Information on income tax credits for Georgia businesses

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.. R400
.MI \qq1
:r:5 Georgia Department of Revenue (Revised 10-16-97)
Information on Income Tax Credits for Georgia Businesses

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Ta~ble of Contents

A. Job Tax Credit

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g-: Investment Tax Credit

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B-1

C. Optional Invesnnent,Tax Credit D. Empk:'ee Retraining Tax Credit E. Employer Credit for Child Care


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, C-l D-l
, E-1

F. Basic Skills Education Tax Credit

,

~. Tax CrearL for Increasing Research .Activities
~pplicable to taxable years beginning on or after 1-1-98')

H. Tax Credit for Rapidly Growing c.- ._~-~-"- .i1ess (Applicable to taxabi~ years begir..:..~~= _.1 or after 1-1-98)

, F-l G-l
H-l

Georgia Deparnnent ofRevenue :!70 \Vashington Street Atlanta. Georgia 30334

Job Ta'x Credit.

The Georgia Job Tax. Credit program encourages economic development in the state of

Georgia by providing an incentive to businesses to locate and expand in the state. ," This

-,

,

program provides tax. credits which may be used to offset corporate and individual,income',

taxes. The credits are available for certain business enterprises that create and retain new

full-time employee jobs in Georgia.

The job tax. credit is available for any business, or the headquarters of any such business, which is engaged in manufacturing, warehousing and distribution, processing, telecommwrications. tourism. and research and development industries. For purposes of this credit, counties in the state are ranked into three different tiers of less developed c6lIDties. These rankings are based upon economic development factors and are determined hy the Deparnnent ofCommumry Affairs on an annual basis. Tier 1 includes the least developed counties with tier 2 and tier 3 including successively more developed counties. Tier 1 treatment is also availi.lble for certain less developed census tracts within tier 2 or tier 3 counties, 'lbe less developed census tract program requires that 30% of the new full-time Jobs be held by reSIdents of the less developed census tract or tier 1 county. See pages A-5 through .-\-7 for the 1996 ranking of counties and a list of less developed census tracts.
Business enterprises that locate in counties designated as tier 1, tier 2, or tier 3 less developed areas. or in a less developed census tract area. are eligible for an annual credit for income taxes for each new full-time employee job created for five years. beginning with years two through six after the creation of the job. Replacement jobs or transferred jobs do not generate a credit.

A-I

Number of Required Jobs. .-\ minimum number of new jobs is required in each tier to

qualify for the tax credit. In tier 1 counties. 5 or more new full-time jobs are required. In

tier 2 counties, 15 or more new full-time jobs are required. In tier 3 counties, 25 or more'

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new full-time jobs are.required. These minimum new job n~bers are applicable'to taxable

years begipning on or after January 1, 1996. For taxable years beginning prior to January

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1, 1996, the minimwn number of new jobs reqcr' ~ was 10 for tier 1, 25 for tier 2 and SO for

tier 3.

Amount of Credit. The amount of the credit r~eived for each new full-time job varies by
r
tier. The amount of the credit is $2,500 for jobs located in tier 1 counties, $1,500 for jobs
located in tier 2 counties, and $500 for jobs 10c.,._1 in tier 3 counties. An additional $500
credi~ is available if the jobs are to be located within the jurisdiction of a joint development
authority.

Limit on Credit Taken. The Job tax credit that is used'in any taxable year may not exceed 50 'percent of the taxpayer's Georgia income tax liability \vhich is attributable to income derived from operatiops in this state for that taxable year.

Credit Carryforward. Any job tax credit which is claimed but not used in a taxable year . may be carried forward for 10 years from the close of taxable year in which the qualifying new' jobs were created. For example. 'job tax credits created by an employment increase in year one, but not used in year two. may be carried forward to.years three through eleven.

Pass-Through of Credit. Business e" j~S operating as pass-through entities may pass-through available job tax credlts. S" corporations will apply the job tax credit to corporate income tax liability at the entity leveL if one exists, and then apportion any
A-2

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remaining credit to shareholders based on their percentage share of ownership. Partnerships will apportion the credit to partners in the same manner as partnership income. Limited liability companies will apportion the credit to shareholders based on perc~~e' of ownership.
Coordination With Investment Tax Credit. In general, taxpayers may not claim, or cany
forward a job tax credit for a given project if an investment tax credit is claimed or carried forward for the same project. Taxpayers may choose to take either the job tax credit or the investment tax credit for a given project but notboth. However, for taxable years beginning on or after January 1, 1995 and ending on or before December 31, 1996, a taxpayer may be authorized to claim on a tax rerum for a given project both the investment tax credit and the job tax credit. provided that not less than 500 new full-time employee jobs are created in a tier 1 coUnty in the first taxable year and maintained through the end of the second taxable
year in which the taxpayer claims both credits. Also, for taxable years beginning on or after.
January L 1996 and ending on or prior to December 31, 1998, a taxpayer may be authorized to claim on a tax rerum for a given project both the investment tax credit and job tax credit, provide that not less than 250 new full-time employee jobs are created in a tier 1 county in the first taxable year and maintained through the end of the third taxable year in which the taxpayer claims both credits. Such taxpayers are not authorized to also claim the joint development amhontv credit.
~otice of Intent. Business enterprises which plan a significant expansion in their labor forces may file a Notice of Intent with respect to such project with the Commissioner of Community Affairs. The :\otice of Intent once received and accepted by the Commissioner of Community Affairs, will allow the business enterprises to claim job tax credits based on the tier status of the county or census tract at the time of acceptance. provided that the project takes place within the time-frame specified and all other program requirements are satisfied.
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See page A-8 for a No~ce of intent:

Program Coordinator. Business enterprises. contemplating an expansion of their labor.for~e

.

. . '. -'!fU':~i'I'>

in Georgia to qualify for the job tax credit should contact thl;' Georgia Job Tax PrOgr'!nr:~~.

Coord!nator, Georgia Deparnnent of Community Affairs, Suite 250, 60 Executive Park~.

South. N.E., Atlanta., Georgia 30329-2231 ~ This office can provide a copy of thel?~IP'8I1l.!; . . t'r ..,.
regulations, answers to questions concerning the program. and the current list of county and

census tract designations.

Form IT-CA. TIlls fonn must be attached to the income tax return of a taxpayer claiming a Georgia lob Tax Credit.. See page A-9 for Form IT-CA.

One-Time Election~ Taxpayers may make a one-time election to calculate new ~time1"

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. jobs on a calendar year rather than a taxable year basis. for all jobs created during.calendar.

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year 1994 and thereafter as compared against the preceding calendar year. This election may

be made by claiming job tax credits in connection with any 1995 state income tax return or

amended return that is filed after April 29. 1997. This election will not change the taxable

year of the taxpayer.

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GEORGIA'S JOB TAX CREDIT

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Decatur
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The Job Tax Credit is administered by the Georgia Depanment of Community Affairs

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1997

I.RIadolph 2.BadEe3.Ca1houD 4.Tmstlc:D
5.Cay
6.HIacack
7.fminael
8.Miu:hell 9.WIIiIm
54.Charhon
I 55. Sumter
56. Gilmer 57. Peach S8.UocolD S9. Ben Hill 6O.BcmeD 61. Cook 62.CaDdJer
.I ! 1.~07; MO~~ \. 108. Madison 109. UDiOD 110. CaIke' 111. W8Iker 111. Upson 113. Bibb \. 114. Jackson lIS. Spalding

The Job Tax Credit Program

CoUnty RanldDgs

1.9,962.'

~. I~ '~r-'.

.

Tu,' 1.

10. Telfair 11. Tuna
12.BaIa . 13.Trmll . 14.Ooo1y

19. JeDiiDs 2O.Emy 21. Taylor 22. TaJiafmo 23.Qgiuaaa

28.~
. 29.Meiri. . . . .
3O.E~,
31. Seminole 32.MdDIDsb

37.Wonb
3LBaCao.
-.:',1.-
39.Twigs
4O.BIIDdey
41. Toombs

46;.~,

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.0iIty;

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49;Ubeny
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5O~W.,.:

15. Talbot 16.JdlbUl
17.MKou

24.JobDsoD 25.Srewm 26. Cuecae

-.33.CdIp 34. &bat
35.DecaaIr

42. . . . . . .
43.MmOD
44.S=vea

:... 5~I!r1"-; .':"~7: <.r~:1.
52: Jeff Davis
.. -":~.'.':= ~: '.-
5!~PoIt

18. ArkiDsoD
63. Pierce

27. MootgoDay 36.WUcox

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72.1rwiD

81.Ecbols..

4S.Taaall
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90. FraukliD

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.:::"'!Jtkhim.lDd:

64. CluswsiluudlCll: 6S.Brooks

73.HarIbuo 74.FaDDiD

. 82. 0, Jlctb0rp:
83.1..aurem

91. WlDuwgwu. 92. Jasper

lOO:.MclrpD ., ",';
101. LIar

66. Miller'

7S.Coffee

84. Bulloch

93. Han

102.Muscogee

67. Clinch

7~.CAlquin

8S. G1asc:oc:k

94. Pulaski

103. Banow

68.Doogbeny

. T7.Webs="

86. Chaa.ooga

9S.Buas

1048anks

69. Long

78.McOuf6c

87.ral:

96.ToWDS

lOS. Lowndes

70. Schley
..
71. Wre

79, Ci3wicId SO. Tift

S8.Thomas 89. Wilkes

91. Stephens 98. Troup

106. BJeck1ey

116. Rabun 117.U:e 118. W'tlkinson 119. BaIdwia ... 120. Cbathiuq 121.Carroll 122. PickeDS 1:!3. Pike 124. Murray

Tier 3

125. Fulton

134. Hams

126. Lumpkin

'135. Dawson

121. Gcxdm

136. Walton

128. BIIaJw

137. PutDaID

129. Aoyd.

138. Habersbam

130. Bryan

139. Jones

'l31. NewaJD

140. Glynn

132. Effingham

141. Paulding

133. Catoosa

142. Clayton

143. Coweta 144. White 145. Houston 146. WbidieJd 147. DeK.alb 148.Camdeo 149. Hall ISO. Columbia 1S1. Dougl:1S

152. CberoktJe 153. Heary 154. 0c00I:c : 155. Forsyth 156. Rockdale 157. Cobb 158. Gwiooett 1~~}. Fayene

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Georgia's Less' Developed ;CensUs Tracts by County
Au~ust1994

I

Chattlam Ch8tham DougMtty FuttDn

FutIDn

Fulton

MulGa....

Bibb

(con't)

(con't)

(con't)

(con't)

(con't)

(con't)

(con't)

Tract 103

Tract 105.02 Tract 6.01

Tad 12

Tract 29

Tract 61

Tract 86.01

T"~;"~' . :.

Tract 104

Tract 106.04 Clayton

Tract. '3

Tract 3'

Tracl62

Tact 86.02

Tl'Kt5

Tract 'OS
Tract 106

Tract " Tract 12

Tract 403.01 Tract 14.01 Tract 403.03 Tract 14.02'

Tract 32 Tract 33

Tract 63 Tf8Ct 64

TrKt 87.01 Tract 87.02

T. . 6'.
~,,-

Tract 107

Tract 13

OeKaib

Tract '5

Tract 35

Tract 6S

Tract 88

Tract 103

Tract 11 1

Tract 15

Tract 20S

Tract 2

Tract 36

Tract 66.01 Muscogee Tract 104

Tract 112 Tract 113 Tract,,4

Tract 17 Tract 18 Tract 19

Tract 206 Tract 207 Tract 208

Tad 3 Tract 8
Fulton

Tract 37 Tract 38 Tract 39

Tract 66.02 Tract 67 Tract 68.02

Tract 108 Tract 110 Tract 13

T"',1os.04, . T",,06 Tract 13

Tract "5

Tract 20

Tract 117.02 Tract 21

Tract 122

Tract 22

Tract 123

Tract 23

Tract 124

Tract 24

Tract 125

Tract 25

Tract 127

Tract 26

Tract 128 Trae: 130

::oct 27
-:acr 28

Tract 133.02 Tract 32

Tract 209

Tract 10.95 Tract 40

Tract 227

Tract 109

Tract 42.95

Tract 231.01 Tract 110

Tract 43

Tract 235.01 Tract 112.01 Tract 44

Tract 236

TraCI17

Tract 46.95

Tract 237

'ract 18

Tract 48

Tract 238.02 Tract 20

Tract 49.95

Dougherty Tract 21

Tract 52

Trae: ~

7rael22

Tracl53

Tract 103.01 Tract 23

Tract 55.01

Tract 69 Tract 70 Tract 71 Tract 72 Tract 73 Tract 74 Tract 76.01 Tract 78.04 Tracl8 Tract 81.02

Tract 14 Tract 1S Tract 16 Tract '8 TracI20 Tracl22 Tract 24 Tract 25 Tracl 27 Tract 28

Tract 14 Tract 1S Tl'Kt2 T. . 3 Tract 4 Tract 6 Tract 7 Tract 8 Tract 9
Twiggs

Chatham Tract 33.01 Tract 103.02 Tract 24

TractSS.02 Tract 82.02 Tract 29.02 Tract 601.98

Tract 1

T~ac: 35.01

Tract 10

TraC136.01

Tract 101.01 TraCI44

Tract 105.01 TraCl45

TraCI106.01 TraCI25

'7'racl 106.02 'racl26

7raCI 107

TracI27

TaCI I I

Tract 28

Tract 56 Tract 57 Tract 58 Tract 60

TraC183.01 Tract 83.02 Tracl84 Tract 85

Tract :3 Tract 30 Tract 32 Tract 33

Tract 502

A-7

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Notice of Intent for
Georgia Jobs Tax Credit

1. . Name ofCompany:

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2.' Address ofCo~pany:=__~~-~--~~---~. - - - -_ _ ,'c.

3. Address jf Business Establishment Creating Jobs:

_

4. Name of County In which Jobs will be Created: -S. Number of New. -Full-time Jobs to be Created:

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6.

Year(s) in which Jobs will be Create~:.-------------_-

7. Type of Business Establishment (list SIC code):

_

Whereas the aforementioned company has abided by and will abide by all Job Tax Credit.

Program rules and regulations. application isnereby made to the Georgia Depanment of
Community Affairs for cenificalion that the above expansion will qualify for the Job TaX

Credit as new. full-time jobs in a tier

County (or in the

_ _ _ _ _ _ _ _ _ _---::=--_Less Developed Census Tract Area) whether or

not

County (the

Less Developed

Census. Tract Area) retalns its current tierlless developed census tract designation.

Date

Signature of Officer

.Print Officer' s Name

Title

Depanmenr Use Only
. Mailin~ Address: Job Ta.x Credit Pro!2:ram Coordinator Georgia Depanment of Community Affairs 60 Executive Park South. !,;'E Atlanta. Georgia 303:9

Phone Number Accepted:

By

A-B - - - - - - - - - . , . , - _..~-

IT-CA 1995

GEORGIA JOB TAx CREDIT

I. CERTIFICATION AND INSTRUCTIONS

The Georgia Job Tax Credit Program provides tax credits under Artide 2 of Chapter 7 of Title 48 of the Official Code of Georgia

Annotated for certain businesses that create and retain sufficient new full-time jobs. Businesses that may benefit from the tax

credit include those engaged in the manufacturing, warehousing and distribution, processing, research .nd devefopmeRt-or tourism

industry or the headquarters of any bUSiness engaged in such industry. (In some counties, all types of busin

,m.y benefit

from the tax credit through 1997).. ~ing on where (what county or census tract a,...).jobs. are-.cr

,..~of an

average of 10. 25,' or 50 new full-time JObs must beereated,and retained for one year before any credit 1IIaY"a*i1iCiIYact.. Job

creation thresholds must be met by individual county/census tract ar... The credit Is S2.5OO (for tier 1 countiea.nd",census

tract areas). S1,5OO (for tier 2 counties), or $500 (for tier 3 counties) .nnually for each new full-time jOb. The cndIt:caftM tllkerI
for five ~ears beginning with Yelr two and continuing through year six after the creation of the jobs. Each,....{ aIiCGUritieI in the

state are 'ranked and divided into thr. tiers of 53 counties .ch, and certain census tract areal .re d..ignatld:for:pat1IcIpatioIt.

Geo""./_TD, IN OROER TO COMPLETE THIS FORM copy of the program nigullJtionl must be olUlned from the

Credi,

Program Coordinator, Georgia Department of Community AffIIlrs. Suite 250. 60 Executive Park South, NE. AUantaf. GA 30329-

2231. Answers to questions concerning the program and the current list of county and census tract d8lignationl IMY also b<

obtained from the Job Tax Credit Program Coordinator. Please attach ll)is form to your Georgia Income Tax Retum.

A. CERTIFICATION FOR GEORGIA JOB TAX CREOIT PROGRAM

1. Nlmeal . . . . . . ~crd

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Street Addresa

cay

,

sara

ZIp Code

. . . . . NumbIrJ; ()

2- County(s)lcansua T...et Aru(s) i'l whictlltW new Iu-time jeD . . . ~ cr-.s

3. SInle( 8OdreS8(s) of ue<s) where new fuI.time jobs hlMl been e:t1lIICGd
.

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4. List the prodUCSS Of semcea (SIC Cl>(:.... ) prOYlded by the business at the site(s) listed atllMl

5. Fiscal year of the Du&inesa named abow

I 6. T~ year of the buslness. if different

7. if the county(s) listed abeNe wa ~nated poor 10 any yeer When ;otl6 were created. has the ~ filed I "Natice of Intent for GeargiI

Jobs Tax Credit?" I IY. I lNo

o.a. NotiOe WlI5 ~ by the Cor'rmsalllner of Community A"ln:

8. Is the ccmpany lISted ItlOVe entJtied to benefItS of the Job Tax Crldit progrwn by Innafer from lnotnet ccmpany? If so . . . , .

9. Were the quU1ying new fui.tIme lobS CI'Uled in In eligible . . . ae.: II aped census net ar.1
If so. lIttaeh infonnstion shOwing !tilt at leaS 3O'll> of the qualifying joGs are held by residents of a less de\;eloQecl census tnlCt . . . or a tier 1 coun Indicate below the methoc:loIogy used 10 Yef'lly eompllill'lCe V'IittI this requiremem. Please ccntac:t the Job Tax Credit Proglam Coordinata if furtt
informallOlllS neeoed. { J Department of COmmuNty Mairs metnodOlogy { J Other metnOdOlogy. Has the methodology been apprOYed by the Department of Community Affairs? Please explain:
(Note tllat separate Sec:tions II. III. and IV must be filed if new lobS Mile been created in more than one eligible county/census tract I r . or if the busln-
has Ilad more tllan one qualifying avenge lOCI'uae In emplOyment. )
I. the Undersigned. certify tNt the IbaYe listed Infonnstion IS tr\Ie Ina comlCl to the best of my knowledge and that the jobs cruIed are part of the busn operation that prOVIdeS the SIC produCtS or seMCeS listed lboYe Ind tNt the business has aDided by sll Job Tax Credit Program I\lIes Md reguation&.

Name of Applicant Date

A-9

Signature of Company Officer Title
See Reverse Side for Instn

B. INSTRUCnONS
Ve.r 1 is the tax y..r of new jobS increase and the Prior Vear is the preceding tax y..r. See Rule 110.9-1-.01 of tha Job Tax Cractit
. Program Regulations for the definition of these and other terms.

Une1
Une2 Une3 Une. Unel Une"" Une12 Une13
Uno l' Une15
Line 115
Une17

Total employees is the togl of full-time employees subjKt to Geclrgia withholding at the end of each Ipplicab..

monthly reporting period.

.

Number,of monthS \11 operUon in each tax year. ' . '

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Monthly ....ge of full-tlme eft11)loyees (line 1 dlYidactby line 2). Round to the nea~WhoI8 ~;..

Previous yM'" monthly ~ from line 3.

-, Average iricnae (d~) in fulJ.time employMl (nne 3 .... line .).:

.... : ;.~

EftW' the appropri8te average increau If maintained. see Rule 11008-1-.03 of the Job T.,~c.a'Program
Regulations for detailed instructions. AlIa Me the . .mpiellnduded In the Job Tax Credit Progrn,R..........

Number of jobs eligible for credit equa" the teal. of lines 6 11.

Multiply line 12 by $2.500. $1.500. or $500 depending on whether the business created jobsln a tier 1 county or

el6glble census tract ar. (12,500 credit), tier 2 county ($1500 cradll). or tier 3 county (S500 cadi) end add to this

figure the amount of any unused credit from prevtoul ~~ If the MW fuU.tlme jobs. wcn:;.~:.Ift- ... Iiglbk

cansus tract area, information must be attached IMwing th8t at least 30lMt of the qualifying joba.......... .". NIidentt

of a leu devetoped census tract lrea or I Tier 1 County. (Contect the Job Tax Credit progrwn COOrdlll" at tht

Department of Community Affairs on the kind of Information required.) Note that If jobs haw . . . a.tId WIItdn t

joint dlYelopment authority area. the amount of credit Is increased by $500. (The credit mlybe inCI..-d to $SOC

plus the highest credit of any member county for jobs created under the 'grandfather- clause- of the 199!

see amendments to the lew.

the Job Tax Credit RegUlations for further details.) Also note that If jobs on Une l'

were created in different years. credit Imounts per job mly wry depending on the credit. amounts appIicabie in th

see yeers the jobs were created.

the Job Tax Credit RegUlations for further details.

Ent~r the amount of tax liability for this tax year before any Job Tax Credit:

Enter 50"" of line 14.

Enter the lesser of line 15 or line 13. (Amount of Job Tax Credit for this year.)

Enter the amount of unused tax credit that may be carrillO forward. (Une 16 minus line 13 unleslsome of the unUSI
credit has expired. )

NOTE 1: NOTE 2:

see Unu$~ tax credits may be carried forward for 10 years from the close of the tax year in which the qualified jobs we

established. .Use the FIFO method to determine which tax credits expire at what time.

Job Tax Cre-

Regulations for further details.

The tax credit is calculated on the basis of the number of jobs created by county or census tract a..... Before e
credit can be received. a business must create at least an average of 10 (tier 1 county or less developed census tr:
area), 25 (tier 2 county), or 50 (tier 3 county) new full-time jobS in an eligible county or census tract lrea. 7
creation of 10, 25, or 50 jobs in two or more cOunties or census tract areas does not meet job threshold requiremer,

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IT-eA 1995

GEORGIA JOB TAX CREDIT

II. NUMBER OF FULL-TIME EMPLOVEES SUBJECT TO WITHHOLDING

County

FYE FYE
19_ 19-

FYE 19_

MonthlYear
1 2 3

Prior Year

Year 1

-
..

Yeer
2

FYE 19_
Year 3

F.YE 1~_'_
Year 4

FYE
1'_
Vear
5

FYE
11_
V r I

FYE
11_
Year 1

fYE 11_
Y r I

FYE
1'_
Y r 1

FYE
11_
Y r 10

Page 3
FYE 1'_
Year 11

4

5 -
6

7

8

~
I9
I-'
I-' 10

.- ._-

I

f:

----- ---
11

/'.

--
12

111_ COMPUTATION OF AVERAGE INCREASE IN FULL-TIME EMPLOVEES line 1: Total Employees

line 2: Divided by: Number of Months in

Operation

-

line 3: Monthly Average of Full-Time

Employees

Line 4: Less: Previous Year Average

Line 5: Average Increase (Decrease) in Full-Time Employees

:~t:

-.:..~:

IT-cA 1995

.;ti;f:~, ~ ;,~~~)1~:~~~;~~~!; .,

,.' ::::.:

't:o GEORGIA JOB TAX CREDIT

Page 4

IV. COMPUTA11O..:.N:::;' OF EMP, L. OY.EU EUGlBU! F'. OR CREOn'

:;7'

.'

V_i;: Va,
2~ .3

Va,
4

Vu, I

V.a, a

Va, 7

V.a, a

Vu,

Year 10

Year 11

Linea: V_ 1 Increl.e

.",'

I

Line 7: Ve'r 2 Increase linea: Year 3 Increase

- o.
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I. line.: Vear .. Incre.se

Line 10: Ve.r 5 Increase
.-
line 11: Year 6 Increase

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V. COMPUTATION OF JOB TAX CREDIT

,l

line 12: Numb.r ofNew Jobs Credit

lIneU: Availabl. Credit (lin. 12 x $2.500, Sl.500,
or $500 Plus Previous Unused Credit). Add $500 Bonus If Appropriate.

line 14: ralC liability (Be'or. Job TalC Credit)

lIn.1S: Maximum Possible Credit (50% of lin. 14)

Line 18: Enter lesser of line 15 or 13

Line 17: Unused New Job Tax Credit
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.-

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.-
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N
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Investment Tax Credit
The Georgia Business Expansion Suppon Act of 1994, as amended. provides an investIrierit~~, .
for cenain taxpayers that invest in new or expanded facilities within the state. This program proVideS .
.....,
tax credits that may be used to offset corporate or individual income taxes.
The credit is available for taxpayers that have operated for the immediately preceding three years an existing manufacturing or telecommunications facility or manufacturing or telecommunications
support facility in this state. The .amount of c~edit va.cies according to the county where an eiPiDsion
project is located.
For purposes of the investment credit. counties in the state are ranked into three different tiers ofless developed counties in the same manner as they are for the job tax credit. Tier I inCludeS'tfi~Jeastt'
developed counties with tier 2 and tier 3 including success.i.vely more developed counties~
The investment credit may be taken beginning with the year following the tax year in which the qualified investment propeny having an aggregate cost in excess of $50,000.00 is purchased or acquired by the taxpayer
Qualified Investment Property. This term means all real and personal propeny purchased or acquired by a taxpayer for use in the construction of an additional manufacturing or telecommunications facility to be located in this state or the expansion of an existing manufacturing or telecommunications facility located in this state. including, but not limited to. amounts expanded on land acquisition, improvements, buildings, building improvements. and machinery and equipment to be used in the manufacturing or telecommunications facility.
Basic Rate of Credit. The basic rate of credit varies according to whether the manufacturing or telecommunications facility for which the qualified investment propeny is purchased or acquired is
B-1
- - - - - - .... . -_._.~

- - -- -- ~-

located in a tier 1,2, or 3 county For tier I counties, the amount of credit is equal to 5 percent of the cost of all qualified investment property purchased or acquired by the taxpayer for that facility in that taxable year. For tier 2 counties, the basic rate of credit is equal to 3 percent. For tier 3 counties~ the basic rate of credit is equal to I percent.

Higher Rate of Credit. In the event that th~ qualified investment property purchased or acquiled.by

a

taXpayer

consis.ts

of recycling machinery .

or

equipment.

a

recycling

manufacturing

facility,

pollution

control

or

prevention '.

ma.c~hinery

and

equipment. .

a

pollution

control

or

prevention

facility,

or

is

used

in the conversio~ from defense to domestic productlort, 'then the qualified investment property will

be subject to a higher rate of credit. The amount Of"ihe higher rate of credit varies according to

whether the facility for which the qualified investment property is purchased or acquired is located

in a tier I, tier 2, .or tier 3 county For tier 1 counties, the amount of credit is equal to 8 percent of

the cost of such higher rate propeny For tier 2 counties, the' credit is equal to 5 percent of the cost

of such higher rate propeny Fo~ tier 3 ~ounti~s, the credit is equal to 3 percent of the co~fsuch:'"

-

-_

I



\



higher rate property.

Establishing, Eligibilit~y, The t:lxpayer must have operated an existing manufacturing or telecommunications faciiity or manufacturing or teiecommunications support facility in this state for three years and must have filed any reqUired state tax. returns. The taxpayer must purchase or acquire qualified investment propeny pursuant to an approved project plan. form IT-:\..PP. The cost of property purchased pursuant to the project plan must exceed a minimum threshold amount of 550,000.00 (1994 retlected ~ differe,nt thresh.old. system). The duration of a project may not exceed three years unless approved in writing.
Limit on Credit Taken. The investment tax credit taken in any o~e taxable year may not exceed SO percent of the taxpayer's Georgia income tax liability that is 'attributable to income derived from operations in this state for that taxable year.

Credit Carryforward. An investment tax credit that is claimed but hot used in a taxable year may be carried forward for five years from the close of the taxable year in which the qualified investment

B-2

property was acquired. provided that such qualified investment property remains in service.
Pass-Through of Credit. Business enterprises operating as pass-through entities may pass through
,:",,,~.~t. .'
available investment tax credits. "S" corporations will apply the credit to corporate income taX : liability at the entity level, if one exists, and then apponion any remaining credit to shareholders' based 'on percentage of ownership. Partnerships will apponion the credit to partners in the-same.. manner as partnership income. Limited liability companies will apponion the credit to shareholders based on percentage of ownership.
Coordination With Job Tax Credit. Taxpayers-generally may not claim or carryforward an investment tax credit for a given project if a job tax credit is claimed or carried forward for the same proJect. Taxpayers may choose to take either the investment tax credit or the job tax credit for a given project. but not both. .However, for taxable years beginning on or after 1anuary 1, 1995 and ending on or before December 31. 1996. a taxpayer may be authorized to claim on a tax retutnfor" a given project both the investment tax credit and job tax cr~it, provided that not less than SOO..new full-time employee jobs are created In a tier 1 county in the first taxable year and maintained through the end of the second taxable year in which the taxpayer claims both credits. Also, for ta.:xable years beginning on or after January I. 1996 and ending on or prior to December 31, 1998, J. taxpayer may be authorized to cla;m on a tax return for a given project both the investment tax credit and job tax credit. provided that not less than 250 new full-time employee jobs are created in a tier I county in the taxable vear and maintained through the end of the third taxable year in which the taxpayer claims both credits. Such taxpayers are not authorized to also claim the joint development authority credit.
Step One. Program Initiation. Business enterprises that are interested in the Investment Tax Credit program should contact the Conferee's Office of the Income Tax Division, at (404) 656-4171 for further information.
Form IT-APP and Form IT-Ie. These forms must be attached to the income tax return of a taxpayer claiming an investment tax credit.
B-3

Form ITAPP (Rev. 4/96)

APPLICATION FOR APPROVAL OF PROJECT PLAN
MANUFACTURER'S INVeSTMENT TAX CREDIT
Under section. 48-7-40.2, 40.3. and ~_4 of the Gegia Public Rlivenue Code Thi. application mu.t be filed with the G-Via Depanment of Revenue Income To Dhri.lon, P. :). Box 740317 - AII8n1a, Georgia 30374-0317

A. Name

IN THe SPACES BELOW; PLEASE,PROVIDE INFORMAnON ABOUTTHE IUNUNCT\IRlNG FAClU1Y FOR WHICH TAXPAYER PUNS 10 ClAIM THE INVESTIIENT TAX CREDIT,

AdClNU.

-.

Cily

:
s..

CounlY
0&18 ot OIQ&ftlDllOl\
0' IrlOOfDO_

County Tie' (1. 2. or 31
~Yearo,
Fcal Year Ftler

, TIlL 10 No. "','
Type of EllIIly

.........0 .:.;t,~~.
. .' . , .-, ...

" ' - NlI.. Zio Cocle

. ';"~:':'1rcl
'.',;":t~
::c - ;;"-,J

V_I) in WIIlCIl T..-.. IntenllI to CI8Jfn CnIcld

~

.. ,~.:.

V_EnCl

B.

IN THE SPACES BELOW. PLEASE PROVIDE INFOAMAnON AIIOUT TAXPAYER'S XJST1NG

laID No.

. ~ -:

MANUFACTURING PACIU1Y (OR RELATED MANUFACTURING SUPPORT FACIUTY) WHICH HAS

OPERAn:D IN GEORGIA FOR T1'1E PRECEDING THREE (3) YEARS.

Name

Data of (,orvan-n
or IncorooratlOn

AlllIflIIlI

" ' - No.

Cily

SlaIlI

C.

IN THE SPACES BELOW. PLEASE PROVIDE INFORMATION ABOUT TAXPAYER'S PROJECT.

,. Data orol8Cl was comrnenceo.

2. 08le IlrDl8Cl . . comlll8l1lCl. (It 0f0IlICI IS not OOftIllI8Iea. o~ me _&Il1l1 _ 01 comlll8bOtl.l

3 Has Taxoayer ClUft80 enner 0"18 'CD tax cnlCM 0' !T"e opttonal Investment taJt Cfecn for trU$ Oro1eC1')

4 Is TaxDSV8r constnJCbng a new manutaetunno lacltty") S. IS T_ _ lIJlllIII'Oll9 ." exlSUflQ menut.aunnQ IlICIIIlV?

D.

PLEASE ATTACH A DETAILED NARRATIVE DESCRIBING TAXPAYER'S PROJECT PLAN.

ZIp Cocle

: ...~ .'

- -. ~

~

E.

IN THE SPACES BELOW. PLEASE PROVIDE INFORMATION ABOUT PROPERTY PURCHASED OR ACQUIRED PURSUANT TO THE PROJECT PLAI

'. Does me QU8ll!IeCI _ e n t orooenv ll\lrcn_ Or lICIMf'Ild mcIUM ~ ~ _ '" ma CO........IOII lrom a e t _ 10 domllSlX: o_~

2. Does me aualIbecl _ e n t Ilrooe"V ll\lrcnaseo 0' aalUIf'Ild ~ IlOIlU1lOfl conIrol or 0 - m_ry or _ _ or a llCllIU1IOfI conIrol Of 0..-00" IlICIIll'(? NOn:: II yes. P l _ lInaa'I cel'llhcallon tll)m me DeIlMlMfl1 01 NaluraJ Resources (Form Sf-MS) lI\8l all IlO"UllOn comll)' 0' ~ mllcrnnerv or eauroment mat IS a DaSIS tor tne creort " necessary ana aoeauate tor "'8 OUf1)Q$8S In'ended.

3. Does lIle oualIl18Cl _ a n t 1lfOIllI"V IlUrcnaseo Or .clIUIt8Cl _ _ /KYClIl'O . . . - . v or f8CVl'JftO l8alIlV? II yes. 11I_ anacn a lIS1 of _
recoverallOe mll1en&lS are Delna recvalKl. ana 10 _ elltem m"" a... comoonems 01 manutaeturea oroOUClS.

4 II me OUald"'" mvesnnem 01'Otl8f1V IS a re<:VO'"O laotlIV. enta, me reno of 0lt1ce soace 10 ltl1al 180111V .Dace.

F.

pI F4SE ATTACH A S~H~DUL~ LISTING ALL aUALIFlED

PROPERTY P

OR ACOUIR"'D

Tn TNF R_ ,--

I. INl ~ . I I ' - " or OlIllIr IIflllCIIl8l otllCllf 01 me 1aXDlIVef lor _

I!lIS ~ IS _ . - . . ~ me _

of IllIfJIry lIlat lIlIS ~ ItnduIIlng 11ft -1I&IfYl"9

ana Ntamenu) nas oeen a".n"nea flo( ma ana IS. 10 m. lleSI 01 mv knC>WIeOQa ana Pel..... U\HI. corrac:t ano com_ _. . . . - In oo lann. 1 l U - to 1IW '"-9a PuIlIc R_

ancI lila regutallOftS _

~r. I u - . n a Inal h. IS an .-lC8lJOn lor . _ llDOroval ot a orol8Q llI&n IUlllllCl 10 a lilla' _

auCll1 conllllClllll IlY me oac-nmem.

s,C)I'\Alure 01 Pres_gent or Qtner PnnoOAl Ofhcer

(Iyllllll """".,

\-~

FOR

OEPARTUENT USE ONLY
IDale Aocftlvea:

8-4

GENERAL INSTRUcnONS

A.

Manutacluring Facility: The invesllTlent tax credit may De daimed by TaxDayer only for ttle constnJetlon or expansion ot a manA_nq facility.

"ManulaclUring taeiIity" is detinea In Regs. 560-7-8-.37(1 )(C). Provide the requested informaUon tor me manutactunng tac:ility tar wtllCh T8XI)8yttr

IS Claiming ttle credit.

County: The basic rate of credit varies aecording 1D whetner ttle manufacturing taeility tor whi eh the Qualified investment property was purchasec
or acquired is Ioeat8CI in a ~ that is clesigna1Bd as a lier 1, tier 2, or tier 3 less deVe~ -area. A listing 01 ttle countieS and tne respectlV,
tiers is contained in a booklet en1itIed 'nforma1ion on Income Tax CreditS for Georgia Businesses: available through the Revenue Deparlrnent.
List ttle county in which the manufacturing facility IS located and the lIer ot the county.

Year Claimed: Taxpayer may begin to elalmthecreclit for Qualtlied 1nvesIment,.~;purcha8ed or8CQUiredl~'.""'~'pfan il
thit year. imrnedia18lV following !he first taxable year in wtIich 1M minimum thl'8llha6da mount'ts purct\aSad or aCQulred'~""OR 'ClaIm th
entire credit in the year follOWIng !he year in Which the pfOl8Ct is completed. List the year(s) in which Taxpayer inl8nds 10 c:Iajm the credit.

B

Eligibility: To be eligitlle 1D daim the eredIt. T~r must have operated an existing manufadurtng facility (or a rela1llCHMnufllclurlngsuppo,

taciIity) in Georgia tar the immedialBly preceding three (3) years AND must have filed all required sta18 tax returns. "MInuIIlcturln1UPPCli't. tlIciIit\-

is defined In Regs: Sf30.7-8-.37(1)(d). Provide 1M reQUelIted informa1iorl'tar the faciIltVon whichT~yer bases itS eIigIIlIIty>_~ . . .cndIt

.:). i

C

Project: Taxpayer must purcnase or acqUire Qualified investment properly pursuant 1D a project plan. A "projed" Is a pIannedundertakir

involving tne eapilaIized purchase or acQuisi1ion of Qualified investment property for the cons1Netion ot an additional manutac:tunng fBcIIIty or tt,
expansion of an existing manufacturing tacility. A Prolect which is a planned expansion of an existing manufacturing taeiIity mull result in ~ elQ)anSion of Taxpayer's asset base and be reasonabfV AHated or neceasary 1D Taxpayer's manutaeturing process. "Elq)ansian" Is dlIIned in ~

560-7-8-.37(1 )(b).

.

Project Commencement Commencement of a projeCl means the dIIL.\h8t funds W8f8 first used 10 purchase or aoqun.propeny punJUIIftt 10 a project plan. Only QualiIecl irMlllllment property wt*=h is purdIIIed or acquired by Taxpayer atw
is met may be used 10 COfftl'UIe the tax c:redil Qualified Investment property purc:hued or acQUired by T8XPIlYW In
establishing eligibility may not be dairned tor those years by filing an arn,ended tax retum. .

lrMtstme y~ ~ prtor

0' Project Completion: Taxpayer must submit an lWPlieallon requesting aps:roval of ttle project plan within ttlirty (30) days of the ~tion of .
projec:l In 1he event TaxQIlyer is unable 1D SUbmit an 8DOIIC8uon tar approval pfOl8d plan within ttlirty (30) days of the c:ompIe1ion of a PI'OlE

Taxpayer may petition the Commissioner tar express wriUen lWProvaI 1D tile an appIlc8tion after the thirty (30) day penod has passed. 'The dura,

C?f a project ahaIl r:',Ot. e~ three (3) years unless elq)ressly approved_in writing by the ~~ner..



,.~:'~. . ~

J ~.c1

Claiming Credit Before P!Oject Compjet8Cl: If Tup ayer elects to daim the credit betare the completion of the project. bUt atiBr. 1M' purchase

acquisIIiOn of Qualified Investment property in excess of the minimum threshold ~t. Taxpayer may submit an applicdontarapproval of

pra;ect plan along with the IBX return on which the cnIdit will be claimed. This. preliminary appliCation must be amencIed._ _ 1hIrty (30) d

of the complelion of the project.

.. .

.

Coordination ot Credits: Except as auttlorized under O.C.G.A. Section 487-40.2ld)(2), whien authorizes cenain taxpayera in tier 1 c:ountie

claim bOth the joO IBX credit and the investment tax credit tar a given project, Taxpayers who Claim the Investment tax credit tar a given pre iriany taxable year are not eligible for ltIe lob or optional investment tax' credit for the same project in any subsequent year.

..

o

Taxpaver's appIieallon for ~rovel of Pl'OlectD!an must I~dude a detailed narrative which describes ttle proJect and how the QUalified investr

property pun::tlased or aCOUIl'eO pursuant to 1M protect plan is relate<l to Taxpeyersmanufactunng operation. Regs. 560-7-8-.37(3)(b)(1).

any time Taxpayer amends or modifies a prolecl plan Ulat has received Ule Commissioners approval, Taxpayer must submit a supplem,

narratIVe detailing the amendmenla Qr mOdllic:aUons to me approved prolect plan wittiin thirty (30) days of the amendment or modificauon.

E

The term 'Qualified investment prooenv" (or alP) means atl real and personal property purchased Of aCQuired by a taxpayer tor use ir

constNCllOn of an additional.manutae:tunng lacillty to De located in Georgia or Ine expanSIon ot an eXIS1lng manutadUting tac:ility locate

Georgia, Indue:tmg, but not limll8d to. amounlS expencl8d on land acQuISition. improvernenlS, buildings. building improvements. and machinery

equipment 1D be useci in the manutae:tunng faeiIity, which is reasonably relateel or necessary to Taxpayers manufacturing process: In the f

tnat the alP purcnasea or 8CQUlred by TllJq)llyer eonsasts of f8CVding machinery or equipment. a recyCling manutacturing taciIlty. pollution Ct

or prevention machinery and equipment. a pollution control or prevention fadlity, or is used in the corrvel'Slon from defense 1D dames1ic P roCIu

then ttle alP will be subiect to a. higher rate of credit which varies aecording to whether the property is purchased or 8CQUiIed tar a facility 10

in a county designated as a tier 1. tier 2. or tier 3 less developed area. The CommiSSioner reserves ttle right 10 review eaen purcha:

types acquisition of property tor which Taxpayer intends to daim a credit. Please indicate in the spaces provided whettler any of the aforemenll of alP eligible for the hlgner rate of erec1it have been purchased or aCQuired pursuant to the project plan.

,

I

Taxpayers who purehSS8 or aCQuire pollution control orprevenuoo machinery or equipment, or a poIIuuon control or prevention fadlity, must .

.' a certification from the Department of Natural Resoun::es (Form STMa) that all .pollution control or prevenllon machinery or eQwpment tha'

baais for a etec1it is neceasary and adequate for the purposes intended. Regs. 560-7-8-.37(B)(d). .

. If office space used 1D house support S1Ilff in a bUilding that is part of a recvcting manufaClUring fadlity exceeds 10 percent of 1M building" space, then the building will not be considered a component of the recyding manutactunng facility. The bUilding and any improvements . building will be subject to the basiC rate of credit for alP. Only recyding machinery or equipment loeated 10 the building will be subject
higher rate of credit for alP. Regs. 56o-7-8-.37(2)(c).

F

TaxQIlyer must atIBch a SchedUle of aualified Investment Prooerty containing ttle tollowing tnfOITri8Don: (1) type of property, (2) Quantity of pn:

(3) date of purehSS8 or aCQutSl1lon: (4) baSIs in property, II different from ns c:apnalLZed cost (5) ttllil talf martcet valUe of all leasea propert';

may be treated as alP; ana (6) eapltahzea ~st 01 property.

UPQn approval by the CommiSsioner. a signed copy of Form IT-APP will be returned to you. Please attach c of the approved Forms IT-APP and IT-IC to your Georgia Income tax return when claiming the investment tax c

B- 5

IT-IC
REV. (4/96)

Page 1

STATE OF GEORGIA

MANUFACTURER'S. INVESTMENT'TAX CREDIT

_,I ot, .--:_t;'~
. ..,it,

Sections 48-7-W.2. 40.3. and 40.4 of the Georgia Public Revenue Code establish an income tax credit for qualificcl.
_"iDs invesancnt propc:ny purchased or acquired on or afterJ8IlU8rY 1. 1994. Taxpayers must have operated an.
mailUfaclUring facility or related manufacmring support facility in this stare for three years and filed all requiIecl@IIWiL The amount ofthe credit varies baed upon the county in which the invcsImcnt is made. For the purpose oftbia c:zedil;;
the State is divided imo three tiers.

The credit is 5% (for tier 1), 3% (for tier 2), and 1% (for tier 3) of the cost of all qualified investmelu propcny purchased or acquired. Hlgber rates. In the event that the qualified investment property consists of recycling machiDc:ly, a recycling manllfacnJring facility, pollution coDuol or prevemion machinery or equipment, a pollution comro1or prewnnon facility, or is used in the conversion from dcf~ domestic production. a higher rate ofcredit applies. That rate would be 8% (for tier 1),5% (for ti~ 2). and 3% (for tier 3).

~axl. D. NumI:Ier

NAME

Pboae No.

SCreet Address
Cia. STI Number
-,

City

Stare

CouDry Where iJIvesaDcol Ocaus
".-"

Zip Code

- .: :.J

...-.-

TIcr

1. Dates qualified invesonent propeny pmchased or acquired Beginninl>g

En.diD!>,g

_

2. Ifyou qU3lify for the higher rates above. please indicate why

_

3. Total cost of all qualified investment property purchased or ~uired

_

(for period descnberi in I. above) .

a. Enter cost of all qualified investment property(related to regular investment credit)

_

b. Enter cost of all quaiified investment property eligible for higher rates,

_

CALCULAnON

4. Multiply line 3a. by 5%. 3% or 1% based upon the tier indicated above

.4

_

5. Ifyou qualify for the higher rates above. multiply line 3b. by 8%.. 5% or 3% based upon tier indicated above

................................................................ 5

_

6. Available Credit fentcr total oflines 4 and 5)

'" . 6,

_

7. Tax Liability (Before application of any credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 7

_

8. Maximum Possible Credit (50% of line 7) . . . . . . . . . . . . . . . . . . . . . . .. ... . .....8

_

9. Enter the lesser ofline 8 or 6 (enter as credit on return)

" ..9

_

10. Unused Manufacturer'S Investment Tax Credit (line 6-line 9)

10

_

ThIs form must be attached to your return to claim tbe investment taX credit.

B-6

IT-IC REV. (4/96)

Page 2

NOTES: R=ycling MampfaC'Uring FlICility- If!:" '\pan sWfoffice space exceeds l00Al of total building space, 1iJIIMr,: .

rates will not apply to the facility (48-7-40.2(' ~.3(6) 8Dd40.4(6) O.C.G.A.) . Unused credit maybe caaied'1bilw.cIW{i: .

.for 5 years from the close ofthe taxable year : lch the qualified invesancnt property was acquired. provided_IUCIl,..

pxopcny reDiains in scrvicc(yem 2-6). For la, fears bcgiuaiDg on or after 1-1-94 a minimum iDvesaDCDtin.....of

51. 53,- ~ 55 million is required for tiers 1.2. aud 3 respec::tlvely. For laX years begiDDiDg on or after 1-1-95 .,_,

minimum inVCSDDCDI required for aU tiers is 550.000.

..

IDformaUoll Required by Revenue Codes 48-7-40.1. 40.3 and 40.4 and ReguiadoD 56o-7~.37

1. Describe the project(aaach narraIive)t-

_

2: Enter amount of qualified invesanent property acquired during taxable year

_

3. Enter amount of tax credit claimed for taXable year

_

4. Enter amoUDl of qualified investment property acquired in prior taxabi, . :IS:-

_

5. Enter any tax credit utilized in prior taxable years,

_

6. Enter amount of tax credit carried over from prior yearse-

_

7.<\mount of tax credit utilized in CUITent taxable year

_

8. Amount of tax credit to be carned over to subsequent tax years,

_

9. Enter basis in all qualified investment property acqUired during taxable year

_

10. Enter the fair market value of all leased propeny treateci as Qualified lnvesanent Property

_

11. Please list any recoverable materials being recycled. To whal extent are they components of manufactured producIs?

12. If you are claiming a credit for pollution control or prevention machinery or CC!uipment please attach a certification from the Deparanc:nt of Namrai Resources thal all equipment is necessary and adequate for the purposes inrcaded

,I

Signawrc of Company Officer

. Title

B-7
......... ---_._----

Optional Investment Tax Credit

. c".B~ttt~71~~~i:,, ..
HB 336 of 1995 provides an optional investment tax credit for certain taxpayers that invest in newY '.

or expanded facilities within the state on or after January 1, 1996. This program provides credits.~),::_.

_.

.

_ ..P::......f. I

may be used to offset corporate or individual income taxes.

The credit is available for taxpayers that have operated for the irrui:'lediately preceding three years an

existing manufacturing or telecommunications facility or manufacturing or telecommunications

support facility in this state The aggregate credit amount allowed varies according to the county

where an expansion project is located.

:' '~,~ ':". r' ",. .

For purposes of the optional investment tax credit counties in the state are ranked into three different tiers of less developed counties in the same manner as they are for the job tax credit and the investment tax credit. Tier 1 includes the least developed counties \vith tier 2 and tier 3 including successively more developed counties.

The optional investment tax credit may be taken beginning with the tax year following the year in which qualified investment property is tirst placed into service.

Qualified Investment property. This term has the same meaning for the optional investment tax credit as it does for the investment tax credit.

Aggregate Credit Amount .-\llowed. The aggregate credit amount allowed varies according to C-l

\\ihether the manufacturing or telecommunications facility for, which the qualified investment property is purchased or acquired is located in a tier 1. 2. or 3 county. For tier 1 counties, the aggregate credit amount allowed will equal 10 percent of the cost of all qualified investment property pUrc~~~~!':;~ acquired by the taxpayer for that facility in that taxable year. For tier 2 counties, the aggregate credit amount allowed will equal 8 percent. For tier 3 counties, the aggregate credit amount alloweltwill:i: equal 6 percent.
Base Year and Base Year Average. The tenn "base year" means the taxable year in which qualified investment property is first placed into service by the taxpayer. The term "base year average" means the amount of state income tax owed by the taxpayer for the base year and each of the two immediately preceding taxable years (determined without any regard to any credits) added together and divided by three.
Calculation of Credit. The ta.xpaver may claim a credit for qualified investment property placed into service in anyone of the ten years tallowing the taxable year in which the qualified investment property is first placed into servlce. so iong as such property remains in service. Against state income tax liability for a taxable year. the taxpayer will apply the lesser of the following amounts:
Ninety percent of the excess of the taxpayer's state income tax liability for the applicable year (determined without regard to any credits) over the taxpayer's base year average tax liability; or The excess of the taxpayer's aggregate credit amount allowed for the applicable year over the sum of the credits already used in the years following the base year.
C-2

Establishing Eligibility. The taxpayer must have operated an existing manufacturing or telecommunications facility or manufacturing or telecommunications support facility in this state'for~:' three years and must have filed any required state tax returns. The taxpayer must purchase or acquire qualified investment propeny pursuant to an approved project plan. The credit may only be': taken with respect to qualified investment propeny having an aggregate cost in excess of $S million,
$10 million, or $20 million, depending on whether the manufacturing or telecommunications facility is located in a tier 1, tier 2. or tier 3 county, respectively. The duration ofa project may not exceed
three years unless approved in writing. The qualified investment property must be purchased or acquired by the taxpayer and fIrst be placed into service no sooner than January 1, 1996.
..
Pass-Through of Credit. Business enterprises operating as pass-through entities may pass-through available optional investment t<LX credits. "S" corporations will apply the credit to corporate income tax liability at the entity level. if one exists. and then apponion any remaining credit to shareholders based on their percentage share of ownership. Partnerships will apponion the credit to panners in the same manner as partnership Income. Limited liability companies \vill apponion the credit to shareholders based on their percentage of ownership.
Coordination With the Investment Tax Credit. The optional investment tax credit is offered in lieu of the regular investment tax credit. Taxpayers who choose to claim the optional investment tax credit for a given project make an irrevocable election and may not thereafter claim any credits under the regular investment tax credit for any year for the same project.
C-3

Coordination With the Job Tax Credit. A taxpayer may not claim the optional investment tax credit on a tax return for a given project if such taxpayer claims on such tax return the job tax credit; Step One, Project Initiation. Business enterprises that are interested in the Optional Investment Tax Credit program should contact the Director's Office of the Income Tax Division for further information. Fonn OIT-APP and OIT-Ie. These forms must be attached to the income tax return ofa taxpayer claiming an optional investment tax credit.
C-4

Form OITAPP . - (Rev. 3/14/96)

A.
Name

APPLICATION FOR APPROVAL OF PROJECT PLAN
OPTIONAL INVESTMENT TAX CREDIT
Un__r Section. "'7~0.7. 40.1. .... 40.1 at ,tie OMI1l- PuIIUc .....n_ Code TlIla appUcmlon _at . . fIlMI .IUI 'IW QeoI1lIa ~ at Re..n_
Incoma To Dlvlalon, P. O. Il4a 7403117 - Allema, Gaol1lla :S0374-03117

enow. IN TH~ SPAceS

PAOVID~ IftfORIIATlON AIIOUT ~''''"""AC'fURlNQ''ACILmfOR

WMlCH TAXPAY~R PLANS TO CLAIM TH~ OPTIONAL INV~ST_NTTAX CA~DIT.

j .. ". '.,ro.;.\;. , ":~,~~:-j:.:",

To 10 No.

" .,_. "

Type 01 EntllY

; """'~ .... to;

Cdy . COunty

COunty Tie, (1, Z. Of 3)
calenllar Ye.r or
Fiscal Yea' Filer

SI.le

II. Name

IN THE SPAC~S IIELOW. PLUIIE PROVIDE INFORMATION AIIOUT TAXPAVER'S EXISTING IllANUFACTURING fACIUTY (OR RELATeD MANUFACTURING SUPPORT FACILITY) WHICH HAS OPERATeD 1ft GEORGIA FOR THe PReCeDlftG THRee 131 YeARS.

e - Year In WhiCh OtP
18 Finll Placecllt1 StmIice

FieC8I Ve.rEnd

._.~-<,,,"'.:.
"'~";";'':d_,,,!~.

TulO No.

Oale 01 OrgalllZllllon 0' Inco,oarallon

elly

.. ~lI.le

C. ,
D.

IN THE SPACES IIELOW. PLUSE PROVIDe INFORIIATION AIIOUT TAXPAYER'S PROJECT' ,. Oale PfOI8CI was commenced. 2. Dale Prol8C1 was comolllled. III oroteCl IS nol ccmOleleo. oroVlde tne BSl,malea Qale 01 CCrrIl,e"on.1 3. HaS TSJCtJayer Claimed ertner Itle 100 12.11; c:eon or tM tn'J'8S'ment tax creolt ier U'us protect? 4. la Ta~' canstNCIlng a ~ manulaClunng laallly'? 5. Is Ta_ye, ellDand'nl) an e.ISl,ng manutaClunng lacully? PLeASE A"ACH A DetAILED NARRATIVe DeSCRllIlNG TAXPAYER'S PROJECT PLAN.

E.

IN THE SPAC~S "ELOW. PLUSE PROVIDE INFORIIATION A"OUT PROPERTY PURCHASED OR ACQUIRED AND PLACED IN S~RV~ PURSUANT TO

TAXPAYERS' PAOJ~CT PLAN.

1 When ..aalne oualdMld ,nve1l1mem orcoenv '''111 OlaC8Q,n lHlMCe In lne manutBaunno DI'OCII1IS 01 TBllDavera manUlaClunno laerti"'"

F

"""'f' . . .. Z. Haal,., auBblMld 1n111!11I1menl orooenv ",ma'neO ,n 9llNlC8 In lne manutSClunno "roClIlI1l 01 TallDavars manulaClunnQlaerhly?

1>,

T"....N .e.

, ,..TINn 411 "'''AI .......

P

"'

. Tn TN"

1', ....

I. Ire U IdtiIWji I8d. ~ or O\I1IIrl)l'nClllal oIIlCer 01 lne COrtlOrallon tor ..nlCfllnlll BDPbClIllon III made. deCla'" unde'lne Denan..a ot oellury lnal In'8 aoDIlC8lIlln (inclulling any ace

~and"""""nas--.eamtr18dDY me ana IS. 10 Ire DeSl 01 my IlnOWMldgB ana DeI..I, a lrue. COrntCi ana COlrCl..lllllPl1bCll1lOn, made ,n gaoOlallt\,~"IOtne Oec:

_ . . s ~ COC*I ana .,. ~ -.a~. I LrOenI.8IlO lnal lnlll 'S an 81lOircallOn tar lemallve agproval 01 a OI'OIlICI PlBn ...cl8ClIO a lale,

eUllll oonIlUI:Ied Dy Ire 0

Slgnalure 01 Pre.aenl 0' olne, Pnncrpal Olllce,
I
AooIOWdev L.-._ _ _ .

(Type Name)
'ON 0''''''''''" USO ON" I_oale_AoP_t'OWd
C-s

oate _

GENERAL INSTR~CTlONS

A.

Manutacturtng Facility. The investment tax crecIt may be claJmed by Taxpayer only for the construction or expansion of a manufactutiOc

~. Manufacturing facility" is de1ined In Revenue Rule seo-78.37(1)(c). Provide the requested in10rmation for the manufaeturin~

facility for which Taxpayer is daiming the credit.

Aggregate Credit Amount Allowed: The rate of credit varies according to whether the manufacturing facility in which the quaiifie

Investment property (QIP) was.first placed in, service is located in a ~ that is designated as a tier 1. tier 2, or tier 3 leis develope

area. A listing at the counties and the respective tiers is contained in a booklet entitled "Information on Income Tax Credits for GeorgI

BusineSSes,- avail8tlle ~the ~,Department. ust ~c:cunty'in.~the ,!","ufacturing facility is ~ of ttl

county. If Taxpayer fIrst ptaces quaiifled ,,,,vestment property Irl 8eMCell\ a tier 1, tier 2. or tier 3 county, then;T~._ntg8',

amount of credit allowed Will be 10 percent, 8 percent, or 6 pen:ent, respectively. Revenue Rule 560-7-8-.4O(1)(')i~'



~ ,J!..4_"".'_

,Timing: The tupsyer may.begin to take the credit in the year fcllowing the year in which qualified investment prcperty is fiiSt pI8ced
service. The tann "first pI8ces in seNice" means the first regular placement of quaiified investment property in the'~Proce,
at a nawfacturing facility. It does not mean merely physically placing regul8rly inactive or surplus property on the!~facil
siIe. The tann "base ye~ means the taxable year in which Qualified investment property is first placed In seNlce1lf:1tWtllXpayer. L
the first year in which Taxpayer Intends to claim the credit.

8

Sigibility: To be eligible to claim the credit. Taxpayer must have operated an existing'manufacturing facility (or a retated manufactun

support facility) in Georgia for the Immediately preceding three (3) years AND must have filed all required . . . tax retur:
~ring ~ end "nW1Ld8cturing support facility" 818 defined in Revenue Rule 560-7-8-.37(1 )(c) and (d). PwciMdathe:reques-,

infonnation for the facility on which Taxpayer bases its eligibiJity.w.,the credit.

.'~~;~";;::: ..:

C.

~ Taxpayer must pun::hase or ~re ~ investment property pursuant to a project ptan. A -project"' Is a . - undertal<

inVOlWlg the capitalized purchase or acquisition of qualified inwstment propef!Y for the construction of an addition8l mBnUtaeturtng fac

or the expansion at an eXISting manufactunng facility, A project which is a planned expansion at an existing manufacturing facility rr

result in an expansion 01 Taxpayers asset base and be reasonably related or necessary to Taxpayer's manufacturing pl"OCt

"Expansion~ is defined in Revenue Aule SSo-78-.37(1)(b).

Project Commencement: Commencement of a project means the date that funds were first used to purchal8f,9"~~.quaI:
investment property pursuant to a proJBCl plan. Only qualified investment property which is purchased or acquirechri::t.pjaced In sel t:1I Taxpayer Bfterttle eligibility requirement is met may be used to compute the tax credit. Qualified investment property purchase acquired t:1I Taxpayer in taxable years pnor to establishing eligibility may not be claimed for those years by filing an 8I'IIended tax re',

Project Completion: Taxpayer must sutrnit an application requesting approval of the project plan within thirty (30) days of the compl-

of the project. In the event Taxpayer IS, unable to submit an application for approval of project plan within thirty (30) days 0

CCllt'.pIe1Jon ot a project, Taxoayer may petition the CommissIoner for express written approval to file an application after the thirty

day period has passed. The duration of 'a prO)9et shall not exceed three (3) years unless expressly approved in writing b~,

Commlssloner.

.

.

Claiming Credit eetore Project Completed: !f Taxpayer elects to claim the credit before the completion of the project. but aftf

purcnase or acqUISition of' quatitied Investment property In excess of the mInimum threshold amount, Taxpayer may submit an applic

for BtlProvai of the prolSd plan aiong wrth the tax retum on which the credit wiU be claimed. This preliminary application must be ame

within thirty (30) 'days of the completion of the propect.

Coort;jination at Credits: This credrt is an optional investment tax credit in lieu of the regUlar investment tax credit allowed under O.C
SecIIons 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 en irrevocable el'
and may not thereafter claim either the JOb tax credit or the regular investment tax c;:redit for a given project Taxpayers whc preVIously claimed either the job or regUlar Investment tax credit for a given project in any taxable year are not eligible for the 01
investment tax cradit for the same proJ8ct In any SUbsequent year.

D.

Taxpayer's application for approval of proJ8ct plan must include a detailed narrative which desctibes the projed and how the qL

investment property purchased or acquired and placed in seMce pursuant to the project plan IS related to Taxpayer's manufal

operation. Revenue Rule seo-7-8-.40(3)(b)(1). If at any time Taxpayer amends or mOdifies a project plan that has receiv

Canmissioner's approval. Taxpayer must submit a supplemental narratiVe detailing the amendments or modifications to the ap,

projeCt plan within thirty (30) days of the ame~~ment or modification.

E

The term "Clualified investment propeny' means all property described in O.C.G.A. sections 487-40.2(a)(2~;-48-7-40.3(a)(:

48-7-40.4(a)(2) which is reasonably related or necessary to Taxpayer's manufacturing process. The Commisaioner r&88NeS ti

to reVIeW each PJrchase or acquisitIon of propeny for whIch Taxpayer intends to claim a credit. Please indicate in the spaces p

wnen the qualified investment propeny was first placed in seMce and whether the property remBlns in service.

F

Taxpayer must attach a Sc:hedule of Qualified'investment Property Containing the following information: (1) type of property, (2) (

of property; (3) date 01 purchase or acqUIsition and the date tirst placed in service: (4) basiS in property; (5) the fair market Vall

as leased property which may be treated qualified investment property; and (6) capitalized cost of property.

Import8I1t: An. this ~iClltionhas been reviewed and ~ed by the Commissioner, 8 signed copy will be returned Pleaae attach copies of the approved application Form OIT-APP and Form IT-IC to your Georgia income tax retur ct.mlng the optional Investment tax credit.
C-6

Employee Retraining Tax Credit

The Georgia Business Expansion Support Act of 1994 provided a tax creditfor employers'wl*PiOVi_or

sponsor an approved retraining program for employees. The credit is available for employers upon whom

an income tax is imposed by the "Income Taxes" Chapter ofthe Georgia Revenue Code. Th~may,be

used to offset corporate or individual income taxes.

l;;:..~:;1 ;~}:;.

Amount of Credit. The amount of the credit that is available under this employee retraining program is

4 ,.,. .:

equal to one-founh ofthe direct cost ofrettaining Pet: full-time employee. up to $500.00. for esdi' f.:;ilployee

.

..

who has successfully completed an approved retraining program. For taxable years beginning on'or after

January 1, 1996 the amount of the credit that is available under this employee Retraining Program is equal

to one-half of the direct cost of retraining per full-time employee. up to $500.00, for each employee who

has successfully completed an approved retraining program.

Limits on Credit Taken. The employee retraining tax credit cannot exceed 50% of the amount of the taxpayer's income tax liability for the taxable year. The credit cannot be carried forward. No credit is allowed ifthe employer requires that the employee reimburse or pay the employer for the cost ofretraining.

Approved Retraining. The retraining program should be approved in advance of implementation by the Georgia Department of Technical and Adult Education. The retraining program must enhance the functional skills of employees otherwise unable to function effectively on the job due to skill deficiencies. or who would otherwise be displaced because such skill deficiencies would inhibit their utilization of new technology. The employer must not require the employee to make any payment for the retraining, either directly or indirectly through use of forfeiture of leave time. vacation time. or other compensable time. See page D-4 for a program Application Form.
- Cost of Retraining. This term means the direct instructional costs of, the retraining program. including
instructor salaries. materials. supplies. textbooks. manuals. video tapes or other instructional media and equipment purchased for and utilized exclusively for employee retraining purposes. The cost of renting or otherwise securing space for retraining is excluded from cost of retraining.
D-1

Employee. This term means any worker who resides in the State of Georgia, who is employed for a

minimum of 25 hours per week, and who has been continuously employed by the employer for at least 16

consecutive weeks. The.term includes workers involved in direct labor and their imme~;ate supervisors.

,



J

.



i. . : '

~

.,

, Successful Completion. An employee has successfully completed an approved retraining progrP.:' 'hen
the employee has demonstrated, through formal assessments., the ability,to perform the job skil1s\1..;l,.;iu-.:h-the retraining program was designed to provide.

.'

.

Step One, Program Initiation. Business enterprises that are interested in the Employee RetraiDiDg Tax

, Credit program should contaet the VP, Economic .Development ProgramS at their local Technical Institute,

or the state office ofEconomic Development Programs. Depanment ofTechr.:,cal and Adult Education for

information and an application package.

Fonn IT-RC. This form (see page D-7 ), and a copy ofthe program Completion Form (see paget)lS)~ IIlWOt
be attached to the income tax return of a taxpayer claiming a Retraining Tax Credit.

D-2

Georgia Retraining Tax Credit
Program Approval Application
Georgia Department of Technical' and Adult Education

Training Program

_

1. Company Name:, Address:,
No. of years operating in Georgla: 2. Type of business and nature of ooeratlon:

_ Oivision: _ Phone:
COntact:
_ No. of employees in division tocatian:

_ _ _
_

3. Describe relevant tnanges In your wortlplaC81mantet and ~st the resulting skills defiCiencies including projected number of employeeS to be trainea:

4. Describe purpose ana oblectlves of retraining:

5. PrOVIde estlmateo retraining costs:

_

6. Are emOloyees unaOle to tunC\lon etfectlvely on me 100 as a result of the sloll defiCiencies identified in item 3?

_

Will me deficienCIes result In employee diSPlacement If skills are not enhanced? _ _~_

7. Name of training prOVloer:

_

Slgnarure or C.:;moany en/ef ::xecullve

Dale

Tille
ThIS IS to cenlfv tnat tne RetralnlnO Prooram tor the aoeve nameo company is In compliance with standaras established by tne Depanment of Technical ano Adult Educa\lon.

Slgnarure of Oeoanment 0; Tecnnlcal ana AaUlt Eaucallcn Ottlclal

Dale Aoprovea

Name of TecnnrCBI Insrrtule

D-3

Georgia Retraining Tax Credit Program Approval Application

~ Program Approval.Appl.ication Checklist

For training program approval, provide access to the following documentation:
o Name, address, and phone number o.f training provider

O Qualifications of provider .
o Training objectives

.0 Ttaining outline

.-
In....tructional materials
o Estimated total hours of instruction

.0
o

Training schedules

"

':,.

Training qualifications of instructors

,

~,

i.

o Training location(s)

- 0 Criteria for employee performance evaluation and a copy of the

evaluation form .

.. .

..

D-4

------.-----

Georgia Retraining Tax Credit
Program Completion Form

Georgia Department of Technical and Adult Education

Tax Year Ending""",;,:::"",

':~""'!lW_;

Training Program

_

Complete .this form and slibmit to the Vice President, Economic Development Programs at your local' Technicallnstitute. .

Company Information ..

, ; ' i"l;~

Company Name: Address: Telephone:

"""::c:ll:::""'"

_

_

_ Federal 1.0. Number.

_

Retraining Info

.,.~f,;I

I '.;~~\'

tion'

'



\~.

"'~.!

Describe- relevant changes in the workplace/market and resulting employee deficiencies. (Repeat item 3 of Program Approval Application.)

Describe purpose and objectives of retraining, (Repeat item 4 of Program Approval Application.)

Name of Retraining Provloer: Initial Retraining Program Approvai Date:

Certificatiqp' '.

"

,~,:

_

_ Retraining Tax Credit Amount

_

Signature of Company Chief Executive

Date

Title

SignaTUre of Deoarrmenr of

'

Tecnnrcal and Adult EducaTion Official

Date

Name of Tecntllcal insmute Attach to Depanment of Revenue ITRC (8/94) Retraining Tax Credit Form
D-5

Georgia Retraining Tax Credit

Program Completion Form

:.

Employee Irjf:P.'nl1atlon '~'.



; ~:r;1

~"

. ~.

}r

;-i'
r.,

.

-;'-
,~

Attach copies of company records or provide the ir.'crmation requested below on this form and attach .

to Depanment of Revenue ITRe (8194) Retraining .',~ Credit Form.

,'.";- .

Trainees who are required to make any payment at any time for the training either' directly or

indirectly through the forfeiture of leave time. vacation time. or other compensable time.:".....:

Trainees WhO wort< less than 25 hours per week and/or have been continuously employed by your

company for less than 16 consecutive weeks.

Trainees who are not GeorgIa residents.

_..

Employee Name

Social Security Evaluation Number

Course Completed

Total TNInlng'
Hou...

-
I
I
I

.,
I

I

I

I

I ..

..
I
!
I

.. . . . ". ~- ~ ..

'."., ;..

.. "

,

,

.. -
0-.6

!TRC (Revised '96) DEPARTMENT OF REVENUE INCOME TAX DMSION
STATE OF GEORGIA
RETRAINING TAX CREDIT
Tbis form may be used to compute credit by i~di\idu8lS~ C CorporatioDs BDd Scorp~~!r~.1~!;:~
Section 48-7-40.5 grants tax credits to employers who provide or sponsor an approved Retraining EducatiQD: Program. TI1e amount of the tax cn:c!it shall be equal to one-half ofthe direct costs of retraining pCldull;'ltii.~ employee up to $500.00 for each employee who bas successfully completed an appove(he~~~~.

r-A.~fEII=SS:-::NU~MB=ER::::----""'T"~NAME~~---------------"""--"'=Ta--:':Y"~-""7"'"-._.
Filcal Y., EDdiIII
B. GA. w/HOU> TAX ACCT. NO. NUMBER AND S'ffiEET

C. GAo STI NUMBER

cm OR TOWN AND STATE

COUNTY POSTAL ZIP CODE NO.

TELEPHONE NO.
( . ).;},:~~iP-l~~ ~+~,.:

------------------- 1. Total Training Costs ...............................

2. Divide the total training cost by 2

_

3. Multiply the number of employees trained_ _by $500 .....

4.Allowable credit is the lesser of line 2 or line 3

If filing on Georgia Form 500. claim credit on Line 17; on Form 600 use Line 3 of Schedule 3~ oJ Form 600S,
Line 3 of Schedule 4.
A copy of this form and the Program Completion Form must be attached to the Tax Return when filed.

D-7

ITRC (5W4) DEPARTMENT OF REVENUE INCOME TAA DIVISION

STATE OF GEORGIA
RETRAINING TAX CREDIT

This form may be used to compute credit by Individuals. C Corporations and S Corporations.

-.'

'.',

..... , : ,"'~\'.....~.: ' '..;

. Section 48-7-40.5 grants tax credits to employers who provide or sponsor an approved Retraining Edueauon'PlbCli8m;The

amount ofthe tax credit shall be equal to one-fourth ofthe direct costs of retraining per full-time empIOY88gp.tiSSOO:OO per

year for each employee who has successfully completed an approved retraining program.

I
I
, I!

A. FEll ss N\AtBER
B. GA. WIHOLD TAX ACCT. NO.

C. GA. ST1 NUMBER

I NNoE
NUMBER AND STREt i c:TY OR TOWN AND STATE

.
COUNTY

1.. Total Training Costs

..

2.

Divide the total training costs by 4

.
~ '"

.

.

~ .o

3. Multiply the number OT empioyees t~ined by $500

4. Allowable credit is the lesser of line 2 or tine 3

I

TAXftMJ

I

FISCAL YEAR!NDlNG

POSTAL ZIP CODE NO.

TELEJlHOIIE NO.

()

,.

...,."<1...........

.

.
:. .

If filing on Georgia Form 500. ciaim credit on Line 17: on Form 600 use Line 3 of Schedule 3: on Form 600S. Line 3 cd Schedule 4.
A cooy of this schedule and the Program Completion Form must be attached to the tax retur:n when filed.

D-8
,
.,
.._ - - - - - - - - - -

Employer Credit for Child Care
The Georgia Business Expansion Suppon Act of 1994 provided a tax credit for employers who'provide or sponsor child care for their employees. The amount of the credit which is aVaiiible-UDdeF.f' this program is equal to one-half of the cost of operation to the employer less any amountsipaidfor by employees during a taxable year, Employers considering this child care credit program should review the following Georgia Regulations:
560-7-8-.38 Credit To Employers For Cost of Providing or Sponsoring A Child Care Facility For Employees
(l) Definitions. (a) Child For the purposes of O.c.G,A. 48-7-40.6. a child is defined as a dependent of the
employee who is under the age of 13 when the care is provided and for whom the employee can claim an exemption.
(b) Child Care Facility. The term "child care facility" means any day care center, family day care home. or group day care home as defined under O,c.a.A. 49-5-3 which is licensed or commissioned as a "child welfare agency" by the Georgia Depanment of Human Resources pursuant to a.c.G.A. 49-5-12.
(c) Employer Provided. The term "employer provided" refers to a child care facility which is
E-I

operated on the premises of an employer by the employer. so long as the facility is located in Georgia.

(d) Employer Sponsored. Th~ term "employer.sponsored" refers to child care provided pursuant .to a contraen1al arrangement between the employer and a third pany who operates a child care facility .in Georgia It does not refer to child care provided direet!y to employees by a third party. where the employer does not directly pay the third party for child car~ but reimburses employees for costs.

(e) Cost of Operation. The term" cost of operation" means the reasonable. direct; operational costs incurred by an employer in ryroviding or sponsoring child care facilities for employees. Such costs include. but are not ... Jted to. salaries. supplies. space. food. transportation. educational and special activities. and payments made to a child care facility pursuant to a .contra,ctual .arrangement.

(2) Credit.

(a) Calculation of Credit. The amount of the credit granted to employers is equal to 50 percent

of the ~ost of operation of an employer provided or employer sponsored child care facility for that

.

'.

taxable year. minus any amount paid for by employees in any taxable year [i. e.. cost of operation)

x Y2) ,;, (amount paid by employees)].

(b) Limitation. The amount of the credit granted to any employer may not exceed 50 percent

of the employer's Georgia income tax liability for the taxable year as computed without regard

E-2

to these regulations.
",,:,;1/:'>';:,:::';:' .
(c) When the Credit May be Taken. The credit may be claimed in the same year in which the Co~ of operation is incurred. Any unused credit may be carried forward for five years from the close.io
the taxable year in which the cost of operation was incurred. (3) Certification. Employers must maintain in their files records for cenifying the cost of operation
to the Depanmem. These records include the names and social security numbers of employees who utilize the facility; their children's names. ages. and social security numbers (if age 1 or over)~ the name and federal identification number of the child care provider. and other such information as may be required by the Department
..
(4) Form IT-CCC. Empioyer Child Care Computation Form IT-CCC must be attached to the Georgia Income Tax Return fur the credit to be allowed.
E-3

IT-CCC. Rev. 6194

Georgia Income Tax Division
Employer Credit For Child care Center
Attach This Form To Your Return Tax Year:__

Part I

Expenses for establishing an employer provided facility 1. Mortgage or lease payment
2. Playground and classroom equipment 3. Kitchen appliances and cooking equipment 4. Real property and improvements 5. Other 6. Total Part1 Add Unes 1. 2, 3. 4, and 5

1.

_

2.
3.,_'_ _

4.,

_

5. _

6.,

,

Part II

Expenses for an employer sponsored facility 7. Payments to a licensed child care facility

7.,

_

Part III

Annual expenses of operating a child care facility
e. saJaries and wages
9. Supplies 10.- Utilities 11. Other 12. Total Pan1I1 Line 8. 9. 10. ano 11

e. _

,9=_"'

_

10.

_

? 11._ _-,

12.

_

Part IV Part V

Summary

13. Add lines 6. i, ana 12 14. Multloly line 13 by 50% 15. Enter the amount ;Jalo by employee 16. Subtract Line 15 from line 14 17. Enter carry over credit from prior year
1e. Add Line 16 ana 17

13.

_

14. _

15.

_

16.

_

17.

_

18.

_

19. Multloly Income Tax liability by 50%

19.

_

20. Enter the lesser of Line' 8 and 19

20.

_

The amount on line 20 is the maximum amount allowable for the current year. Enter the amount on linE

on the Income Tax Return other credit line.

carry over credit



21. Subtract Line 20 from Line 18 i1 less than zero enter none or zero. The amount on line 21 is your c

over credit ana may be earned over Tor five (5) years or until exhausted which ever occurs first.

21.

_

THIS FORM MUST BE ATTACHED TO THE INCOME TAX RETURN

E-4

. Passing the GED Tests: or

. Passing a Developmental Studies Course at an accredited public postsecondary

instution.

:,'f

Step One, Program Initiation. Business enterprises that are interested in the Basic Skills Education' Tax Credit Program should contact the Georgia Department of Technical and Adult Education for additional infonnation and a Procedures Guide for applying for, operating and certifying such programs.

Form IT-BE. This fonn (see page F-4) must be attached to the income tax return ofa taxpayer claiming- ~ Basic Skills Education Tax Credit.

F-3

fT-BE ("'93) DEPARTMENT OF REVENUE INCOME T~ DIVISION

STATE OF GEORGIA
BASIC SKillS EDUCATION TAX CREDIT
This form may be used to compute credit by Individuals and C and S CorporationL;
Section 48-7.-1 grants tax credits to employers who provide or sPOnsoun approved basic skills education program;,. Theamount oft< tax credit shall be equal to one-thlrd of the costs of education per:'d~me equivalent student, or S150.00 per full.tlmeequivalent Itudel
whichever is less, for each employee who has successfully completed an approved basic skills education ~..m:"
NOTE: Credit not to be claimed with regard to normal employee developmental job training.
176 Classroom hours per year equals a full-time equivalent student

-Jr-_two~---------------------- I-A._FEI_'_SS_MMIIER B. GA. WhiOlD TAX ACC"r. NO.

INl.NBER AND STREET

C. sn NUMBER

Iem OR TOWN AND STATE

COUNTY

POSTAL ZIP CODE NO.

TELEPHONE NO. ()

1. Total classroom hours for all employees per year ,..............................................

2. Number of students who successfully completed program

..

3. Divide line 1 by 176 to arrive at full-time equivalent students

..

4. Total training expenses

.

5. Divide line 4 by line 3 to arnve at cost per student

.

6. Divide line 5 by 3, for one-third cost

.

7. Enter the lessor of line 6 or 5150.00

.

8. Allowable Credit equals line 7 times line 2

.

If filing on Georgia Form 500, claim credit on line 17; on Form 600 use Line 3 of Schedule 3; on Form 600S. Une 3 of Schedule'
Employer must maintain records at the work place which certify student name, records, course work, and name ofthe approved basic: education provider and such other information as may be required by the department. C.C.GA 48-7~1(d)
For more information, please reter to the procedures guide for applying tor, operating and certifying programs for tax credit.

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Tax Credit for Increasing Research Activities (Applicable to taxable years beginning on or after 1-1-98)
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.. J.~x Credit for Rapidly Growing Small Business (Applicable to taxable years beginning on or after 1-1-98)
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