Credits - FAQ

Yes, if they are living in Georgia at the end of the year and they meet the other requirements, a full credit will be allowed.

No.

In order to qualify for the Georgia low-income housing credit, the qualified Georgia project must be eligible for the federal housing credit, as defined in Section 42 of the IRC of 1986.

For consistency with IRS Regulations, a partnership K-1(if claiming the credit as a flow through from a partnership), the associated Federal Form 8609 tax credit certificate and a schedule that includes each property for which a credit is claimed with a building-by-building allocation should be submitted with the tax return. See Form IT-HC.

Use GTC to access and submit the appropriate electronic form to request preapproval. Set up a GTC account if you do not already have one. 

Login to GTC.  You must be in your income tax account (go to the bottom of the screen and click on the account number); then select “manage my credits”; then select “request preapproval”; and then from the drop-down list select the applicable electronic form.

To access the electronic Form IT-WH the taxpayer must establish a GTC corporate or partnership income tax account.

If they already have an account, login to GTC and go in their income tax account (go to the bottom of the screen and click on the account number) and select “manage my credits”; and then select “claim withholding”.

For taxable years beginning on or after January 1, 2017 a taxpayer must file the electronic Form IT-WH Notice of Intent through the Georgia Tax Center within thirty (30) days after the due date of the Georgia income tax return (including extensions) or within thirty (30) days after the filing of a timely filed Georgia income tax return, whichever occurs first.

Please note that this timeframe is based on the due date of the original Georgia income tax return (not an amended Georgia income tax return). The election to use an income tax credit against withholding is an irrevocable election.

If the taxpayer is approved to use the credit against withholding, the taxpayer will receive a withholding approval letter from the Department, the withholding approval letter will state the specific amount that can be used against withholding and when and how the credit is used against withholding.

Please note that the taxpayer cannot begin to use the credit against withholding before they receive the withholding approval letter from the Department, and the Department of Revenue treats this amount as a credit against future withholding tax payments and will not refund any previous withholding payments.

Certain income tax credits must be claimed by the taxpayer within the one-year rule (for example, the jobs tax credit, retraining tax credit, and quality jobs tax credit at the time of the posting of this information).

The jobs tax credit, retraining tax credit, and the quality jobs tax credit must be claimed on an original or amended Georgia income tax return within one year of the earlier of the date the original return was filed or the date such return was due as prescribed in subsection (a) of Code Section 48-7-56, including any approved extensions. A taxpayer can amend to claim all other income tax credits (other than the jobs tax credit, retraining tax credit, and quality jobs tax credit) on a prior year’s return under the 3 year rule in O.C.G.A. § 48-2-35(c), which states: (c) (1) (A) A claim for refund of a tax or fee erroneously or illegally assessed and collected may be made by the taxpayer at any time within three years after: (i) The date of the payment of the tax or fee to the commissioner; or (ii) In the case of income taxes, the later of the date of the payment of the tax or fee to the commissioner or the due date for filing the applicable income tax return, including any extensions which have been granted.

The taxpayer decides the order in which they use their Georgia income tax credits, unless the income tax credit statute specifies an order. The only Georgia income tax credit that specifies an order is the research tax credit. The research tax credit statute and DOR regulation state that the research tax credit taken in any one taxable year shall not exceed 50% of the business enterprise's remaining Georgia net income tax liability after all other credits have been applied.

O.C.G.A. § 48-7-42 allows income tax credits to be assigned to an affiliated entity. Please note that assignments must be made on an original return (return filed before the due date including extensions), assignments cannot be made on an amended return filed after the due date including extensions. And income tax credit carry forward cannot be assigned.