold, transferred, or utilized in any manner until the production
company applies for a mandatory film tax credit audit under paragraph (18) of
this regulation and the Department issues a final certification(s) of the film
tax credit under paragraph (19) of this regulation.
|
| (18) | Application for Mandatory
Audit. A production company seeking to claim the film tax credit for
projects covered under paragraph (17) of this regulation, must apply for an
audit of the film tax credit in the manner provided by the Department within
one year from the date of the completion of the state certified production
where such date is defined as the date of the completion of principal
photography.
|
| (19) | Certification and Decertification
of Auditors and Issuing of the Final Certification.
|
| (20) | Reimbursement
Costs for Audit. The production company applying for a final
certification of the tax credit shall agree and be required to reimburse the
Department for all costs incurred by the Department for the performance of a
related audit, or any portion thereof, including for review of an audit
conducted by an eligible auditor, at the time of application.
|
| (21) | Claiming the film tax credit for projects that receive a final certification. If the production company is issued final certification of the film tax credit under paragraph (19) of this regulation such film tax credit shall be considered earned in the taxable year in which it is issued final certification. For a production company to claim the film tax credit for a project that has received a final certification, the production company must complete the appropriate income tax credit schedule on their Georgia income tax return even if the film tax credit is sold or transferred. No Form IT-FC "Film Tax Credit" is required. The production company may elect to use their excess film tax credit against withholding as provided in subparagraph (10)(b) of this regulation. |
| (22) | Carryforward for projects that receive a final certification. In no event shall the amount of film tax credit for a taxable year exceed the production company's income tax liability. For a project that has been issued a final certification under paragraph (19) of this regulation any unused film tax credit, for the production company or any transferees, shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-40.26 from the close of the taxable year in which the film tax credit was issued its final certification. Film tax credits may not be carried back and applied against prior year's income tax liability. |
| (23) | No Recapture for Transferee. The Department shall not recapture the film tax credit from the transferee if the film tax credit was issued a valid final certification under paragraph (19) of this regulation. |
| (24) | Mandatory Film Tax Credit Audit Due Process. The production company must protest under O.C.G.A. § 48-2-46 or file an appeal with the tribunal or superior court within 30 days of the issuance of the final certification. If protested under O.C.G.A. § 48-2-46, any final determination can be appealed with the tribunal or superior court. |
| (25) | Not applicable to Qualified Interactive Entertainment Production Companies. Paragraphs (17) through (24) of this regulation shall not apply to qualified interactive entertainment production companies. |
| (26) | Effective Date. This regulation as amended shall become effective on January 1, 2025. Years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation identifies the North American Industry Classification System (NAICS) Codes that are assigned to the industries that qualify as a business enterprise under O.C.G.A. §§ 48-7-40.12 and 48-7-40.22. |
| (2) | Business Enterprise Defined.
The term "business enterprise" means any corporation, partnership, limited
liability company, sole proprietorship, or other business entity or the
headquarters of such business entity that is engaged in manufacturing,
warehousing and distribution, processing, telecommunications, broadcasting,
tourism, or research and development industries. The term "business enterprise"
excludes all child care businesses and retail businesses, except as referenced
in O.C.G.A. § 48-7-40.22. The Department of
Revenue will use the North American Industry Classification System (NAICS)
published by the United States Office of Management and Budget, 2017 edition,
to determine whether an entity is engaged in any of the qualifying industries
listed in this paragraph (2). Taxpayers self-select their NAICS Codes. However,
upon review the Department may determine that the self-selected NAICS code does
not match the taxpayer's primary activity. The NAICS website is located at the
following address:http://www.census.gov/epcd/www/naics.html
|
| (3) | "Retail businesses" defined. The term "retail businesses" as used in paragraph (2) of this regulation means: any establishment that is primarily engaged in retailing merchandise and rendering services incidental to the sale of merchandise and included in NAICS Sector 44-45; any establishment that is primarily engaged in providing professional services and included in NAICS Industry Groups 5411, 5412 and 5413; and establishments that are primarily engaged in banking, savings and lending functions and included in NAICS Industry Groups 5211, 5221, 5222, 5231, and 5239, and NAICS Industries 52231 and 52239. |
| (4) | Request for Determination. In the event that a business believes that it qualifies as a business enterprise for a tax credit governed by this regulation, but is unsure if it meets the eligibility requirements outlined in the relevant Code and this regulation, a Request for Determination may be requested from the Department of Revenue. The business should provide a detailed explanation of the activity for which the tax credits are being requested, along with any documentation to support the request. The Department shall have 30 days from receipt of all necessary information to complete the review and issue a determination regarding the eligibility of the business for the tax credit. |
| (5) | Effective Date. This regulation as amended shall be applicable to tax credits earned in taxable years beginning on or after January 1, 2018. Taxable years beginning before January 1, 2018 will be governed by the regulations of Chapter 560-7 as they exist before January 1, 2018 in the same manner as if the amendments set forth in this regulation had not been promulgated. |
| (1) | Purpose. The purpose of this regulation is to provide guidance concerning the administration of O.C.G.A. § 48-7-29.16, which provides a credit for qualified education expenses. Other provisions and conditions regarding student scholarship organizations and the qualified education expense credit are set forth in O.C.G.A. § 48-7-29.16 and Chapter 2A of Title 20. |
| (2) | Definitions.
|
| (3) | Coordination of Agencies.
|
| (4) | Audit
Report.
|
| (5) | Form 990. Each SSO must submit a copy of its most recent Form 990 to the Department of Revenue through the Georgia Tax Center. |
| (6) | Calendar Year Report.
|
| (7) | Examples of the Timing of
Reports.
|
| (8) | Failure of the Audit Report to Verify or Failure to Submit the Audit Report as Required under O.C.G.A. § 20-2A-2. Notwithstanding O.C.G.A. §§ 20-2A-7, 48-2-15, 48-7-60, 48-7-61 and paragraph (9) of this regulation, if the audit report submitted by the SSO fails to verify: that the SSO obligated its annual revenue received from donations for scholarships or tuition grants, including any interest earned on deposits and investments of such funds, as required under O.C.G.A. § 20-2A-2; that obligated revenues were designated for specific student recipients within the time frame required under O.C.G.A. § 20-2A-2; and that all obligated and designated revenue distributed to a qualified school or program for the funding of multiyear scholarships or tuition grants complied with this regulation; then the Department shall post on its website the details of such failure to verify. If the audit report is not submitted by the required time, the SSO shall be deemed to have failed all three requirements. Until the noncompliant SSO submits an amended audit (or the required audit report in the case of a failure to submit the audit report by the required time), which to the satisfaction of the Department contains the verifications required under O.C.G.A. § 20-2A-2, the Department shall not preapprove any contributions to the noncompliant SSO. |
| (9) | Failure to Report and
Confidentiality. Any SSO that does not submit the audit report or
calendar year report as required under this regulation or receives a qualified
opinion or a disclaimer on their audit report from an independent certified
public accountant or otherwise fails to comply with the requirements of Chapter
2A of Title 20 shall be given written notice of their failure and shall have
ninety days from receipt of such notice to correct all deficiencies.
|
| (10) | Credit Limitations for Individuals
and Corporations. The amount of qualified education expense credit
granted to a taxpayer shall not exceed:
|
| (11) | Credit and Credit Limitations Specific to Business Enterprises. The amount of qualified education expense credit granted to a business enterprise against its gross premium tax liability owed pursuant to O.C.G.A. § 33-8-4 is limited to the lesser of the actual amount expended or 75 percent of the business enterprise's gross premium tax liability. Such credit shall not exceed one million dollars. |
| (12) | Credit
Cap. In no event shall the total amount of tax credits allowed under
O.C.G.A. § 48-7-29.16 exceed:
|
| (13) | Reporting the Availability of the Credit. The Department shall post on its website the current amount of qualified education expense credits available. |
| (14) | Preapproval
of the Contribution.
|
| (15) | Letter of Confirmation. Form IT-QEE-SSO1 shall be provided by the SSO to the taxpayer to confirm the contribution. |
| (16) | Claiming the Credit. A
taxpayer claiming the qualified education expense credit, unless indicated
otherwise by the Commissioner, must submit Form IT-QEE-TP2 with the taxpayer's
Georgia tax return when the qualified education expense credit is claimed. A
software program's Form IT-QEE-TP2 that is electronically filed with the
Georgia income tax return in the manner specified by the Department satisfies
this requirement.
|
| (17) | E-filing Attachment Requirements. If a taxpayer claiming the credit electronically files their tax return, the Form IT-QEE-SSO1 shall be required to be attached to the return only if the Internal Revenue Service allows such attachments when the data is transmitted to the Department. In the event the taxpayer files an electronic return and such information is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia return, such information shall be maintained by the taxpayer and made available upon request by the Commissioner. |
| (18) | Carry Forward. Any credit which is claimed but not used in a taxable year shall be allowed to be carried forward to apply to the taxpayer's succeeding five years' tax liability. However, any amount in excess of the credit amount limits in paragraphs (10) and (11) of this regulation shall not be eligible for carryforward to the taxpayer's succeeding years' tax liability nor shall such excess amount be claimed by or reallocated to any other taxpayer. |
| (19) | Taxpayer Must Add Back Portion of
Federal Deduction on State Return if Taxpayer Takes State Credit.
O.C.G.A. § 48-7-29.16(h)(1)
provides that no qualified education expense credit shall be allowed under
O.C.G.A. § 48-7-29.16 with respect to any
amount deducted from taxable net income by the taxpayer as a charitable
contribution to a bona fide charitable organization qualified under Section
501(c)(3) of the Internal
Revenue Code. If the taxpayer is allowed the state income tax deduction in
place of the charitable contribution deduction as allowed by the Internal
Revenue Service, for purposes of this paragraph such deduction shall be
considered a charitable contribution to the extent such deduction is allowed
federally. Accordingly, the taxpayer must add back to Georgia taxable income
that part of any federal deduction taken on a federal return for which a
Georgia qualified education expense credit is allowed under O.C.G.A. § 48-7-29.16.
|
| (20) | Scholarships.
|
| (21) | Designation of
Contributions. The tax credit shall not be allowed if the taxpayer
directly or indirectly designates the taxpayer's qualified education expense
for the direct benefit of any particular individual, whether or not such
individual is a dependent of the taxpayer.
|
| (22) | Effective Date. This rule is applicable to years beginning on or after January 1, 2023. Years beginning before January 1, 2023 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2023 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the wood residuals tax credits under O.C.G.A. § 48-7-29.14. |
| (2) | Coordination of Agencies. The Georgia Forestry Commission and the Department of Revenue have been designated as the primary agencies responsible within Georgia to administer the program. The Georgia Forestry Commission is the state agency responsible for certifying the dollar amount of wood residuals transported or diverted to a renewable biomass qualified facility. |
| (3) | Tax Credit for Transporting or
Diverting Wood Residuals. The tax credit under O.C.G.A. § 48-7-29.14(b)(2)
is a tax credit against Georgia income tax and shall be granted to a taxpayer
who transports or diverts wood residuals to a renewable biomass qualified
facility on or after July 1, 2008. The taxpayer eligible to claim this credit
shall be the taxpayer that received certification from the Georgia Forestry
Commission for transporting or diverting wood residuals.
|
| (4) | Denial of Credit. In the event it is determined that the taxpayer has not met all the requirements of O.C.G.A. § 48-7-29.14 and this regulation, then the amount of the credits shall not be tentatively approved or the tentatively approved credits shall be retroactively denied. With respect to such denied credits, tax, interest, and penalties shall be due if the credits have already been claimed. |
| (5) | Claiming tax credits under O.C.G.A. § 48-7-29.14(b)(2).
Any taxpayer seeking to claim tax credits under O.C.G.A. § 48-7-29.14(b)(2),
must submit the appropriate forms to the Department of Revenue as provided in
this paragraph.
|
| (6) | Pass-Through Entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the taxpayer to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2009. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2009 tax year. |
| (7) | Effective Date. This rule is applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of tax credits under O.C.G.A. §§ 48-7-40.27 and 48-7-40.28. |
| (2) | Research Fund. O.C.G.A. §§ 48-7-40.27 and 48-7-40. together create a maximum of one research fund which is used for purposes of both O.C.G.A. §§ 48-7-40.27 and 48-7-40.28. |
| (3) | Tax Credits for Qualified
Investments under O.C.G.A. § 48-7-40.27. The tax credit
under O.C.G.A. § 48-7-40.27 shall be granted to a
taxpayer for any qualified investment in the research fund made on or after
July 1, 2008.
|
| (4) | Tax Credits for Qualified
Investments under O.C.G.A. § 48-7-40.28. The tax credit
under O.C.G.A. § 48-7-40.28 shall be granted to a
taxpayer for any qualified investment made on or after July 1, 2008, in a legal
entity in which the research fund has invested.
|
| (5) | Claiming tax credits under O.C.G.A. §§ 48-7-40.27 and 48-7-40.28. Any taxpayer seeking to claim tax credits under O.C.G.A. § 48-7-40.27 and/or § 48-7-4.28 must submit Form IT-SCF and certification(s) issued by the research fund with the taxpayer's Georgia income tax return each year in which tax credits are claimed. |
| (6) | Carryforward. Any credit which is claimed under O.C.G.A. § 48-7-40.27 or § 48-7-40.28 but not used in a taxable year may be carried forward for the number of years authorized under O.C.G.A. § 48-7-40.27 or § 48-7-40.28. |
| (7) | Pass-Through Entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners in the same manner as they would account for their proportionate shares of income or loss from such entities. The credit forms will initially be filed with the tax return of the taxpayer to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2009. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2009 tax year. |
| (8) | Effective Date. This rule is applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credit under O.C.G.A. § 48-7-29.12. |
| (2) | Coordination of Agencies. The Department of Natural Resources (DNR) is the state agency responsible for determining that the qualified donation under O.C.G.A. § 48-7-29.12 is suitable for two conservation purposes and meets the additional requirements provided by O.C.G.A. § 48-7-29.12(c). The State Properties Commission is the state agency responsible for approving the appraisal amount submitted or for recommending a lower appraisal amount based on its review. |
| (3) | Definition. "Tax parcel" means adjacent or contiguous real property with common ownership valued as a unit by the county tax assessor. |
| (4) | Credit
Amount. Except as otherwise provided in this regulation, a taxpayer
shall be granted a tax credit for each qualified donation under O.C.G.A. § 48-7-29.12 in an amount not to
exceed the lesser of: $500,000, or 25 percent of the fair market value of the
donated real property as fair market value is established for the year in which
the donation occurred, 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 as established for the year in which
the donation occurred.
|
| (5) | Per Taxpayer Credit
Limitation. The credit amount allowed under paragraph (4) of this
regulation shall be further limited for each taxpayer for a taxable year and
shall not exceed the following amounts:
|
| (6) | Qualified Donation Limitation. Only one qualified donation may be made with respect to any real property that was, in the five years prior to the year of the donation, within the same tax parcel of record, except that a subsequent donation may be made by a person who is not a related person with respect to any prior eligible donors of any portion of such tax parcel. There must be five years between each donation year in the case of a phased easement. For example, a donation is made in year 1. The five intervening years are years two through six. A donation would be allowed in year seven. This is allowed even when the evidence of the easement might remain as part of the same deed filing because once the easement is contributed its value is removed and it then is not part of the same tax parcel of record. |
| (7) | Credit Cap. Beginning with qualified donations occurring on or after January 1, 2016, the total amount of tax credits preapproved under O.C.G.A. § 48-7-29.12 and this regulation shall not exceed $30 million per calendar year. Beginning with qualified donations occurring on or after June 1, 2022, and ending on December 31, 2026, the total amount of tax credits preapproved under O.C.G.A. § 48-7-29.12 and this regulation shall not exceed $4 million per calendar year. |
| (8) | Preapproval of the Credit.
Any taxpayer seeking preapproval to claim a tax credit under O.C.G.A. § 48-7-29.12 for a qualified
donation that occurs on or after January 1, 2016, must submit the appropriate
forms to the Department through the Georgia Tax Center as provided in this
paragraph. Before submitting an application to the Department of Revenue, the
taxpayer shall have completed the donation, received the State Property
Commission's determination, and certification from DNR. The taxpayer must apply
for preapproval for the calendar year for which the qualified donation
occurred.
|
| (9) | Claiming the conservation tax credit. Any taxpayer claiming the conservation tax credit for a qualified donation that occurred before January 1, 2016, must submit Form IT-CONSV, certification(s) from DNR, the State Property Commission's determination, and the appraisal of the donated property with the taxpayer's Georgia income tax return in the tax year in which the qualified donation occurred; Form IT-CONSV must be submitted with the Georgia income tax return each year the credit is claimed. Any taxpayer claiming the conservation tax credit for a qualified donation that occurs on or after January 1, 2016, must submit Form IT-CONSV with the taxpayer's Georgia income tax return each year the conservation tax credit is claimed. |
| (10) | Carryforward. Any credit which is claimed but not used in a taxable year shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-29.12. However, the amount in excess of the annual dollar limits specified in paragraph (5) of this regulation shall not be eligible for carryover to the taxpayer's succeeding years' tax liability nor shall such excess amount be claimed by, reallocated to, or transferred or sold to any other taxpayer. |
| (11) | Joint Tenancy, Tenancy in Common, and Similar Groups. When owners of real property included in a joint tenancy, tenancy in common, or similar group make a qualified donation, the tax credits will be allocated to each owner based on that owner's ownership percentage of the donated real property. |
| (12) | Add Back Federal Deduction.
For qualified donations made in taxable years beginning on or after January 1,
2013, no credit shall be allowed under O.C.G.A. § 48-7-29.12 with respect to any
amount deducted from taxable net income by the taxpayer as a charitable
contribution.
|
| (13) | Pass-Through Entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage and the limitations of this regulation. The credit forms will initially be filed with the tax return of the taxpayer to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2014. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2014 tax year. |
| (14) | Selling or
Transferring the Conservation Tax Credit. Beginning on January 1, 2012,
a taxpayer may sell or transfer in whole or in part any conservation tax
credit, previously claimed but not used by such taxpayer against its income
tax, to another Georgia taxpayer subject to the following conditions:
|
| (15) | How to sell or transfer the tax
credit.
|
| (16) | Sunset Date. The Department of Natural Resources shall accept no new applications for tax credits after December 31, 2026. |
| (17) | Effective Date. This rule is applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the quality jobs tax credit under O.C.G.A. § 48-7-40.17. |
| (2) | Definitions. As used in this
regulation:
|
| (3) | Transferred jobs do not qualify. New quality jobs must be new to the state of Georgia. Jobs that are transferred from other Georgia locations of the taxpayer, or from other Georgia locations of an affiliate of the taxpayer, would not be jobs that are new to the state of Georgia. However, an employee in a new quality job may be employed at a temporary location in this state pending completion of construction or renovation work. |
| (4) | Establishing eligibility for the
credit.
|
| (5) | Credit amount per new quality job created in the same tax year. A
taxpayer that has established eligibility for the quality jobs tax credit shall
receive the same credit amount for each new quality job created in the same tax
year. The credit amount is as follows and is based on a comparison of the
average weekly wage for all new quality jobs in both prior and subsequent
seven-year periods (determined below in subparagraph (5)(c) of this regulation)
with the county average wage, as reported in the most recent annual issue of
the Georgia Employment and Wages Averages Report of the Department of Labor
that is available as of the last day of the taxable year in which the new
quality jobs were created:
|
| (6) | Computation of the quality jobs tax credit based on twelve-month periods only. In years two through seven, a taxpayer must compute increases and decreases in full-time jobs on the basis of twelve-month periods only, even when the taxpayer has taxable years that are not equal to twelve months. This may cause the quality jobs tax credit calculation period to be different from the tax year of the taxpayer. |
| (7) | Claiming the credit. The quality jobs tax credit shall be claimed
on an income tax return for the first taxable year in which the taxpayer first
becomes eligible for the credit. The quality jobs tax credit must be claimed
within one year of the earlier of the date the original return was filed or the
date such return was due, including extensions.
|
| (8) | Subsequent seven-year job creation
period. For taxable years beginning on or after January 1, 2017, a
taxpayer may create a subsequent seven-year job creation period for a new
qualified project in Georgia. In order to create the subsequent seven-year job
creation period, the taxpayer must complete the creation of a qualified project
in a taxable year beginning on or after January 1, 2017 and create 50 or more
new quality jobs above its single previous high yearly average number of new
quality jobs during any prior seven-year job creation period, at the site or
sites of the qualified project or the facility or facilities resulting
therefrom. A subsequent seven-year job creation period is subject to all the
requirements of O.C.G.A. § 48-7-40.17 and this regulation.
|
| (9) | Carryforward. Any quality jobs tax credit which is claimed but not used in a taxable year may be carried forward for 10 years from the close of the taxable year in which the new quality jobs were created. For example, quality job tax credits created by an employment increase in year one, but not used in year one, may be carried forward to years two through eleven. |
| (10) | Pass-through entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage and the limitations of this regulation. The credit forms will initially be filed with the tax return of the taxpayer to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The shareholders, members, or partners may not claim any excess quality jobs tax credit against their withholding tax liabilities. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2010. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2010 tax year. |
| (11) | No waiver for a job already located in Georgia. Since the definition of new quality job in O.C.G.A. § 48-7-40.17 requires that the job not be a job that is or was already located in Georgia, regardless of which taxpayer the individual performed services for, the Commissioner has no authority to grant a waiver of this requirement. |
| (12) | Effective Date. This regulation as amended shall be applicable to taxable years beginning on or after January 1, 2025. However, subparagraph (2)(h) of this regulation shall be applicable to taxable years beginning on or after January 1, 2023. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they exist before January 1, 2025 in the same manner as if the amendments set forth in this regulation had not been promulgated, except that subparagraph (2)(h) of this regulation as amended will still govern for taxable years beginning on or after January 1, 2023. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credit under O.C.G.A. § 48-7-40.30. |
| (2) | Definitions. As used in this
regulation:
|
| (3) | Registration. A qualified business must electronically register
with the Commissioner by electronically submitting Form IT-QBR through the
Georgia Tax Center; registration shall constitute certification by the
Commissioner for 12 months beginning on the date of the Commissioner's
approval. The Department will not process any Form IT-QBR for registration that
is submitted or filed in any other manner. A business shall be permitted to
renew its registration with the Commissioner so long as at the time of renewal,
the business remains a qualified business. In order to be certified, the
qualified business shall provide the Commissioner any information required by
the Commissioner.
|
| (4) | Credit Amount. A qualified investor that makes a qualified investment directly in a qualified business in calendar year 2011, 2012, 2013, 2014, 2015, 2016, 2017, or 2018 shall be allowed a tax credit of 35 percent of the amount invested commencing on January 1 of the second year following the year in which the qualified investment was made. |
| (5) | Per Individual Credit Limitation. The credit amount allowed under paragraph (4) of this regulation shall be further limited for each individual, for one or more qualified investments whether made directly or by a pass-through entity, for a taxable year and shall not exceed $50,000.00. |
| (6) | Credit Cap. In no event
shall the total amount of tax credits allowed under O.C.G.A. § 48-7-40.30 exceed the following
amounts:
|
| (7) | Claiming the
Credit. Any qualified investor seeking to claim the tax credit under
O.C.G.A. § 48-7-40.30, must submit the
appropriate forms to the Department as provided in this paragraph.
|
| (8) | E-Filing Attachment Requirements. If a taxpayer claiming the credit electronically files their tax return, the approved Form IT-QI-AP shall be required to be attached to the return only if the Internal Revenue Service allows such attachments when the data is transmitted to the Department. In the event the taxpayer files an electronic return and such information is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia return, such information shall be maintained by the taxpayer and made available upon request by the Commissioner. |
| (9) | Carryforward. Any credit which is claimed but not used in a taxable year shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-40.30 from the close of the taxable year in which the qualified investment was made. However, any amount in excess of the credit amount limits in paragraphs (4) and (5) of this regulation shall not be eligible for carryover to the qualified investor's succeeding years' tax liability nor shall such excess amount be claimed by or reallocated to any other taxpayer. |
| (10) | Pass-Through Entities. When the qualified investor is a pass-through entity, and has no income tax liability of its own, the tax credit will pass to its individual members, shareholders, or partners in the same manner as they would account for their proportionate shares of income or loss from such entities. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available for pass through. The credit will then pass through to its individual shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the individual shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2013. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the calendar 2013 tax year. |
| (11) | Qualified Investor's Basis. The qualified investor's basis in the common or preferred stock, equity interest, or subordinated debt acquired as a result of the qualified investment shall be reduced by the amount of credit claimed by the qualified investor. |
| (12) | Qualified Investor Tax Credit Not Transferrable. The tax credit under O.C.G.A. § 48-7-40.30 is not transferrable by the qualified investor except to the heirs and legatees of the qualified investor upon his or her death and to his or her spouse upon incident of divorce. |
| (13) | Recapture. Any credit claimed under O.C.G.A. § 48-7-40.30 shall be recaptured if
any of the following occur:
|
| (14) | Recapture
Amount. The amount of credit recaptured:
|
| (15) | Qualified Business Ceases Business Operations, Dissolves, or Liquidates. In the event the qualified business ceases business operations, dissolves, or liquidates, the qualified investor may claim either the credit authorized under O.C.G.A. § 48-7-40.30 or any capital loss the qualified investor otherwise would be able to claim regarding that qualified business, but shall not be authorized to claim and be allowed both. If the qualified investor claims a capital loss and has already utilized the credit, the credit shall be recaptured. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credits under O.C.G.A. §§ 48-7-29.18 and 48-7-29.19. |
| (2) | Coordination of Agencies. The Georgia Department of Natural Resources is the state agency responsible for certifying that a vehicle is an alternative fuel heavy-duty vehicle, or an alternative fuel medium-duty vehicle. |
| (3) | Definitions. As used in this regulation, the terms "affiliated entity","alternative fuel","alternative fuel heavy-duty vehicle","alternative fuel medium-duty vehicle","new commercial vehicle", and "taxpayer" shall have the same meaning as in O.C.G.A. § 48-7-29.18. |
| (4) | Credit Amount for Alternative Fuel Heavy-Duty Vehicle. A taxpayer shall be allowed a tax credit for the amount expended on or after July 1, 2015, and before June 30, 2017, to purchase an alternative fuel heavy-duty vehicle not to exceed $20,000.00 per vehicle. |
| (5) | Credit Amount for Alternative Fuel Medium-Duty Vehicle. A taxpayer shall be allowed a tax credit for the amount expended on or after July 1, 2015, and before June 30, 2017, to purchase an alternative fuel medium-duty vehicle not to exceed $12,000.00 per vehicle. |
| (6) | Per Taxpayer or Affiliated Entity of the Taxpayer Credit Limitation and No Carry Forward. The credit amounts allowed under paragraphs (4) and (5) of this regulation shall be further limited for each taxpayer or affiliated entity of the taxpayer for a taxable year and shall not exceed the taxpayer's or affiliated entity's income tax liability or $250,000.00, whichever is less. The amount preapproved for a taxable year for the taxpayer and all of its affiliated entities shall not exceed $250,000.00. No unused portion of the tax credits shall be allowed the taxpayer or an affiliated entity of the taxpayer against succeeding years' tax liability. |
| (7) | Credit Cap. The total amount
of tax credits preapproved under both paragraph (4) and (5) of this regulation
are limited to the following amounts:
|
| (8) | Preapproval and Claiming the
Credit. Any taxpayer seeking preapproval to claim tax credits under
paragraphs (4) and (5) of this regulation, must submit the appropriate forms to
the Department through the Georgia Tax Center as provided in this paragraph.
Before submitting an application to the Department of Revenue, the taxpayer
shall have completed the purchase and shall have registered the qualified
vehicle or vehicles in Georgia. The taxpayer must apply for preapproval for the
fiscal year in which the purchase of the qualified vehicle is completed.
|
| (9) | E-Filing Attachment Requirements. If a taxpayer claiming the credit electronically files their tax return, the Form IT-AFV-AP shall be required to be attached to the return only if the Internal Revenue Service allows such attachments when the data is transmitted to the Department. In the event the taxpayer files an electronic return and such information is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia return, such information shall be maintained by the taxpayer and made available upon request by the Commissioner. |
| (10) | Pass-Through Entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credit will pass to its individual members, shareholders, or partners based on their year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available for pass through. The credit will then pass through to its individual shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the individual shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2016. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the calendar 2016 tax year. |
| (11) | Recapture. Any credit
claimed under O.C.G.A. §§ 48-7-29.18 and
48-7-29.19 shall be recaptured if
any of the following occur during the five-year period following the
application date of Form IT-AFV-AP:
|
| (12) | Recapture Amount. The amount of credit recaptured shall be added to the taxpayer's income tax liability for the taxable year in which the recapture event occurs even if the statute of limitations of O.C.G.A. § 48-7-82 has expired for the year the credit was claimed. |
| (13) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2015. |
| (1) | Purpose. This regulation provides guidance concerning the approval or preapproval periods for income tax credits under Chapter 7 of Title 48 of the Georgia Code. |
| (2) | Beginning of an Approval or Preapproval Period. Pursuant to O.C.G.A. § 48-2-39, when the approval or preapproval period for an income tax credit under Chapter 7 of Title 48 of the Georgia Code begins on a Saturday, Sunday, legal holiday, or day on which the Federal Reserve Bank is closed, such beginning date shall be postponed until the first day following which is not a Saturday, Sunday, legal holiday, or day on which the Federal Reserve Bank is closed. When an approval or preapproval is requested through the Department's Georgia Tax Center, the request may be submitted beginning at 8:00AM on such following day. |
| (3) | First-Come, First-Served Basis. When an income tax credit statute or regulation provides that an income tax credit shall be allowed on a first-come, first-served basis, any returns or applications submitted on a Saturday, Sunday, legal holiday, or day on which the Federal Reserve Bank is closed, shall be considered to have been submitted on the first day following which is not a Saturday, Sunday, legal holiday, or day on which the Federal Reserve Bank is closed. This paragraph shall only apply to a return or application submitted on a day following the beginning date of the approval or preapproval period as provided by paragraph (2) of this regulation. |
| (4) | Proration on the Day the Credit Cap is Reached. When an income tax credit statute or regulation provides that returns or applications received on the day that an income tax credit cap is reached shall be prorated based on the returns or applications received on such day, any returns or applications submitted on a Saturday, Sunday, legal holiday, or day on which the Federal Reserve Bank is closed, shall be considered to have been submitted on the first day following which is not a Saturday, Sunday, legal holiday, or day on which the Federal Reserve Bank is closed. This paragraph shall only apply to a return or application submitted on a day following the beginning date of the approval or preapproval period as provided by paragraph (2) of this regulation. |
| (5) | Effective Date. This regulation shall be applicable to any income tax credit approval or preapproval period beginning after October 31, 2015. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credit under O.C.G.A. § 48-7-41. |
| (2) | Coordination of Agencies. The Technical College System of Georgia, Office of Adult Education is the state agency responsible for certifying that the employer has met the requirements of O.C.G.A. § 48-7-41. |
| (3) | Definitions. As used in this regulation, the terms "adult basic skills education","approved adult basic skills education program","basic skills education test","employee", "employer","employer provided", and "employer sponsored" shall have the same meaning as in O.C.G.A. § 48-7-41. |
| (4) | Credit Amount. An employer
who provides or sponsors an approved adult basic skills education program shall
be allowed a tax credit in the amount of:
|
| (5) | Per Employer Credit Limitation and No Carry Forward. The credit amounts allowed under paragraph(4) of this regulation shall be further limited for each employer and shall not exceed $100,000.00 per calendar year. No unused portion of the tax credits shall be allowed the employer against succeeding years' tax liability. |
| (6) | Credit Cap. The total amount of tax credits preapproved under paragraph (7) of this regulation shall not exceed $1 million per calendar year. |
| (7) | Preapproval and
Claiming the Credit. Before requesting preapproval from the Department,
the employer should apply for pre-certification of the employer's program from
the Technical College System of Georgia, Office of Adult Education to ensure
that the employer's program meets the requirements of O.C.G.A. § 48-7-41. Any employer seeking
preapproval to claim tax credits under paragraph (4) of this regulation, must
submit the appropriate forms to the Department through the Georgia Tax Center
as provided in this paragraph.
|
| (8) | E-Filing Attachment Requirements. If an employer claiming the credit electronically files their tax return, the Form IT-BE-AP and final certification from the Technical College System of Georgia shall be required to be attached to the return only if the Internal Revenue Service allows such attachments when the data is transmitted to the Department. In the event the employer files an electronic return and such information is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia return, such information shall be maintained by the employer and made available upon request by the Commissioner. |
| (9) | Pass-Through Entities. When the employer is a pass-through entity, and has no income tax liability of its own, the tax credit will pass to its individual members, shareholders, or partners based on their year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available for pass through. The credit will then pass through to its individual shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the individual shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2016. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the calendar 2016 tax year. |
| (10) | Sunset Date. O.C.G.A. § 48-7-41, the basic skills education tax credit, shall be repealed on January 1, 2020. |
| (11) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2016. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credits under O.C.G.A. § 48-7-29.8. |
| (2) | Coordination of Agencies. The Georgia Department of Community Affairs is the state agency responsible for certifying that the rehabilitation meets the requirements of O.C.G.A. § 48-7-29.8. |
| (3) | Definitions. As used in this regulation, the terms "certified rehabilitation", "certified structure", "historic home", "qualified rehabilitation expenditure", "substantial rehabilitation", and "target area" shall have the same meaning as in O.C.G.A. § 48-7-29.8. As used in this regulation, the terms "full-time employee" and "full-time permanent job" means a person who works a job that requires 30 or more hours per week. |
| (4) | Historic Rehabilitation Tax Credit
for a Historic Home. A taxpayer shall be allowed a tax credit equal to
25 percent of the qualified rehabilitation expenditures for the certified
rehabilitation of a historic home in the taxable year in which the certified
rehabilitation is placed in service; except that in the case of a historic home
located within a target area, an additional credit equal to 5 percent of the
qualified rehabilitation expenditures shall be allowed.
|
| (5) | Credit cap for 2022 for Historic Homes and for Any Other Certified Structure earning $300,000 or less. In no event shall the aggregate amount allowed for historic homes completed on or after January 1, 2022 and any other certified structures earning $300,000 or less, together, exceed $5 million for calendar year 2022. |
| (6) | Historic Rehabilitation Tax Credit
for Any Other Certified Structure. A taxpayer shall be allowed a tax
credit equal to 25 percent of the qualified rehabilitation expenditures for the
certified rehabilitation of any other certified structure, other than a
historic home, in the taxable year in which the certified rehabilitation is
placed in service, except as provided in subparagraph (6)(j) of this regulation
and paragraph (7) of this regulation.
|
| (7) | Completion of the Project for
Preapproved Projects.
|
| (8) | Qualified Rehabilitation Expenditures Only Counted Once. Qualified rehabilitation expenditures can only be counted once in determining the amount of the tax credit available, and more than one entity may not utilize the historic rehabilitation tax credit for the same qualified expenditures. |
| (9) | Sunset Date. O.C.G.A. § 48-7-29.8, the historic rehabilitation tax credit, shall be repealed on December 31, 2029. As such, projects completed on or after January 1, 2030 are not eligible except as allowed by paragraph (7) of this regulation. |
| (10) | Effective Date. This regulation shall be applicable to certified rehabilitations completed on or after January 1, 2017, regardless of when the certified rehabilitation was started. |
| (1) | Purpose. The purpose of this regulation is to provide guidance concerning the administration of the tax credit under O.C.G.A. § 48-7-29.20. |
| (2) | Coordination of Agencies. The Georgia Department of Community Health is the state agency responsible for approving rural hospital organizations and administering O.C.G.A. § 31-8-9.1. The Department of Community Health shall maintain a current list of approved rural hospital organizations on its website. |
| (3) | Definitions. As used in this regulation, the terms "qualified rural hospital organization expense" and "rural hospital organization" shall have the same meaning as in O.C.G.A. § 48-7-29.20. |
| (4) | Credit Amount. From January
1 to June 30 of each calendar year of the credit, the amount of qualified rural
hospital organization expense tax credit allowed a taxpayer shall be as
follows:
|
| (5) | Credit Cap. In no event shall the aggregate amount of tax credits allowed under O.C.G.A. § 48-7-29.20 exceed $75 million for calendar years ending on or before December 31, 2024. For calendar years beginning on or after January 1, 2025, the aggregate amount of tax credits allowed shall not exceed $100 million. |
| (6) | Per Individual Rural Hospital
Organization Limitation. For each calendar year of the credit, no more
than $4 million of credit shall be preapproved for any individual rural
hospital organization. On the day and time any Form IT-QRHOE-TP1 is received
for a calendar year that causes the per individual rural hospital organization
limitation in this paragraph to be reached, then any subsequent applicants for
such individual rural hospital organization shall be denied. There shall be no
proration based on the date an application is received. The Department shall
notify such individual rural hospital organization if the $4 million limitation
is reached. Such rural hospital organization shall within 15 days of the date
of such notification, notify the Georgia Department of Community Health that
the $4 million limitation was reached.
|
| (7) | Individual Rural Hospital
Organization Per Tax Type Preapproval Limitations. Subject to the
aggregate limit in paragraph (5) of this regulation and the per individual
rural hospital organization limitation in paragraph (6) of this regulation, the
Department shall only preapprove contributions for this tax credit in the
following manner:
|
| (8) | Mandatory Electronic Preapproval
Application. The preapproval process allocates the credit caps. A
taxpayer seeking preapproval to claim the tax credits under paragraph (4) of
this regulation must electronically submit Form IT-QRHOE-TP1 through the
Georgia Tax Center. The Department will not preapprove any qualified rural
hospital organization expense tax credit where Form IT-QRHOE-TP1 is submitted
or filed in any other manner. Each rural hospital organization shall be
registered with the Department to facilitate the web-based preapproval process
for Form IT-QRHOE-TP1.
|
| (9) | Letter of Confirmation. Form IT-QRHOE-RHO1 shall be provided by the rural hospital organization to the taxpayer to confirm the contribution within 30 days of the contribution. |
| (10) | Claiming the Credit. A taxpayer claiming the qualified rural hospital organization expense tax credit, unless indicated otherwise by the Commissioner, must submit Form IT-QRHOE-TP2 with the taxpayer's Georgia tax return when the qualified rural hospital organization expense tax credit is claimed. An electronically filed Georgia income tax return that includes the software's electronic Form IT-QRHOE-TP2 satisfies this requirement. |
| (11) | Carryforward. Any credit which is claimed but not used in a taxable year shall be allowed to be carried forward to apply to the taxpayer's succeeding five years' tax liability. However, any amount in excess of the credit amount limits in paragraph (4) of this regulation shall not be eligible for carry forward to the taxpayer's succeeding years' tax liability nor shall such excess amount be claimed by or reallocated to any other taxpayer. |
| (12) | Taxpayer Must Add Back Portion of
Federal Deduction on State Return if Taxpayer Takes State Credit.
O.C.G.A. § 48-7-29.20(g)
provides that no qualified rural hospital organization expense tax credit shall
be allowed under O.C.G.A. § 48-7-29.20, with respect to any
amount deducted from taxable net income by the taxpayer as a charitable
contribution to a bona fide charitable organization qualified under Section
501(c)(3) of the Internal Revenue Code. If the taxpayer is allowed the state
income tax deduction in place of the charitable contribution deduction as
allowed by the Internal Revenue Service, for purposes of this paragraph such
deduction shall be considered a charitable contribution to the extent such
deduction is allowed federally. Accordingly, the taxpayer must add back to
Georgia taxable income that part of any federal deduction taken on a federal
return for which a Georgia qualified rural hospital organization expense tax
credit is allowed under O.C.G.A. § 48-7-29.20.
|
| (13) | Designation of Contributions. The tax credit shall not be allowed if the taxpayer directly or indirectly designates the taxpayer's qualified rural hospital organization expense tax credit for the direct benefit of any particular individual, whether or not such individual is a dependent of the taxpayer. |
| (14) | Reports by
Rural Hospital Organization. Rural hospital organizations must submit a
monthly Form IT-QRHOE-RHO2 to the Department of Revenue. The report shall be
due within 90 days of the end of each respective month. The report shall be
submitted electronically through the Georgia Tax Center. The report shall be
prepared on a monthly basis regardless of the fiscal year of the rural hospital
organization. If the rural hospital organization fails to timely file the
report, the donor taxpayer shall not be allowed the credit. The taxpayer may
again request preapproval for such denied donation subject to the credit caps.
The report shall include the following for each respective month:
|
| (15) | Report by Donor. Until the time the Department changed the Georgia Tax Center on June 26, 2019, each taxpayer that received preapproval of the qualified rural hospital organization expense tax credit had to report to the Department the amount of the contribution and the Department issued tax credit certificate number and had to provide a copy of the Form IT-QRHOE-RHO1 to the Department. Such information had to be submitted within 30 days of the date of the contribution and had to be submitted electronically through the Georgia Tax Center. If the taxpayer failed to timely file the report, the taxpayer shall not be allowed the credit. The taxpayer may again request preapproval for such denied donation subject to the credit caps. |
| (16) | Confirmation of Donations. Upon the rural hospital organization's confirmation to the Department, as required by paragraph (14) of this regulation, of the receipt of donations that have been preapproved by the Department, any taxpayer preapproved by the Department shall receive the full benefit of the qualified rural hospital organization expense tax credit even though the rural hospital organization to which the taxpayer made a donation does not properly comply with the reports or filings required by O.C.G.A. § 48-7-29.20. |
| (17) | Website posting. The
Department shall post the following in a prominent location on the Department's
website:
|
| (18) | Preapproval Periods.
|
| (19) | Sunset Date. O.C.G.A. § 48-7-29.20, the qualified rural hospital organization expense tax credit, shall be repealed on December 31, 2029. |
| (20) | Effective Date. This regulation shall be applicable to years beginning on or after January 1, 2025. Years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credit under O.C.G.A. § 48-7-40.31. |
| (2) | Definitions. As used in this regulation, the terms "employer", "full-time job", and "qualified parolee" shall have the same meaning as in O.C.G.A. § 48-7-40.31. |
| (3) | Credit Amount. An employer who employs a qualified parolee in a full-time job for at least 40 weeks during a twelve month period, during the period beginning on January 1, 2017 and before January 1, 2020, shall be allowed a tax credit in the amount of $2,500 for each qualified parolee. |
| (4) | Per Employer Credit Limitation. The credit amount allowed under paragraph (3) of this regulation shall be further limited for each employer and shall not exceed $50,000.00 per taxable year. |
| (5) | Per Individual Limitation. An employer shall only be eligible to receive this tax credit once per individual. |
| (6) | Claiming the
Credit. For an employer to claim the qualified parolee jobs tax credit,
the employer must submit Form IT-QPJ and a listing of the qualified parolee
employees, which includes the name of the employee, social security number, the
date when the 40 week requirement was met, wages paid in the taxable year, and
any other information that the Commissioner may request, with the employer's
Georgia income tax return each year the credit is claimed.
|
| (7) | Carry Forward. In no event shall the qualified parolee jobs tax credit for a taxable year exceed the employer's income tax liability. Any credit that is claimed but not used in a taxable year shall be allowed to be carried forward to apply to the employer's succeeding three years' tax liability. |
| (8) | Pass-Through Entities. When the employer is a pass-through entity, and has no income tax liability of its own, the tax credit will pass to its individual members, shareholders, or partners based on their year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available for pass through. The credit will then pass through to its individual shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the individual shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2018. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the calendar 2018 tax year. |
| (9) | Report. On or before
September 1st of 2018, 2019, and 2020, the
Department shall issue a report to the chairpersons of the Senate Finance
Committee and the House Committee on Ways and Means, which shall include the
following statistics for the preceding taxable year:
|
| (10) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2017. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the postproduction film tax credit under O.C.G.A. § 48-7-40.26A. |
| (2) | Definitions. As used in this
regulation, the terms "affiliates", "multimarket commercial distribution",
"qualified postproduction activities", "qualified production", and "total
aggregate payroll" have the same meaning as in O.C.G.A. § 48-7-40.26A.
|
| (3) | Certification for a Postproduction Company.
|
| (4) | Qualified Postproduction
Expenditures. Qualified postproduction expenditures include
postproduction expenditures incurred in this state that are directly used in
qualified postproduction activities, including without limitation the
following: costs associated with photography and sound synchronization,
expenditures (excluding license fees) incurred with Georgia companies for sound
recordings and musical compositions, lighting, and related services and
materials; editing and related services; rental of facilities and equipment;
leasing of vehicles; costs of food and lodging; digital or tape editing, film
processing, transfers of film to tape or digital format, sound mixing, computer
graphics services, special effects services, and animation services; total
aggregate payroll; airfare, if purchased through a Georgia travel agency or
travel company; insurance costs and bonding, if purchased through a Georgia
insurance agency; and other direct postproduction costs for the project in
accordance with generally accepted entertainment industry practices. This term
includes postproduction expenditures for footage shot inside or outside of
Georgia.
|
| (5) | Credit Amount. Except as provided in paragraph (6) of this regulation, a postproduction company that meets or exceeds $500,000 in qualified postproduction expenditures in a taxable year as provided in O.C.G.A. § 48-7-40.26A and this regulation, shall be allowed a tax credit of 20 percent of the qualified postproduction expenditures; and an additional tax credit of 10 percent of the qualified postproduction expenditures shall be allowed if the qualified production expenditures under O.C.G.A. § 48-7-40.26 and upon which the qualified postproduction expenditures were incurred, were filmed in this state; an additional 5 percent of the qualified postproduction expenditures shall be allowed if the qualified postproduction expenditures were incurred in a tier 1 or tier 2 county as designated by the Commissioner of Community Affairs under O.C.G.A. § 48-7-40. |
| (6) | Credit amount for small postproduction companies. A postproduction company that has incurred at least $100,000 but less than $500,000 in qualified postproduction expenditures and has a total aggregate payroll in this state of at least $100,000 but less than $500,000 in a taxable year shall be allowed a tax credit of 20 percent of the qualified postproduction expenditures in a taxable year. |
| (7) | Credit Amount Limitation. A postproduction company's credit amount shall not exceed the amounts in paragraph (5) or (6) of this regulation, and for any single tax year shall not exceed the postproduction company's total aggregate payroll expended to employees working within this state for the taxable year that the postproduction company claims the postproduction film tax credit. Any amount in excess of this credit limit shall not be eligible for carryforward to succeeding years' tax liability, nor shall such excess amount be eligible for use against the postproduction company's quarterly or monthly payment under O.C.G.A. § 48-7-103, nor shall such excess amount be assigned, sold, or transferred to any other taxpayer. |
| (8) | Credit Cap (not applicable to small
postproduction companies under paragraph (10) of this regulation). For
taxable years beginning on or after January 1, 2018 and before January 1, 2023,
in no event shall the aggregate amount of tax credits allowed under O.C.G.A.
§ 48-7-40.26A for a postproduction
company exceed $10 million per tax year.
|
| (9) | Maximum Credit Amount per Postproduction Company and Its Affiliates which are Postproduction Companies. The maximum credit amount allowed under paragraph (8) of this regulation for any postproduction company and its affiliates which are postproduction companies shall not exceed 20 percent of the aggregate amount of postproduction film tax credits available for such taxable year under paragraph (8) of this regulation. |
| (10) | Credit Cap for small postproduction companies. For taxable years
beginning on or after January 1, 2018 and before January 1, 2023, in no event
shall the aggregate amount of tax credits allowed for postproduction companies
that have incurred at least $100,000 but less than $500,000 in qualified
postproduction expenditures and have a total aggregate payroll in this state of
at least $100,000 but less than $500,000 in a taxable year, exceed $1 million
per taxable year. The credit cap under this paragraph is separate from and
shall not be included in the aggregate credit cap under paragraph (8) of this
regulation.
|
| (11) | Preapproval for Postproduction
Companies (not applicable to Small Postproduction Companies under Paragraph
(12) of this Regulation). Any postproduction company seeking preapproval
to claim tax credits under paragraph (8) of this regulation, must submit the
appropriate forms to the Department through the Georgia Tax Center as provided
in this subparagraph.
|
| (12) | Preapproval for Small Postproduction Companies. Any postproduction
company seeking preapproval to claim tax credits under paragraphs (10) of this
regulation, must submit the appropriate forms to the Department through the
Georgia Tax Center as provided in this subparagraph.
|
| (13) | Qualified Postproduction Expenditures Not Eligible for the Postproduction Film Tax Credit. Any qualified postproduction expenditures for which a production company claims the tax credit under O.C.G.A. § 48-7-40.26 are not eligible for the postproduction film tax credit under O.C.G.A. § 48-7-40.26A and this regulation. |
| (14) | Claiming the
Postproduction Film Tax Credit. A postproduction company claiming tax
credits under paragraph (8) or (10) of this regulation must attach Form IT-PFC
to its Georgia income tax return for each tax year in which the credit is
claimed.
|
| (15) | Carryforward. Any credit that is claimed but not used in a taxable
year may be carried forward for the number of years authorized under O.C.G.A.
§ 48-7-40.26A from the close of the
taxable year in which the qualified postproduction expenditures were made and
the postproduction company established the amount of the postproduction film
tax credit for that taxable year.
|
| (16) | Audits. Any Department of Revenue audit triggered by a postproduction company's use or transfer of a postproduction film tax credit will require the postproduction company to reimburse the Department of Revenue for all costs associated with the audit. The Department of Revenue will inform the postproduction company that the audit is a postproduction film tax credit audit and thus subject to this clause prior to the commencement of the audit. Routine audits of the taxpayer's activity in Georgia are not subject to this provision. |
| (17) | Pass-Through Entities. When a postproduction company generating a postproduction film tax credit is a pass-through entity, and has no income tax liability of its own, the postproduction film tax credit will pass to its members, shareholders, or partners based on the year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the postproduction company that incurred the qualifying postproduction expenditures to establish the amount of the postproduction film tax credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The shareholders, members, or partners may not claim any excess postproduction film tax credit against their withholding tax liabilities or against the withholding tax liabilities of their payroll service providers. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2019. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2019 tax year. |
| (18) | Selling or
Transferring the Postproduction Film Tax Credit. The postproduction
company may sell or transfer in whole or in part any postproduction film tax
credit, previously claimed but not used by such postproduction company against
its income tax, to another Georgia taxpayer subject to the following
conditions:
|
| (19) | How to Sell or Transfer the Tax
Credit.
|
| (20) | Required Reporting. For taxable years beginning on or after
January 1, 2018, and before January 1, 2023, the postproduction company shall
electronically report to the Department of Revenue through the Georgia Tax
Center on Form IT-PC-RPT the monthly average number of full-time employees
subject to Georgia income tax withholding for the taxable year. Such report
shall be filed on the date the postproduction company files its Georgia income
tax return. For purposes of this paragraph, a full-time employee shall mean a
person who performs a job that requires a minimum of 35 hours a week and that
pays at or above the average wage earned in the county with the lowest average
wage earned in this state, as reported in the most recently available annual
issue of the Georgia Employment and Wages Averages Report of the Department of
Labor.
|
| (21) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. The purpose of this regulation is to provide guidance concerning the administration of the tax credit under O.C.G.A. § 48-7-29.21. |
| (2) | Definitions. As used in this regulation, the terms "qualified education donation" and "recipient" shall have the same meaning as in O.C.G.A. § 48-7-29.21. |
| (3) | Credit Amount. The amount of
qualified education donation tax credit allowed a taxpayer shall be as follows:
|
| (4) | Credit Cap. In no event shall the aggregate amount of tax credits allowed under O.C.G.A. § 48-7-29.21 exceed $5 million for calendar years ending on or before December 31, 2023. For calendar years beginning on or after January 1, 2024, the aggregate amount of tax credits allowed shall not exceed $15 million. |
| (5) | Mandatory Electronic Preapproval
Application. A taxpayer seeking preapproval to claim the tax credits
under paragraph (3) of this regulation must electronically submit Form
IT-QED-TP1 through the Georgia Tax Center. The Department will not preapprove
any qualified education donation tax credit where Form IT-QED-TP1 is submitted
or filed in any other manner.
|
| (6) | Letter of Confirmation. Form IT-QED-FUND1 shall be provided by the recipient to the taxpayer to confirm the contribution within 30 days of the contribution. |
| (7) | Claiming the Credit. A taxpayer claiming the qualified education donation tax credit, unless indicated otherwise by the Commissioner, must submit Form IT-QED-TP2 with the taxpayer's Georgia tax return when the qualified education donation tax credit is claimed. A software program's Form IT-QED-TP2 that is electronically filed with the Georgia income tax return in the manner specified by the Department satisfies this requirement. |
| (8) | Carryforward. Any credit which is claimed but not used in a taxable year shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-29.21. However, any amount in excess of the credit amount limits in paragraph (3) of this regulation shall not be eligible for carryforward to the taxpayer's succeeding years' tax liability nor shall such excess amount be claimed by or reallocated to any other taxpayer. |
| (9) | Taxpayer
Must Add Back Portion of Federal Deduction on State Return if Taxpayer Takes
State Credit. O.C.G.A. § 48-7-29.21(h)
provides that no qualified education donation tax credit shall be allowed under
O.C.G.A. § 48-7-29.21, with respect to any
amount deducted from taxable net income by the taxpayer as a charitable
contribution to a bona fide charitable organization qualified under Section
501(c)(3) of the Internal Revenue Code. If the taxpayer is allowed the state
income tax deduction in place of the charitable contribution deduction as
allowed by the Internal Revenue Service, for purposes of this paragraph such
deduction shall be considered a charitable contribution to the extent such
deduction is allowed federally. Accordingly, the taxpayer must add back to
Georgia taxable income that part of any federal deduction taken on a federal
return for which a Georgia qualified education donation tax credit is allowed
under O.C.G.A. § 48-7-29.21.
|
| (10) | Designation of Contributions. The tax credit shall not be allowed if the taxpayer directly or indirectly designates the taxpayer's qualified education donation for the direct benefit of any particular school, or program, which the taxpayer's child or children attend. |
| (11) | Report by the Nonprofit
Corporation Incorporated by the Georgia Foundation for Public Education.
The nonprofit corporation incorporated by the Georgia Foundation for Public
Education shall electronically submit Form IT-QED-FUND2 to the Department
through the Georgia Tax Center by January 12 each year. The report, Form
IT-QED-FUND2, shall be prepared on a calendar year basis and shall include the
following:
|
| (12) | Sunset Date. O.C.G.A. § 48-7-29.21, the qualified education donation tax credit, shall be repealed on December 31, 2029. |
| (13) | Effective Date. This regulation shall be applicable to years beginning on or after January 1, 2024. Years beginning before January 1, 2024 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2024 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credit under O.C.G.A. § 48-7-40.33. |
| (2) | Coordination of Agencies. The Department of Economic Development is the state agency responsible for certifying which projects qualify for the tax credit under O.C.G.A. § 48-7-40.33. |
| (3) | Definitions.
|
| (4) | Qualified Production
Expenditures. Qualified production expenditures include production
expenditures incurred in this state on direct account of qualified production
activities, including without limitation the following: set construction and
operation; wardrobe, make-up, accessories, and related services; costs
associated with photography and sound synchronization, expenditures (excluding
license fees) incurred with Georgia companies for sound recordings and musical
compositions, lighting, and related services and materials; editing and related
services; rental of facilities and equipment; leasing of vehicles; costs of
food and lodging; total aggregate payroll; talent and producer fees; technical
fees; crew fees; per diem costs paid to employees; airfare, if purchased
through a Georgia travel agency or travel company; insurance costs and bonding,
if purchased through a Georgia insurance agency; and other direct costs of
producing the project in accordance with generally accepted entertainment
industry practices; and payments to a loan-out company.
|
| (5) | Credit Amount. A production company that meets or exceeds $500,000 in qualified production expenditures in a taxable year for a musical or theatrical performance; or $250,000 in qualified production expenditures in a taxable year for a recorded musical performance which is incorporated into or synchronized with a movie, television, or interactive entertainment production; or $100,000 in qualified production expenditures in a taxable year for any other recorded musical performance, as provided in O.C.G.A. § 48-7-40.33 and this regulation, shall be allowed a tax credit of 15 percent of the qualified production expenditures; and an additional 5 percent shall be allowed for qualified production expenditures incurred in a tier 1 or tier 2 county as designated by the Commissioner of Community Affairs under O.C.G.A. § 48-7-40. |
| (6) | Credit Cap for Production Companies
and Affiliates. In no event shall the aggregate amount of tax credits
allowed under O.C.G.A § 48-7-40.33 for production
companies and their affiliates which are production companies exceed the
following amounts:
|
| (7) | Preapproval.
Before requesting preapproval from the Department, the production company must
apply for pre-certification from the Department of Economic Development to
ensure that the project meets the requirements of O.C.G.A. § 48-7-40.33. Any production company
seeking preapproval to claim tax credits under paragraphs (6) of this
regulation, must submit the appropriate forms to the Department through the
Georgia Tax Center as provided in this paragraph.
|
| (8) | Musical or Theatrical Performance or Recorded Musical Performance with
Qualified Production Expenditures in More Than One Year. A musical or
theatrical performance or recorded musical performance which occurs over two or
more years shall be considered a single project. The production company should
request preapproval for the year the applicable spending threshold is met, and
if necessary must request preapproval for any later year with qualified
production expenditures.
|
| (9) | Qualified Production Expenditures Not Eligible for the Musical Tax Credit. Any qualified production expenditures for which a production company claims the tax credit under O.C.G.A. § 48-7-40.26 are not eligible for the musical tax credit under O.C.G.A. § 48-7-40.33 and this regulation. |
| (10) | Claiming the
Musical Tax Credit. A production company claiming tax credits under
paragraph (6) of this regulation must attach Form IT-MC, and their final
certification from the Georgia Department of Economic Development to its
Georgia income tax return for each tax year in which the credit is claimed.
|
| (11) | Carryforward. Any credit
that is claimed but not used in a taxable year may be carried forward for five
years from the close of the taxable year in which the qualified production
expenditures were made and the production company established the amount of the
musical tax credit for that taxable year.
|
| (12) | Audits. Any Department of Revenue audit triggered by a production company's use of a musical tax credit will require the production company to reimburse the Department of Revenue for all costs associated with the audit. The Department of Revenue will inform the production company that the audit is a musical tax credit audit and thus subject to this clause prior to the commencement of the audit. Routine audits of the taxpayer's activity in Georgia are not subject to this provision. |
| (13) | Pass-Through Entities. When a production company generating a musical tax credit is a pass-through entity, and has no income tax liability of its own, the musical tax credit will pass to its members, shareholders, or partners based on the year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the production company that incurred the qualifying production expenditures to establish the amount of the musical tax credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The shareholders, members, or partners may not claim any excess musical tax credit against their withholding tax liabilities or against the withholding tax liabilities of their payroll service providers. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2019. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2019 tax year. |
| (14) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credits under O.C.G.A. § 48-7-40.32. |
| (2) | Coordination of Agencies. Under O.C.G.A. § 48-7-40.32, the Department of Community Affairs and the Department of Economic Development are the state agencies responsible for designating zones for the tax credits and the Department of Community Affairs is the state agency responsible for certifying taxpayers for the tax credits. |
| (3) | Definitions. The terms "certified entity", "certified investor", "eligible business", "full-time equivalent", "local government", "maintained job", "qualified rehabilitation expenditure", "rural zone", "year one", and "years one through five" as used in this regulation are defined in the Department of Community Affairs Regulation . |
| (4) | Rural Zone Jobs Tax Credit.
A certified entity that creates at least two new full-time equivalent jobs in a
rural zone shall be allowed a tax credit in the amount of $2,000 for each new
full-time equivalent job in year one. Such certified entity shall receive rural
zone jobs tax credit in years two through five for each new full-time
equivalent job created in year one, provided the new full-time equivalent jobs
are maintained in each year, and provided the certified entity maintains at
least two new full-time equivalent jobs.
|
| (5) | Rural
Zone Property Tax Credit. A certified investor that acquires and
develops property in a rural zone shall be allowed a tax credit if an eligible
business that claims the tax credit under paragraph (4) of this regulation is
located in the investment property; or if an eligible business is located in
the investment property and that eligible business maintains a minimum of two
full-time equivalent jobs for each year the rural zone property tax credit is
claimed.
|
| (6) | Rural Zone Qualified Rehabilitation
Expenditures Tax Credit. A certified entity or certified investor that
meets the minimum historic preservation standards provided by the Department of
Community Affairs, that has qualified rehabilitation expenditures, shall
receive the rural zone qualified rehabilitation expenditures tax credit for
three years beginning with the year the property is placed in service. The
certified entity or certified investor shall maintain a minimum of two
full-time equivalent jobs for each year the tax credit is claimed; or with
respect to a certified investor, if an eligible business is located in the
investment property, such eligible business must maintain a minimum of two
full-time equivalent jobs for each year the tax credit is claimed.
|
| (7) | Claiming the Rural Zone Tax Credit(s). For a certified entity or certified investor to claim the rural zone jobs tax credit, rural zone property tax credit or the rural zone qualified rehabilitation expenditures tax credit, the certified entity or certified investor must submit Form IT-RZ and their Department of Community Affairs certification(s), and any other information that the Commissioner may request, with the certified entity's or certified investor's Georgia income tax return each year the credit is claimed. |
| (8) | Carryforward. In no event shall the rural zone tax credit for a taxable year exceed the certified entity's or certified investor's income tax liability. Any unused credit in a taxable year may be carried forward for the number of years authorized under O.C.G.A. § 48-7-40.32 from the close of the taxable year in which the credit was claimed. |
| (9) | Pass-Through Entities. When the certified entity or certified investor is a pass-through entity, and has no income tax liability of its own, the tax credit will pass to its individual members, shareholders, or partners based on their year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available for pass through. The credit will then pass through to its individual shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the individual shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2019. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the calendar 2019 tax year. |
| (10) | Coordination with Other Tax Credits. A certified entity or certified investor that claims the rural zone tax credit for a project shall not be allowed to use the same qualified rehabilitation expenditures to generate and claim any additional state income tax credits, including, but not limited to, the historic rehabilitation tax credit. Jobs created by, arising from, or connected in any way with a project claimed under the rural zone jobs tax credit are not eligible to be used toward other job related tax credits. |
| (11) | Sunset Date. O.C.G.A. § 48-7-40.32, the rural zone tax credits, shall be repealed on December 31, 2032. |
| (12) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2024. Taxable years beginning before January 1, 2024 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2024 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the income tax credit under O.C.G.A. § 33-1-25. |
| (2) | Coordination of Agencies. The Department of Community Affairs is the state agency responsible for certifying taxpayers for the income tax credit under O.C.G.A. § 33-1-25. |
| (3) | Definitions.
|
| (4) | Credit Amount. A rural investor that makes a capital investment in a rural fund, under O.C.G.A. § 33-1-25, may claim a tax credit in an amount equal to the applicable percentage for such credit allowance date multiplied by the purchase price paid to the rural fund for the capital investment. |
| (5) | Claiming the Credit. For a rural investor to claim the agribusiness and rural jobs tax credit against income tax liability, the rural investor must submit Form IT-ARJ and their certification(s) from the Department of Community Affairs, and any other information that the Commissioner may request, with the rural investor's Georgia income tax return each year the income tax credit is claimed. |
| (6) | Carry forward. In no event shall the agribusiness and rural jobs tax credit for a taxable year exceed the rural investor's income tax liability. Any unused income tax credit in a taxable year may be carried forward to subsequent taxable years. |
| (7) | Pass-Through Entities. When the rural investor is a pass-through entity, and has no income tax liability of its own, the income tax credit will pass to individual members, shareholders, or partners of that entity in accordance with the provisions of any agreement among the partners, members, or shareholders of that entity provided that the entity or person that claims the income tax credit must be subject to Georgia income tax. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available for pass through. The credit will then pass through to its individual shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are initially available for use as a credit by the individual shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2019. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the calendar 2019 tax year. |
| (8) | Recapture. The Department of Community Affairs can recapture the agribusiness and rural jobs tax credit as provided in Department of Community Affairs Regulation . |
| (9) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2018. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the income tax credit under O.C.G.A. § 48-7-40.34. |
| (2) | Definitions.
|
| (3) | Credit Amount. For tax years beginning on or after January 1, 2019, and ending on or before December 31, 2026, a Class III railroad shall be allowed a tax credit in the amount of 50 percent of the qualified railroad track maintenance expenditures paid or incurred by such Class III railroad during the taxable year. |
| (4) | Credit Amount Limitation. The credit amount allowed under paragraph (3) of this regulation shall be further limited for each Class III railroad and shall not exceed $3,500 multiplied by each mile of railroad track owned or leased in Georgia as of the close of the taxable year by such Class III railroad. Double track is treated as multiple lines of railroad track, rather than as a single line of railroad track. Thus, one mile of single track is one mile, but one mile of double track is two miles. |
| (5) | Per Mile Limitation. The credit allowed under O.C.G.A. § 48-7-40.34 and this regulation shall only be allowed once for each mile of railroad track in each taxable year. |
| (6) | Reduction of basis. If a credit is allowed under O.C.G.A. § 48-7-40.34 and this regulation with respect to any railroad track, the basis of such railroad track shall be reduced by the amount of the credit allowed. Such reduction shall be treated in the same manner as provided by Section 45G of the Internal Revenue Code of 1986. |
| (7) | Preapproval.
A taxpayer seeking preapproval to claim the tax credit under O.C.G.A. § 48-7-40.34 must electronically
submit Form IT-RTM-AP through the Georgia Tax Center along with documentation
that substantiates the miles of railroad track owned or leased by the taxpayer
in Georgia, and any other information that the Commissioner may request. The
Department will not preapprove any taxpayer where Form IT-RTM-AP is submitted
or filed in any other manner. If the taxpayer is a disregarded entity then Form
IT-RTM-AP should be electronically submitted in the name of the owner of the
disregarded entity. If Form IT-RTM-AP is submitted before the credit is earned
or before the end of the taxpayer's tax year, the taxpayer must estimate their
credit amounts on Form IT-RTM-AP. The amount of tax credit claimed on the
taxpayer's applicable Georgia income tax return must be based on the actual
amount of qualified railroad track maintenance expenditures. If the taxpayer is
preapproved for an amount that exceeds the amount that is calculated using the
actual amount of the qualified railroad track maintenance expenditures when the
return is filed, the excess preapproved amount cannot be claimed by the
taxpayer, nor shall the excess preapproved amount be claimed by, reallocated
to, assigned to, or transferred or sold to any other taxpayer.
|
| (8) | Claiming the Credit. To claim the railroad track maintenance tax credit, the taxpayer must submit Form IT-RTM, and any other information that the Commissioner may request, with the taxpayer's Georgia income tax return each year the tax credit is claimed. A software program's Form IT-RTM that is electronically filed with the Georgia income tax return in the manner specified by the Department satisfies this requirement. |
| (9) | Carryforward. Any credit which is claimed but not used in a taxable year shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-40.34. |
| (10) | Pass-Through Entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage and the limitations of this regulation. The credit forms will initially be filed with the tax return of the taxpayer to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2020. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the calendar 2020 tax year. |
| (11) | Selling or
Transferring the Railroad Track Maintenance Tax Credit. The taxpayer may
sell or transfer in whole or in part any railroad track maintenance tax credit
previously claimed but not used by such taxpayer against its income tax, to
another Georgia taxpayer subject to the following conditions:
|
| (12) | How to Sell or Transfer
the Railroad Track Maintenance Tax Credit. The taxpayer may sell or
transfer the railroad track maintenance tax credit directly to a Georgia
taxpayer (or multiple Georgia taxpayers as provided in subparagraph (11)(a) of
this regulation). A pass-through entity may make an election to sell the
railroad track maintenance tax credit preapproved in a taxable year at the
entity level. If the pass-through entity makes the election to sell the
railroad track maintenance tax credit at the entity level, the credit does not
pass through to the shareholders, members, or partners. In all cases, the
effect of the sale of the credit on the income of the seller and buyer of the
credit will be the same as provided in the Internal Revenue Code.
|
| (13) | Report. On or before September 1, 2020, 2021, 2022, 2023, 2024,
2025, 2026, and 2027 the Department shall issue a report to the chairpersons of
the Senate Finance Committee and the House Committee on Ways and Means, which
shall include the following statistics for the preceding taxable year:
|
| (14) | Sunset Date. O.C.G.A. § 48-7-40.34, the railroad track maintenance tax credit, shall be repealed on January 1, 2027. |
| (15) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the income tax credit under O.C.G.A. § 48-7-40.36. |
| (2) | Coordination of Agencies. The Commissioner shall be authorized to consult with the Georgia Forestry Commission as necessary to administer the timber tax credit. |
| (3) | Definitions.
|
| (4) | Credit Amount. A taxpayer shall be allowed a tax credit in an amount equal to 100 percent of such taxpayer's timber casualty loss; provided that the credit amount shall not exceed the number of taxpayer's affected acres of eligible timber property in such disaster areas multiplied by $400. The credit shall be computed and claimed separately for each county with eligible timber property. |
| (5) | Credit Cap. In no event shall the total amount of tax credits allowed under O.C.G.A. § 48-7-40.36 exceed $200 million. |
| (6) | Preapproval. Any taxpayer seeking preapproval to claim the tax
credit under O.C.G.A. § 48-7-40.36 must submit the
appropriate forms to the Department as provided in this paragraph.
|
| (7) | Required Reporting by Taxpayer when
90 percent requirement or restoration is met. Each taxpayer that
receives preapproval for the timber tax credit, must certify to the Department:
|
| (8) | Claiming the Credit. A taxpayer that has received preapproval from
the Department, and has submitted the required reporting under paragraph (7) of
this regulation must claim the timber tax credit on their applicable Georgia
income tax return even if the credit is sold or transferred.
|
| (9) | Carry forward. Any timber tax credit that is claimed but not used or refunded in a taxable year shall be allowed to be carried forward for ten years from the close of the taxable year in which the credits are claimed. |
| (10) | Pass-Through Entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage and the limitations of this regulation. The credit forms will initially be filed with the tax return of the taxpayer to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2020. The partnership passes the credit to a calendar year partner. The credit is available for use (including refundability) by the individual partner beginning with the calendar 2020 tax year. |
| (11) | Conditions and Limitations.
|
| (12) | Selling or Transferring the Timber
Tax Credit. The taxpayer may sell or transfer in whole or in part any
timber tax credit, previously claimed but not used by such taxpayer against its
income tax and not refunded to such taxpayer, to a single Georgia taxpayer
subject to the following conditions:
|
| (13) | How to Sell or Transfer the Timber Tax Credit. The taxpayer may
sell or transfer the timber tax credit directly to a single Georgia taxpayer. A
pass-through entity may make an election to sell the timber tax credit claimed
in a taxable year at the entity level. If the pass-through entity makes the
election to sell the timber tax credit at the entity level, the credit does not
pass through to the shareholders, members, or partners. In all cases, the
effect of the sale of the credit on the income of the seller and buyer of the
credit will be the same as provided in the Internal Revenue Code.
|
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credit under O.C.G.A. § 48-7-40.1A. |
| (2) | Definitions.
|
| (3) | Credit Amount. A personal protective equipment manufacturer that qualifies for the jobs tax credit under O.C.G.A. § 48-7-40 or 48-7-40.1 and the applicable jobs tax credit regulations and claims the jobs tax credit as provided in Revenue Regulation shall be allowed an additional $1,250 personal protective equipment manufacturer jobs tax credit for those qualifying jobs to the extent they are engaged in the qualifying activity of manufacturing personal protective equipment in Georgia during the taxable year. |
| (4) | Maximum Amount of Credit. The personal protective equipment manufacturer jobs tax credit may be used to offset 100% of the personal protective equipment manufacturer's Georgia income tax liability derived from operations within this state. |
| (5) | Eligibility. A personal protective equipment manufacturer shall be
eligible for the additional personal protective equipment manufacturer jobs tax
credit under paragraph (3) of this regulation at an individual establishment of
the business. If more than one business activity is conducted at the
establishment, then only those jobs engaged in the qualifying activity of
manufacturing personal protective equipment in Georgia shall be eligible for
the additional personal protective equipment manufacturer jobs tax credit.
|
| (6) | Conditions and Limitations. The personal protective equipment
manufacturer jobs tax credit shall be allowed subject to the conditions and
limitations under O.C.G.A. §§ 48-7-40 or
48-7-40.1 and the applicable jobs
tax credit regulations. The personal protective equipment manufacturer jobs tax
credit shall be disallowed during any year that the taxpayer does not qualify
as a personal protective equipment manufacturer but the PPE manufacturer may
requalify in a later year if they meet the requirements.
|
| (7) | Claiming the Credit. For a
personal equipment manufacturer to claim the personal protective equipment
manufacturer jobs tax credit, the personal protective equipment manufacturer
must submit Form IT-CA with the personal protective equipment manufacturer's
Georgia income tax return each year the credit is claimed. A software program's
Form IT-CA that is electronically filed with the Georgia income tax return in
the manner specified by the Department satisfies this requirement.
|
| (8) | Carryforward. Any personal protective equipment manufacturer jobs tax credit which is claimed but not used in a taxable year may be carried forward for the number of years authorized under O.C.G.A. § 48-7-40.1A from the close of the taxable year in which the qualifying personal protective equipment manufacturer jobs were created. |
| (9) | Pass-Through Entities. When the personal protective equipment manufacturer is a pass-through entity, and has no income tax liability of its own, the tax credit will pass to its individual members, shareholders, or partners based on their year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available for pass through. The credit will then pass through to its individual shareholders, members, or partners to be applied against the tax liability on their income tax returns. The shareholders, members, or partners may not claim any excess personal protective equipment manufacturer jobs tax credit against their withholding tax liabilities. The credits are available for use as a credit by the individual shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2021. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the calendar 2021 tax year. |
| (10) | Sunset Date. No personal protective equipment manufacturer jobs tax credit shall be claimed and allowed for any jobs created on or after January 1, 2025; provided, however, jobs created before such date are eligible for the remaining installments provided the requirements of O.C.G.A. §§ 48-7-40, 48-7-40.1, and 48-7-40.1A and the related regulations are met. |
| (11) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the tax credit under O.C.G.A. § 48-7-40.1B. |
| (2) | Definitions.
|
| (3) | Credit Amount. A medical equipment and supplies manufacturer or a pharmaceutical and medicine manufacturer, that qualifies for the job tax credit under O.C.G.A. § 48-7-40 or 48-7-40.1 and the applicable job tax credit regulations thereunder, shall be allowed an additional $1,250 life sciences manufacturing job tax credit for jobs created on or after July 1, 2021 that are engaged in the qualifying activity of manufacturing medical equipment or supplies or manufacturing pharmaceuticals or medicine in Georgia during the taxable year. |
| (4) | Maximum Amount of Credit. The life sciences manufacturing job tax credit may be used to offset 100% of the medical equipment and supplies manufacturer's and pharmaceutical and medicine manufacturer's Georgia income tax liability derived from operations within this state. |
| (5) | Eligibility. A medical
equipment and supplies manufacturer and pharmaceutical and medicine
manufacturer shall be eligible for the life sciences manufacturing job tax
credit under paragraph (3) of this regulation at an individual establishment of
the business. If more than one business activity is conducted at the
establishment, then only those jobs engaged in the qualifying activity of
manufacturing medical equipment or supplies or manufacturing pharmaceuticals or
medicine in Georgia shall be eligible for the life sciences manufacturing job
tax credit.
|
| (6) | Conditions and Limitations. The life sciences manufacturing job
tax credit shall be allowed subject to the conditions and limitations under
O.C.G.A. §§ 48-7-40 or
48-7-40.1 and the applicable job
tax credit regulations. The life sciences manufacturing job tax credit shall be
disallowed during any year that the taxpayer does not qualify as a medical
equipment and supplies manufacturer or a pharmaceutical and medicine
manufacturer but the medical equipment and supplies manufacturer or the
pharmaceutical and medicine manufacturer may requalify in a later year if they
meet the requirements.
|
| (7) | Cannot claim the Personal Protective Equipment Manufacturer Jobs Tax Credit for the Same Jobs. Taxpayers may not claim the life sciences manufacturing job tax credit for any job for which the taxpayer claims the tax credit provided under Code Section 48-7-40.1A. Jobs for which the personal protective equipment manufacturer jobs tax credit is claimed under Code Section 48-7-40.1A shall be excluded from all calculations for the life sciences manufacturing job tax credit under this regulation. Also, in no case can the number of jobs claimed under Code Section 48-7-40.1A and Code Section 48-7-40.1B together exceed the number of jobs that are included in the job tax credit computation. |
| (8) | Claiming the Credit. For a
medical equipment and supplies manufacturer or pharmaceutical and medicine
manufacturer to claim the life sciences manufacturing job tax credit, the
medical equipment and supplies manufacturer or pharmaceutical and medicine
manufacturer must submit Form IT-CA with the medical equipment and supplies
manufacturer or pharmaceutical and medicine manufacturer's Georgia income tax
return each year the credit is claimed. A software program's Form IT-CA that is
electronically filed with the Georgia income tax return in the manner specified
by the Department satisfies this requirement.
|
| (9) | Carryforward. Any life sciences manufacturing job tax credit which is claimed but not used in a taxable year may be carried forward for the number of years authorized under O.C.G.A. § 48-7-40.1B from the close of the taxable year in which the life sciences manufacturing job tax credit jobs were created. |
| (10) | Pass-Through Entities. When the medical equipment and supplies manufacturer or the pharmaceutical and medicine manufacturer is a pass-through entity, and has no income tax liability of its own, the tax credit will pass to its individual members, shareholders, or partners based on their year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the pass-through entity to establish the amount of the credit available for pass through. The credit will then pass through to its individual shareholders, members, or partners to be applied against the tax liability on their income tax returns. The shareholders, members, or partners may not claim any excess life sciences manufacturing job tax credit against their withholding tax liabilities. The credits are available for use as a credit by the individual shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2022. The partnership passes the credit to a calendar year partner. The credit is available for use by the individual partner beginning with the 2022 calendar tax year. |
| (11) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. The purpose of this regulation is to provide guidance concerning the administration of the tax credit under O.C.G.A. § 48-7-29.24. |
| (2) | Coordination of Agencies. The Division of Family and Children Services of the Georgia Department of Human Services is the state agency responsible for certifying foster child support organizations and shall establish and maintain a web-based application process for certifying foster child support organizations as qualified organizations. |
| (3) | Definitions.
|
| (4) | Certification of Qualified Foster
Child Support Organization. The foster child support organization must
apply for certification as a qualified foster child support organization using
the web-based application process maintained by the Division of Family and
Children Services of the Georgia Department of Human Services on its website
at: https://dfcs.georgia.gov/
|
| (5) | Credit Cap. In no event shall the aggregate amount of tax credits allowed under O.C.G.A. § 48-7-29.24 exceed $20 million per calendar year or as otherwise provided under O.C.G.A. § 48-7-29.24. |
| (6) | Credit Amount. From January
1 to June 30 of each calendar year, the amount of qualified foster child
donation credit allowed to a taxpayer shall be as follows:
|
| (7) | Form 990. Each qualified foster child support organization must submit a copy of its most recent Form 990 to the Department through the Georgia Tax Center by May 15. If the qualified foster child support organization filed the Form 990-N, then it must submit a copy of the filing confirmation or the listing by the United States Internal Revenue Service of the Form 990-N filing to the Department. If the qualified foster child support organization is not required by federal law to file a Form 990, then the organization must submit the Form 990 Proxy Spreadsheet found on the Department's website through the Georgia Tax Center by May 15. |
| (8) | Contributions
Report.
|
| (9) | Website Posting by the
Department. The following shall be posted on the Department's website:
|
| (10) | Confidential Taxpayer Information. Except for the information published under paragraph (9), all information or reports relative to O.C.G.A. § 48-7-29.24 and this regulation that were provided by qualified foster child support organizations to the Department shall be confidential taxpayer information, governed by O.C.G.A. §§ 48-2-15, 48-7-60, and 48-7-61, whether such information relates to the contributing taxpayer or the qualified foster child support organization. |
| (11) | Mandatory
Electronic Preapproval of the Contribution.
|
| (12) | Letter of Confirmation. Form IT-QFCD-FUND1 shall be provided by the foster child support organization to the taxpayer to confirm the contribution within 30 days of the contribution. |
| (13) | Claiming the Credit. A taxpayer claiming the qualified foster child donation credit, unless indicated otherwise by the Commissioner, must submit Form IT-QFCD-TP2 with the taxpayer's Georgia tax return when the qualified foster child donation credit is claimed. An electronically filed Georgia income tax return that includes the software's electronic Form IT-QFCD-TP2 satisfies this requirement. |
| (14) | E-filing Attachment Requirements. If a taxpayer claiming the credit electronically files their tax return, the Form IT-QFCD-FUND1 shall be required to be attached to the return only if the Internal Revenue Service allows such attachments when the data is transmitted to the Department. In the event the taxpayer files an electronic return and such information is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia return, such information shall be maintained by the taxpayer and made available upon request by the Commissioner. |
| (15) | Carryforward. Any credit that is claimed but not used in a taxable year shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-29.24. However, any amount in excess of the credit amount limits in paragraph (6) of this regulation shall not be eligible for carryforward to the taxpayer's succeeding years' tax liability, nor shall such excess amount be claimed by or reallocated to any other taxpayer. |
| (16) | Taxpayer
Must Add Back Portion of Federal Deduction on State Return if Taxpayer Takes
State Credit. O.C.G.A. § 48-7-29.24(k)
provides that no qualified foster child donation credit shall be allowed under
O.C.G.A. § 48-7-29.24 with respect to any
amount deducted from taxable net income by the taxpayer. If the taxpayer is
allowed the state income tax deduction as allowed by the Internal Revenue
Service, for purposes of this paragraph, such deduction shall be considered a
charitable contribution to the extent such deduction is allowed federally.
Accordingly, the taxpayer must add back to Georgia taxable income that part of
any federal deduction taken on a federal return for which a Georgia qualified
foster child donation credit is allowed under O.C.G.A. § 48-7-29.24.
|
| (17) | Website Posting by Qualified Foster Child Support Organization. By
April 1 of each year, each qualified foster child support organization shall
post on its website in a prominent place a copy of its prior year's annual
budget.
|
| (18) | Designation of Contributions. The tax credit shall not be allowed if the taxpayer directly or indirectly designates the taxpayer's qualified contributions to any particular purpose or for the direct benefit of any particular individual, whether or not such individual is a dependent of the taxpayer. |
| (19) | Direct Contracts. The tax credit shall not be allowed for contributions made to a qualified foster child support organization if the taxpayer directly or indirectly operates, owns, or is a subsidiary of an association, organization, or other entity that contracts directly with such qualified foster child support organization. |
| (20) | Soliciting Contributions. In soliciting contributions, a foster child support organization shall not represent that in exchange for contributing to the foster child support organization, a taxpayer shall receive a direct or particular benefit. |
| (21) | Failure to
Comply and Revocation of Qualified Status.
|
| (22) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. The purpose of this regulation is to provide guidance concerning the administration of the tax credit under O.C.G.A. § 48-7-29.25. |
| (2) | Definitions.
|
| (3) | Certification of Qualified Law
Enforcement Foundation. The law enforcement foundation must apply for
certification as a qualified law enforcement foundation and submit Form IT-LEF
to the Department through the Georgia Tax Center. The Department will not
process any Form IT-LEF that is submitted or filed in any other manner.
|
| (4) | Law Enforcement Foundation Designation Change. If a qualified law enforcement foundation that was designated by a local law enforcement unit as the sole and exclusive foundation for the local law enforcement unit is no longer designated as such, then the qualified law enforcement foundation or the local law enforcement unit shall notify the Department in writing. The law enforcement foundation shall be removed from the Department's list of approved qualified law enforcement foundations, and the Department shall not preapprove any future contributions to such law enforcement foundation. If a new law enforcement foundation is designated by the local law enforcement unit as the new sole and exclusive foundation for the local law enforcement unit, then the new law enforcement foundation shall apply for certification as a qualified law enforcement foundation. |
| (5) | Credit Cap. In no event shall the aggregate amount of tax credits allowed under O.C.G.A. § 48-7-29.25 exceed $75 million per calendar year for years beginning on or after January 1, 2023 and ending on or before December 31, 2027, unless otherwise provided by law. |
| (6) | Individual Law Enforcement
Foundation Limitation. For each calendar year of the credit, no more
than $3 million of credit shall be preapproved for qualified contributions to
any individual law enforcement foundation. On the day and time any Form
IT-QLED-TP1 is received during a calendar year that causes the individual law
enforcement foundation limitation in this paragraph to be reached, then any
subsequent credit preapproval applications for qualified contributions to such
individual law enforcement foundation shall be denied. There shall be no
proration based on the date an application is received. The Department shall
notify such individual law enforcement foundation if the $3 million limitation
is reached.
|
| (7) | Credit Amount. Subject to the aggregate limit provided in
paragraph (5) and the individual law enforcement foundation limitation provided
in paragraph (6), for calendar years beginning on January 1, 2023, and ending
on or before December 31, 2027, the amount of qualified law enforcement
donation credit allowed to a taxpayer shall be as follows:
|
| (8) | Form 990. Each qualified law enforcement foundation must submit a copy of its most recent Form 990 to the Department by May 15. If the qualified law enforcement foundation filed the Form 990-N, then it must submit a copy of the filing confirmation or the listing by the Internal Revenue Service of the Form 990-N filing to the Department. If the qualified law enforcement foundation is not required by federal law to file a Form 990, then the foundation must submit the Form 990 Proxy Spreadsheet found on the Department's website through the Georgia Tax Center by May 15. |
| (9) | Contributions Report.
|
| (10) | Website Posting by the
Department. The following shall be posted on the Department's website:
|
| (11) | Confidential Taxpayer Information. Except for the information published under paragraph (10), all information or reports relative to O.C.G.A. § 48-7-29.25 and this regulation that were provided by qualified law enforcement foundations to the Department shall be confidential taxpayer information, governed by O.C.G.A. §§ 48-2-15, 48-7-60, and 48-7-61, whether such information relates to the contributing taxpayer or the qualified law enforcement foundation. |
| (12) | Mandatory
Electronic Preapproval of the Contribution.
|
| (13) | Letter of Confirmation. Form IT-QLED-LEF1 shall be provided by the law enforcement foundation to the taxpayer to confirm the contribution within 30 days of the contribution. |
| (14) | Claiming the Credit. A taxpayer claiming the qualified law enforcement donation credit, unless indicated otherwise by the Commissioner, must submit Form IT-QLED-TP2 with the taxpayer's Georgia tax return when the qualified law enforcement donation credit is claimed. An electronically filed Georgia income tax return that includes the software's electronic Form IT-QLED-TP2 satisfies this requirement. |
| (15) | E-filing Attachment Requirements. If a taxpayer claiming the credit electronically files their tax return, the Form IT-QLED-LEF1 shall be required to be attached to the return only if the Internal Revenue Service allows such attachments when the data is transmitted to the Department. In the event the taxpayer files an electronic return and such information is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia return, such information shall be maintained by the taxpayer and made available upon request by the Commissioner. |
| (16) | Carryforward. Any credit that is claimed but not used in a taxable year shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-29.25. However, any amount in excess of the credit amount limits in paragraph (7) of this regulation shall not be eligible for carryforward to the taxpayer's succeeding years' tax liability, nor shall such excess amount be claimed by or reallocated to any other taxpayer. |
| (17) | Taxpayer
Must Add Back Portion of Federal Deduction on State Return if Taxpayer Takes
State Credit. O.C.G.A. § 48-7-29.25(k)
provides that no qualified law enforcement donation credit shall be allowed
under O.C.G.A. § 48-7-29.25 with respect to any
amount deducted from taxable net income by the taxpayer. If the taxpayer is
allowed the state income tax deduction as allowed by the Internal Revenue
Service, for purposes of this paragraph, such deduction shall be considered a
charitable contribution to the extent such deduction is allowed federally.
Accordingly, the taxpayer must add back to Georgia taxable income that part of
any federal deduction taken on a federal return for which a Georgia qualified
law enforcement donation credit is allowed under O.C.G.A. § 48-7-29.25.
|
| (18) | Website Posting by Qualified Law Enforcement Foundation. By April 1st of each year, each qualified law enforcement foundation shall post on its website in a prominent place a copy of its affiliated local law enforcement unit's prior year's annual budget containing the total amount of funds received from the local law enforcement unit's local governing body. If a qualified law enforcement foundation does not maintain a public website, such information shall be otherwise made available by the foundation to the public upon request. |
| (19) | Designation of Contributions. The tax credit shall not be allowed if the taxpayer directly or indirectly designates the taxpayer's qualified contributions to any particular purpose or for the direct benefit of any particular individual. |
| (20) | Direct Contracts. The tax credit shall not be allowed for contributions made to a qualified law enforcement foundation if the taxpayer directly or indirectly operates, owns, or is a subsidiary of an association, organization, or other entity that contracts directly with such qualified law enforcement foundation or its affiliated local law enforcement unit. |
| (21) | Soliciting Contributions. In soliciting contributions, a law enforcement foundation shall not represent or direct a local law enforcement unit to represent that, in exchange for contributing to the law enforcement foundation, a taxpayer shall receive a direct or particular benefit. |
| (22) | Failure to Comply and Revocation of Qualified Status.
|
| (23) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. |
| (1) | Purpose. This regulation provides guidance concerning the implementation and administration of the rural health care professional credit under O.C.G.A. § 48-7-29.26. |
| (2) | Definitions. As used in this
regulation:
|
| (3) | Credit Amount.
|
| (4) | Credit Limitations.
|
| (5) | Credit Cap. In no event shall the aggregate amount of tax credits allowed for rural health care professionals exceed $2 million per taxable year. |
| (6) | Preapproval for the Credit.
All taxpayers must be preapproved to claim the rural health care professional
credit and must submit the appropriate forms to the Department through the
Georgia Tax Center as provided in this paragraph.
|
| (7) | Claiming the Credit. A taxpayer claiming the rural health care professional credit, unless indicated otherwise by the Commissioner, must claim the credit on Schedule 2 of the Georgia Form 500, Individual Income Tax Return. Each individual taxpayer must use the credit code 154 and include the credit certificate number for the credit. If both taxpayers are claiming the credit on a married filing joint return, then both credit certificate numbers must be included on the return. |
| (8) | List of Rural Counties. The list of rural counties for purposes of the rural health care professional credit is provided on the following webpage: https://dor.georgia.gov/listing-rural-counties-purposes-rural-physician-credit. |
| (9) | Sunset Date. O.C.G.A. § 48-7-29.26, the rural health care professional credit, shall be repealed on December 31, 2029. |
| (10) | Effective Date. This regulation shall be applicable to taxable years beginning on or after January 1, 2024. |