Georgia S Corporation Income Tax Booklet

S Corporation Income Tax Booklet
S Corporation Income Tax General Instructions
IT 611S
Rev. 12.22.23
Brian P. Kemp
Governor

Frank M. O’Connell

Revenue Commissioner		

State of Georgia
Department of Revenue

2023
S Corporation Income Tax
General Instructions

File Form 600S and pay the tax electronically. Visit our website dor.georgia.gov for more information.

CREDIT CARD PAYMENTS

ELECTRONIC FILING

Accuracy. Security. Paperless. More Features.

Follow us on Facebook
and X

FROM THE COMMISSIONER
This booklet is designed to provide information and assist 	
S Corporations in filing their Georgia corporate tax returns.
You can electronically file your corporate return. I strongly
encourage you to take advantage of this feature. I also
recommend that you review the Department’s website prior
to filling out your return.
This booklet contains the instructions required by most S
Corporations. If you need forms, we encourage you to visit
our website at dor.georgia.gov. There you can download
forms and obtain up-to-date tax information and news from
the Department of Revenue.
The Department of Revenue, as outlined in the Taxpayer Bill
of Rights (https://dor.georgia.gov/taxpayer-bill-rights), will
provide “fair, courteous and timely service” to the taxpayers
of Georgia. Our mission is to administer the tax laws of the
state of Georgia fairly and efficiently in order to promote
public confidence and compliance while providing excellent
customer service.
Frank M. O’Connell
Revenue Commissioner

The Georgia Department of Revenue accepts Visa, American
Express, MasterCard, and Discover credit cards for payment of:

√
√

Current-year individual and corporate tax payments;

√

Individual and corporate estimated tax payments.

.

Liabilities on Department of Revenue-issued assessment
notices;

WHAT’S INSIDE?

. Adjustments to Federal Income.........................................4
Allocation and Apportionment of Income............................5
Double-Check List and Common Errors..........................23
Electronic Filing.............................................Front Cover, 3
Estimated Income Tax........................................................9
Extension Information.........................................................8
Filing Requirements...........................................................3
Georgia Tax Center (GTC).................................................. 2
Net Worth Tax Instructions..............................................6,7
Penalties and Interest........................................................ 6
Tax Credits................................................................. 12-22
Telephone Assistance.........................................................8
What’s New ...................................................................... 3
When and Where to File ......................................................4

Georgia Tax Center
What is the Georgia Tax Center? The Georgia Tax Center (GTC) is the Department of Revenue’s secure
self-service customer facing portal for making online Individual or Business Tax payments and for corresponding with the
Department.
Who Can Sign Up? Any taxpayer that pays taxes in the State of Georgia is eligible to use GTC for Adult Entertain-

ment Tax, Alcohol License, Composite Tax, Corporate Income Tax, Fiduciary Income Tax, Fireworks Excise Tax, International Fuel Tax, Motor Fuel Distributor Tax, Non-Prepaid 911 Charge, Prepaid Wireless 911 Charge, Public Service
Commission, Public Utilities and Airlines, Qualified Timberland Property, Railroad Equipment, Sales & Use Tax, State
Hotel-Motel Fee, Tobacco License, Transportation Services Tax, Withholding Misc., Withholding Misc. Film and Withholding Tax. For more information, see https://gtc.dor.ga.gov.
Note: Third party filers can sign up for GTC to access their clients information with the proper documentation and authorization. For more information see https://dor.georgia.gov/taxes/information-tax-professionals/third-party-filers.

How Do I Sign Up? To use GTC, visit our website at https://gtc.dor.ga.gov. First time users must register before
accessing tax accounts. To register, you will need:
•
•
•
•
•

Tax type account number
Federal Employer Identification Number (FEIN) / Social Security Number (SSN)
Amount of your last payment
ZIP code of your business location
A valid e-mail address

Please visit our website for instructional videos and frequently asked questions: dor.georgia.gov/georgia-tax-center-help

GTC Features
•

Register a new business and receive an account number in 15 minutes!

•

Request:
o

Refund

o

Filing frequency change

o

Address updates

o

Penalty waivers

o

Protest of Proposed Assessments

•

Register and add access to accounts

•

Submit and/or amend returns

•

View account balances

•

Make payments for returns and assessments

•

View copies of correspondence

•

Request Tax Clearance Letter
For a complete list of features visit GTC at https://gtc.dor.ga.gov

Page 2

GENERAL INFORMATION: INCOME TAX
INTRODUCTION
Georgia law recognizes an election to file as an S Corporation
under the provisions of the I.R.C. as defined in the income tax
laws of Georgia, only in cases of nonresident shareholders
who must complete Form 600S-CA. It also provides for the
imposition of a Net Worth Tax.
WHAT’S NEW
Passive Loss/Capital Loss Deduction: A new line was added to Schedule 1, Computation of Georgia Taxable Income for
this type of deduction. The deduction cannot exceed Passive
Gains/Capital Gains included in Schedule 1 Line 3 of Form
600S. A schedule must be attached when this line is used. The
schedule must include the Loss Year, Passive/Capital Loss from
Federal Return, Passive/Capital Loss Apportioned to Georgia,
Amount Utilized and the Passive/Capital Loss Carry Forward.
Current Year NOL Types: Normal Loss, Farm Loss and
Insurance Loss checkboxes added to Schedule 10, Georgia
NOL Carry Forward Worksheet.
Georgia Treatment of Research and Experimental
Expenditures: Under the Federal Tax Cuts and Jobs
Act, taxpayers must amortize research and experimental
expenditures over five years for tax years beginning on or
after January 1, 2022. However, Georgia does not follow the
Federal rule and allows taxpayers to fully deduct research and
experimental expenditures in the tax year they were paid or
incurred for tax years beginning on or after January 1, 2022.
New Tax Credits: Qualified Foster Child Donation and
Qualified Law Enforcement Donation credit. See Tax Summary
for more details, https://dor.georgia.gov/tax-credit-summaries.
Historic Rehabilitation Tax Credits: These credits have
been extended and revised, for more information, see Tax
Credits Section in this booklet or https://dor.georgia.gov/taxcredit-summaries.
Qualified Education Expense and Qualified Rural Hospital
Expense: These credits have been revised, for more
information, see Tax Credits section in this booklet or https://
dor.georgia.gov/tax-credit-summaries.
New Facilities Job Credit Force Majeure Update to Include
Disease Pandemic: For projects certified after July 1, 2023
for the new facilities job credit but fail to meet the job or payroll
maintenance requirements during the recapture period, force
majeure relief from these maintenance requirements now
includes pandemics. A pandemic is defined as an outbreak
of disease that occurs over a wide geographic area, affects a
significant proportion of the population, causes a substantial
and unforeseeable threat to the public health, and materially
impacts the ability to conduct business.
Quality Jobs Tax Credit: This credit has been revised, for
more information, see Tax Credits section in this booklet or
https://dor.georgia.gov/tax-credit-summaries.
Qualified Education Donation Credit:This credit has been
extended. For more information, see Tax Credits Section in
this booklet or https://dor.georgia.gov/tax-credit-summaries.
FEDERAL TAX CHANGES/CONFORMITY, LEGISLATION, AND OTHER POLICY INFORMATION
Federal Tax Changes/Conformity with Federal Changes,
New Legislation, and other Policy Information are available
via the Department’s website https://dor.georgia.gov/taxes/
tax-rules-and-policies/.
FILING REQUIREMENTS
All corporations that own property, do business in Georgia,
or derive income from Georgia sources are required to file
a Georgia income tax return. Please round all dollar entries.
Nonresidents only need to file a single consent in the year in
Page 3

which the Subchapter “S” Corporation is first required to file a
Georgia income tax return. For a Subchapter “S” Corporation
in existence prior to January 1, 2008, the consent agreement
must be filed for each shareholder in the first Georgia tax
return filed for a year beginning on or after January 1,
2008. A consent agreement will also need to be filed in any
subsequent year for any additional nonresident who becomes
a shareholder of the Subchapter “S” corporation in that year.
Georgia resident shareholders of Subchapter “S” Corporations
may make an adjustment to Federal adjusted gross income
for Subchapter “S” income where the Subchapter “S” election
is not recognized for Georgia purposes or by another state.
The adjustment is allowed in order to avoid double taxation on
this type of income. Therefore, this adjustment will be allowed
only for the portion of income on which tax was actually paid
by the corporation to Georgia or to another state(s).
ELECTRONIC FILING REQUIREMENTS
Taxpayers that remit payments by electronic funds transfer,
whether on a mandatory or voluntary basis, must file all associated returns electronically. Also, a nonindividual income
tax return must be electronically filed when the Federal
counterpart of such return is required to be filed electronically
pursuant to the Internal Revenue Code of 1986 or Internal
Revenue Service regulations. Finally, a return is required to
be electronically filed if the return generates, allocates, claims,
utilizes, or includes in any manner a series 100 credit (see
page 12, etc.).
TWO-DIMENSIONAL (2D) BARCODE FORMS
The Department of Revenue has given approval to certain
software companies to produce tax programs that include
a 2D barcode. A list of these companies is available on our
website at dor.georgia.gov.
NOTE: The Department of Revenue encourages the use of 2D
barcode returns; however, we neither support nor recommend
any software company. Returns with a 2D barcode should
be mailed to the address indicated by the software program.
CORPORATE PARTNERS OF PARTNERSHIPS
A corporation will be considered to own property in Georgia,
do business in Georgia, or have income from Georgia sources
whenever the corporation is a partner, whether limited or
general, in a partnership which owns property or does
business in Georgia, or has income from Georgia sources.
DEFERRED COMPENSATION
A nonresident, who receives deferred compensation or
income from the exercise of stock options that were earned
in Georgia in a prior year is required to pay tax on the income,
but only if the prior year’s income exceeds the lesser of: 1)
5 percent of the income received by the person in all places
during the current taxable year; or 2) $5,000. However, the
income is not taxed if Federal law prohibits the state from
taxing it. Federal law prohibits state taxation of some types
of retirement income including pensions as well as income
received from nonqualified deferred compensation plans if the
income is paid out over the life expectancy of the person or at
least 10 years. An employer is required to withhold Georgia
income tax on any amounts that are required to be included
in the nonresident’s income. See Regulation 560-7-4-.05 for
more information.
PV CORP PAYMENT VOUCHER
If you owe taxes, mail your return and payment with Form
PV- CORP. If you file electronically, mail Form PV- CORP with
your payment to the address on the form. Do not use Form
PV-CORP as a substitute for form IT-560C. Failure to properly
complete and mail the PV-CORP could result in delayed or
improper posting of your payment.

GENERAL INFORMATION: INCOME TAX (continued)
WHEN AND WHERE TO FILE
The return is due on or before the 15th day of the 3rd month
following the close of the taxable year. This would be March
15th if filing on a calendar-year basis. If the due date falls on
a weekend or holiday, the return shall be due on the next day
that is not a weekend or a holiday. Returns should be mailed
to Georgia Department of Revenue, Processing Center, P.O.
Box 740391, Atlanta, Georgia 30374-0391.
RELATION TO FEDERAL RETURN
The Georgia return correlates to the Federal return in most
respects (see page 3 for a link to the Federal Tax Change
Section on the website). The accounting period and method for
the Georgia return must be the same as on the Federal return.
A complete copy of the Federal return and all supporting
schedules must be attached to the Georgia return.
If a Federal audit results in a change in taxable income, the
taxpayer shall file an amended Form 600S return reflecting
the changed or corrected net income within 180 days of
the final IRS determination. The return should be mailed to:
Processing Center, Georgia Department of Revenue, P.O.
Box 740391, Atlanta, Georgia 30374-0391. Further, if the
changes result in a refund, the refund must be claimed within
one year of the date the changes are submitted. Please check
the “Amended due to IRS Audit” box on page 1 of Form 600S.
S CORPORATION REPRESENTATIVE
On Page 1 of Form 600S indicate the S Corporation
representative. See Regulation 560-7-3-.11 for more information.
QUALIFIED SUBCHAPTER S SUBSIDIARY (QSSS)
For income tax purposes, Georgia follows the Federal
treatment for a Qualified Subchapter S Subsidiary (QSSS).
However, the QSSS and its parent must file separate net worth
tax returns. If the parent is not registered with the Secretary of
State, and does not do business or own property in Georgia
(other than through the QSSS), they would not be required
to file a net worth tax return. If this is the case, please check
the “QSSS Exempt” box on page 1 of the Form 600S.
Qualified Subchapter S Subsidiary (QSSS) Credit
Instructions. In addition to filing the net worth tax return, the
QSSS should complete Schedule 11 if the QSSS generates
credits or has credits assigned, allocated, or transferred to
it. Also, Schedule 12 should be used to transfer the credits
to the parent S Corporation and Schedule 13 should be
completed if applicable. This is necessary so that the returns
can be processed and the credits flow to the proper taxpayer.
FREQUENTLY ASKED QUESTIONS
Frequently asked questions regarding S corporations,
corporations, partnerships, and LLCs are available on our
website at https://dor.georgia.gov/help/faqs.

PUBLIC LAW 86-272

Public Law 86-272 provides an exemption from taxation in
the following circumstances. If the employee merely solicits
orders for sales of tangible personal property that are sent
outside of Georgia for approval and are filled and shipped
from outside Georgia (from a state other than Georgia where
the employee’s corporation conducts its business) then the
exemption from taxation may apply. It must be noted that if an
employee goes beyond mere solicitation then the exemption
does not apply. Additionally, the Public Law 86-272 exemption
does not apply to the net worth tax, so a Form 600 or 600S
must be filed with Georgia and the net worth tax must be paid
if due. Even when the exemption applies, we recommend that
the corporation complete all schedules on the Georgia return
relating to income tax and attach a copy of its Federal income
Page 4

tax return. Attach a statement that indicates the Corporation’s
belief that it falls under the protection of Public Law 86-272.
Additionally, they should check the box on page 1 of the form.
COMPUTING GEORGIA TAXABLE INCOME
SCHEDULE 1

If an S Corporation is required to pay tax at the Federal level,
it may be required to pay tax at the state level. This income
would be apportioned to Georgia by multistate S Corporations.
If you are claiming the Passive Loss/Capital Loss Deduction
you must include a statement with the following: Loss Year,
Passive/Capital Loss from the Federal Return, Passive/Capital
Loss apportioned to Georgia, Amount utilized and the Passive/
Capital Carry Forward.
ADJUSTMENTS TO FEDERAL INCOME OF SHAREHOLDERS

To determine total income for Georgia purposes, certain
additions and subtractions as provided by Georgia law are
included in the Schedule 6 computation. Lines 8 and 10 of
Schedule 6 provide for modifications required by Georgia
law. The total of the additions to Georgia income should
be indicated on Schedule 6 and listed on Schedule 7. Total
subtractions from Federal income should be indicated on
Schedule 6 and listed on Schedule 8. The more commonly
used items are listed in each of these schedules.
A corporation must add back all intangible expense
and related interest expense directly or indirectly paid
to a related member. All such expense must be listed as
an addition to Federal income even if the taxpayer qualifies
for an exception. If the taxpayer qualifies for a full or partial
exception, Form IT-Addback must be completed in order to
take a subtraction on Schedule 8 for all or any portion of the
addition listed on Schedule 7.
A corporation must add back all captive REIT expenses directly
or indirectly paid to a related member. All such expenses must
be listed as an addition to Federal income even if the taxpayer
qualifies for an exception. If a taxpayer qualifies for a full or
partial exception, Form IT-REIT must be completed.
A taxpayer must addback payments of more than $600 in
a taxable year made to employees who are not authorized
employees and who are not excepted by O.C.G.A.§ 48-7-21.1.
An authorized employee is someone legally allowed to work
in the United States.
Additionally, adjustments due to Federal tax changes should be
reported as stated on the Department’s website (see page 3).
U.S. obligation income subtracted must be reduced by direct
and indirect interest expense. To arrive at such reduction, the
total interest expense is multiplied by a fraction, the numerator
of which is the taxpayer’s average adjusted basis of the U.S.
obligations, and the denominator of which is the average
adjusted basis of all assets of the taxpayer. See Georgia
Regulation 560-7-3-.10.
Taxpayers who are parties to state contracts may subtract from
Federal taxable income or Federal adjusted gross income 10%
of qualified payments to minority subcontractors or $100,000,
whichever is less, per taxable year. The Commissioner of
the Department of Administrative Services maintains a list of
certified minority subcontractors for the Revenue Department
and general public. To register as a minority subcontractor or
to view the list, visit doas.ga.gov/state-purchasing/supplierservices.
A corporation may subtract federally taxable interest received
on Georgia municipal bonds designated as “Build America
Bonds” under Section 54AA of the Internal Revenue Code of

GENERAL INFORMATION: INCOME TAX (continued)
1986. ‘Recovery Zone Economic Development Bonds” under
Section 1400U-2 of the Internal Revenue Code or any other
bond treated as a “Qualified Bond” under Section 6431(f) of
the Internal Revenue Code are considered “Build America
Bonds” for this purpose.
A corporation may subtract federally taxable interest received
on Georgia municipal bonds issued by the State of Georgia
and certain authorities or agencies of the State of Georgia for
which there is a special exemption under Georgia law from
Georgia tax on such interest.
Georgia follows the provisions of I.R.C. Section 163(j) as they
existed before the 2017 Tax Cuts and Jobs Act.
Georgia does not follow I.R.C. 174 under the Tax Cuts and
Jobs Act.
See Georgia Code Section 48-7-21 for additional adjustments.
ALLOCATION AND APPORTIONMENT OF INCOME
SCHEDULES 5, 6, and 9
If any corporation, domestic or foreign, does business or
owns property both within and outside Georgia, the Georgia
ratio as computed on Schedule 9 should be used to compute
Georgia taxable income for nonresidents. Schedule 6 reflects
flow-through income from the Federal return, which is taxable
to the individual shareholders.
A resident shareholder is required to report their full share
of corporate income or loss. A nonresident shareholder,
however, is required to report only their share of allocated and
apportioned income as computed on Schedule 5. Please also
see the Federal Tax Changes section on the Department’s
website for separately stated shareholder adjustments (see
page 3 for the link).
General instructions for computing the apportionment ratio
and apportioned and allocated income are listed below. If the
business income of the corporation is derived from Georgia
sources, from property owned or business done within the
State, and derived in part from property owned or business
done outside the State, the tax is imposed only on that portion
of the business income which is reasonably attributable to
Georgia sources and property owned and business done
within the State, to be determined as follows:
(1) Interest received on bonds held for investment and income
received from other intangible property held for investment
are not subject to apportionment. Rentals received from
real estate held purely for investment purposes and not
used in the operation of the business are also not subject
to apportionment. All expenses connected with the interest
and rentals from such investments are likewise not subject
to apportionment but must be applied against the investment
income. The net investment income from intangible property
shall be allocated to Georgia if the situs of the corporation is
in Georgia or the intangible property was acquired as income
from property held in Georgia, or as a result of business done
in Georgia. The net investment income from tangible property
in Georgia shall be allocated to Georgia.
(2) Gain from the sale of tangible or intangible property
not held, owned, or used in connection with the trade or
business of the corporation nor for sale in the regular course
of business, shall be allocated to the State if the property held
is real or tangible personal property situated in the State, or
intangible property having an actual situs or a business situs
within the State. Otherwise, such gain shall be allocated
without the State.
(3) When net income of the above classes has been separately
allocated and deducted, the remainder of the net business
Page 5

income shall be apportioned by application of the following:
ONE FACTOR FORMULA
(a) Gross Receipts Factor: The gross receipts factor is
the ratio of gross receipts from business done within this
State to total gross receipts from business done everywhere.
When receipts are derived from the sale of tangible personal
property, receipts shall be deemed to have been derived
from business done in this State if they were received from
products shipped or delivered to customers within this State.
When receipts are derived from business other than the sale
of tangible personal property, receipts shall be deemed to
have been derived from business done in this State if they
were received from customers within this State, or if they are
otherwise attributable to this State’s marketplace.
•	 For tax years beginning on or after January 1, 2008,
the Georgia apportionment ratio shall be computed by
applying only the gross receipts factor. See Georgia
Comp. Rules and Regulations 560-7-7-.03 for specific
details.
•	 For tax years beginning on or after January 1, 2006,
a company whose net income is derived from the
manufacture, production, or sale of tangible personal
property and from business other than the manufacture,
production, or sale of tangible personal property must
include gross receipts from both activities in its receipts
factor.
•	 For tax years beginning on or after January 1, 2006, a
company whose net income is derived from business
other than the manufacture, production, or sale of tangible
personal property only includes in its receipts factor gross
receipts from activities which constitute the company’s
regular trade or business.
(b) Apportionment of Income: Business Joint Ventures
and Business Partnerships. A corporation or partnership
that is involved in a business joint venture, or is a partner in
a business partnership, must include its pro rata share of the
joint venture’s or partnership’s gross receipts values in its own
apportionment formula.
CREDIT USAGE AND CARRYOVER (SCHEDULE 11)
Enter the information as specified on each line of Schedule 11.
With respect to Line 10, the “Tax Credits” summary in this booklet
includes information regarding which credits can be sold.
AMENDED RETURNS
Georgia has no separate form for filing an amended return.
To amend a return, check the amended return box on
Form 600S. A copy of the Federal Form 1120S or Federal
audit adjustments must be attached. The amended return
should be mailed to Georgia Department of Revenue,
Processing Center, P. O. Box 740391, Atlanta, Georgia
30374-0391. Amended returns are required to be sent
electronically if the original return was filed electronically.
Georgia House Bill 849 was enacted in 2017. This bill
modifies Code Section 48-7-53 and provides for Georgia S
Corporation audit adjustments and related appeals effective
for taxable years beginning on or after January 1, 2017 and
earlier if the Department and the S Corporation agree. For
a Georgia S Corporation audit, an S corporation may elect
to pay the tax due on behalf of its shareholders by checking
the box on page 1 of Form 600S. This election can be
made on an original or amended return filed before the audit
starts or at the time of the audit. If the election is made, the
S Corporation will not file an amended return, instead the
Department will issue a notice to the S Corporation to facilitate
the collection of the tax. If the election is not made, the S
Corporation and its shareholders must file amended returns.

GENERAL INFORMATION: INCOME TAX (continued)

With a Federal S Corporation adjustment, the S Corporation
is required to file an amended Georgia return (please check
the “Amended due to IRS Audit” box on page 1 of Form 600S).

accrues at the rate of 12 percent annually. Interest that
accrues for months beginning on or after July 1, 2016 accrues
as provided by Georgia Code Section 48-7-81.

CLAIMS FOR REFUNDS
A claim for refund of tax paid must be made within three
years from the later date of either the payment of the tax or
the due date of the income tax return (including extensions
which have been granted).

ELECTION TO PAY AT THE ENTITY LEVEL
A S Corporation may annually make an irrevocable election
to pay income tax at the entity level instead of passing the
income tax liability through to the shareholders. To make the
election, the S Corporation must check the box, “S Corporation
elects to pay the tax at the entity level”, on the Form 600S by
the due date or extended due date of the Form 600S.
The election to pay tax at the entity level is binding on
all shareholders, including nonresident shareholders. A
composite return is not required when the election is made.
Any allocable shares of the electing S Corporation’s income
or loss included on the shareholders’ Federal adjusted gross
income must be adjusted on the shareholders’ own Georgia
income tax returns. The shareholders are not eligible to claim
a credit for taxes paid to Georgia with respect to income taxed
at the S Corporation level.
Tax attributes, including but not limited to credits and net
operating losses, do not pass through to the shareholders but
remain with the electing S Corporation regardless of whether
an election is made for subsequent taxable years. However,
an electing S Corporation may make an irrevocable election to
pass through all or part of any credit, that is generated within
the applicable statute of limitation period for the S Corporation,
to its shareholders for the taxable year the credit is generated.
The election to pass credits through to the shareholders is not
available for the Qualified Education Expense Tax Credit, the
Qualified Education Donation Credit, and the Qualified Rural
Hospital Expense Tax Credit.
The electing S Corporation must make estimated tax
payments in the same manner as a C Corporation. Estimated
payments made by the shareholders are not eligible to be
transferred to the electing S Corporation but can be used to
compute the penalty on Form 600-UET as if the electing S
Corporation had made such payments. See Code Section
48-7-21 and Regulation 560-7-3-.03 for more information.

LATE PAYMENT PENALTY
A taxpayer having an extension must prepay the Georgia tax
due using Form IT-560C. Credit for this prepayment should
be claimed on Form 600S, Schedule 4, Line 2. If tax is not
paid by the statutory due date of the return, a late payment
penalty of 1/2 of 1% per month (up to 25%) will accrue until
the tax is paid. This penalty will accrue from the statutory due
date regardless of any extension for filing the return. Late
payment penalty is not due if the return is being amended
due to an IRS audit; check the “Amended due to IRS Audit”
box on page 1 of Form 600S.
PENALTIES AND INTEREST
The Georgia Code imposes certain penalties as follows:
•	 Delinquent filing of a return–5% of the tax not paid by
the original due date for each month or fractional part
thereof up to 25%.
•	 Failure to pay tax shown on a return by the due date–1/2
of 1% of the tax due for each month or fractional part
thereof up to 25%. Failure to pay tax penalty is not due if
the return is being amended due to an IRS audit.
• Negligent underpayment of tax–5% thereof.
•	 Fraudulent underpayment–50% thereof.
•	 Underpayment of estimated tax- see IT-611 Instructions
Booklet for more information.
Note: The combined total of the penalty for delinquent filing
of a return and failure to pay tax shown on a return cannot
exceed 25% of the tax not paid by the original due date.

GENERAL INFORMATION: NET WORTH TAX
INITIAL FILING AND DUE DATES
A new domestic or foreign corporation doing business or owning property in Georgia must file an initial net worth tax return on or
before the fifteenth day of the third calendar month after incorporation or qualification. The initial net worth tax return is based on
the beginning net worth (Federal Schedule L) of the corporation and covers the tax period from the incorporation/ qualification date to the end of the year. If this return is for a short period of less than six months, the tax due is 50%. The initial net
worth return cannot be combined with the initial income tax return because the due dates do not coincide. Thereafter, an
annual return must be filed on or before the fifteenth day of the third month following the beginning of the corporation’s taxable period.
PENALTIES AND INTEREST
Penalty for delinquent filing is 10% of tax due. Penalty for delinquent payment is 10% of tax due. In addition, interest as specified on page 6 is due on delinquent payments from the due date until the liability is paid in full.
COMPUTATION OF TAX
The tax is graduated based on net worth (see page 7 for the table). In the case of new corporations, this is the beginning
net worth. Thereafter, it is the net worth on the first day of the corporation’s net worth taxable year. Net worth is defined
to include issued capital stock, paid in surplus and retained earnings. Treasury stock should not be deducted from issued
capital stock. Foreign corporations qualified to conduct business in Georgia are taxed based upon the portion of net worth
employed within Georgia as computed on Schedule 3, using the ratio computed on Schedule 2. To compute the ratio, the
property factors will reflect total balance sheet assets within Georgia and everywhere. This includes all intangible assets reflected on the Federal return such as accounts receivable. Gross receipts factors are determined per instructions on page 5.
For net worth tax purposes, a foreign corporation is a corporation or association created or organized under the statutory laws
of any nation or state other than Georgia.
Domestic corporations and domesticated foreign corporations are taxed based upon total net worth (100% ratio) and
should not use the ratio computation in Schedule 2.
Page 6

GENERAL INFORMATION: NET WORTH TAX(continued)
For net worth tax purposes, a domestic corporation is a corporation or association created or organized under the statutory
laws of Georgia. A domesticated foreign corporation is a foreign corporation which has agreed under the provisions of Georgia
law to be treated as a domestic corporation and to be taxed based upon total net worth.
A dormant corporation must file a net worth tax return and pay the tax, if applicable, to retain its charter. A foreign corporation
admitted into Georgia must file a net worth tax return until it has withdrawn from Georgia. A corporation with a deficit net worth
must file a return but does not owe the net worth tax. A corporation that has been liquidated and is filing its final income tax
return is not required to file a net worth tax return, nor is it entitled to a refund of previously paid net worth tax.
NET TAX DUE OR OVERPAYMENT
Schedule 4 provides for the computation of net tax due or the net overpayment of the two taxes. Compute any penalty and
interest due for the respective taxes and enter the amounts on the applicable lines.
QUALIFIED SUBCHAPTER S SUBSIDIARY (QSSS)
For income tax purposes, Georgia follows the Federal treatment for a QSSS. However, the QSSS and the parent must file
separate net worth tax returns. If the parent is not registered with the Secretary of State and does not do business or own
property in Georgia (other than through the QSSS) they would not be required to file a net worth tax return. Please check the
“QSSS Exempt” box on page 1 of the 600S if the parent is not subject to net worth tax.
FEDERAL SCHEDULE L REQUIREMENT
Schedule L must be completed on the Georgia copy of the Federal return even if it is not required for Federal purposes.
TREATMENT OF SHORT PERIOD NET WORTH TAX RETURN
All corporations filing a short period Georgia income tax return for any reason other than filing an initial or final return shall
compute the net worth in accordance with the following instructions:
The net worth tax shall be computed based upon the net worth per the ending balance sheet of the short period return.
The tax is then prorated based on the number of months included in the short period return.
Note: Any short periods ending on the 1st through the 15th day of the month are backed up to the last day of the preceding
month. Years ending on the 16th day or later are moved forward to the last day of that month.
EXAMPLE: Corporation A files a three-month short period return ending March 31, 2018. The Georgia taxable net worth per
the March 31, 2018 balance sheet is $900,000. The Georgia net worth tax is computed as follows: Tax per scale $500.00 x
3/12 = $125.00 net worth tax due.
NET WORTH TAX TABLE
DOMESTIC AND DOMESTICATED FOREIGN CORPORATIONS
Based on net worth including issued capital stock, paid-in surplus, and earned surplus (Schedule 3, Line 4).
FOREIGN CORPORATIONS
Based on net worth including issued capital stock, paid-in surplus, and earned surplus employed within Georgia (Schedule 3, Line 6).
Not exceeding.........................100,000.00............................................................................................................................0.00
Over....................................... 100,000.00	
and not exceeding	
150,000.00...........................................125.00
Over....................................... 150,000.00	
and not exceeding	
200,000.00...........................................150.00
Over....................................... 200,000.00	
and not exceeding	
300,000.00...........................................200.00
Over....................................... 300,000.00	
and not exceeding	
500,000.00...........................................250.00
Over....................................... 500,000.00	
and not exceeding 	
750,000.00...........................................300.00
Over....................................... 750,000.00	
and not exceeding
1,000,000.00..................................................500.00
Over.....................................1,000,000.00	
and not exceeding
2,000,000.00..................................................750.00
Over.....................................2,000,000.00	
and not exceeding
4,000,000.00...............................................1,000.00
Over.....................................4,000,000.00	
and not exceeding
6,000,000.00...............................................1,250.00
Over.....................................6,000,000.00	
and not exceeding
8,000,000.00...............................................1,500.00
Over.....................................8,000,000.00	
and not exceeding
10,000,000.00...............................................1,750.00
Over.................................. 10,000,000.00	
and not exceeding
12,000,000.00...............................................2,000.00
Over...................................12,000,000.00	
and not exceeding
14,000,000.00...............................................2,500.00
Over...................................14,000,000.00
and not exceeding 16,000,000.00...............................................3,000.00
Over...................................16,000,000.00	
and not exceeding
18,000,000.00...............................................3,500.00
Over...................................18,000,000.00	
and not exceeding
20,000,000.00...............................................4,000.00
Over.................................. 20,000,000.00	
and not exceeding
22,000,000.00...............................................4,500.00
Over.................................. 22,000,000.00......................................................................................................................5,000.00

Page 7

GENERAL INFORMATION

EXTENSION INFORMATION FOR CORPORATIONS
O.C.G.A. § 48-7-57 provides that a taxpayer need not apply for a Georgia extension if the taxpayer applies for and receives
an automatic six (6) month extension to file the Federal income tax return. If the return is received within the time extended by
the Internal Revenue Service, no late filing penalties will be incurred. Georgia law prohibits granting an extension for more
than six months from the due date of the return.
Failure to attach a copy of the Federal extension will result in the assessment of late filing penalties! If you do not need a Federal
extension, use Form IT-303 to request a Georgia extension if necessary.
If an extension was granted but the tax was not paid by the statutory due date, late payment penalties will be assessed until the
tax is paid (income tax at 1/2 of 1% per month up to 25% of the tax due; net worth tax at 10%). Also, interest will be assessed
as specified on page 6 from the statutory due date until the tax is paid in full. Late payment penalties and interest accrue from
the statutory due date regardless of an extension.
A taxpayer having an extension must also prepay the Georgia Tax. Form IT-560C must be included with the remittance. Credit
for the prepayment should be claimed on Form 600S, Schedule 4, Line 2. An extension of time to file does not alter the interest
or penalty charge for late payment of tax.
NOTE: Check the “Extension” box on Form 600S if a Federal or Georgia extension was granted. Failure to check the
extension box will result in assessment of a late filing penalty.

DIRECT DEPOSIT OPTION
DIRECT DEPOSIT- Fast Refunds! Choose Direct Deposit.
A fast, simple, safe, secure way to have your refund deposited
automatically to your checking or savings account. Check the
appropriate box for the type of account. Do not check more
than one box. You must check the correct box to ensure your
direct deposit is accepted.
The routing number must be nine digits. The first two digits
must be 01 through 12 or 21 through 32. Ask your financial
institution for the correct routing number to enter if:
• The routing number on a deposit slip is different from the
routing number on your checks.
• The deposit is to a savings account that does not allow
you to write checks or
• Your checks state they are payable through a financial institution different from the one at which you have your checking
account. The account number can be up to 17 characters
(both numbers and letters). Include hyphens, but omit spaces
and special symbols. Enter the number from left to right and
leave any unused boxes blank.
Reasons your direct deposit may be rejected – If any of the
following apply, your direct deposit request will be rejected
and a check will be sent:

Page 8

• Any numbers or letters are crossed out or whited out.
• You request a deposit of your refund to an account that is
not in your name (such as your tax preparer’s own account).
ANNUAL REGISTRATION WITH
THE SECRETARY OF STATE
All Georgia corporations and foreign corporations that “qualify”
to do business in Georgia must file an annual registration with
the Secretary of State. Registration, including the fee, is due between January 1 and April 1. The Secretary of State will send a notice to the corporation’s principal office address in early January.
Foreign corporations (those formed in a state other than
Georgia) should determine the need to obtain a Certificate of
Authority by reviewing O.C.G.A. § 14-2-1501. The statute
can be read and an application obtained at sos.ga.gov.
Annual registration and certificate of authority obligations are
separate from any filings with the Department of Revenue.
HELPFUL RESOURCES (CENTER)
Customer Contact Center ..........................1-877-423-6711
Secretary of State...........................................404-656-2817

INSTRUCTIONS FOR NONRESIDENT SHAREHOLDERS
Nonresident shareholders of corporations doing business both within and outside Georgia shall compute their portion of
the corporation’s allocated and apportioned income from the schedules on Form 600S. The Georgia net income of nonresidents computed on Schedule 5, Line 7 should be multiplied by the percentage of stock owned. The result of this calculation
yields the beginning taxable income for the nonresident which should be reported on the Georgia individual tax return.
This beginning taxable income should be adjusted for the separately stated items mentioned in the “Federal Tax Changes”
section on the Department’s website and the “ Adjustments to Federal Income of Shareholders” section on page 4. Under
Sections 48-7-21 and 48-7-27 of the Georgia Code thereunder, all nonresident shareholders must execute an agreement
on Form 600S- CA wherein the shareholders agree to pay Georgia income tax on their portion of the corporation’s Georgia
taxable income or the S Corporation election will be terminated by the Commissioner (see page 3 for more information).
Special Note: Any S Corporation with nonresident members shall be subject to withholding tax unless a composite return,
Form IT-CR, is filed, the S Corporation makes an irrevocable election to pay income tax at the entity level or the aggregate
annual member’s share of the taxable income sourced to Georgia is less than $1,000.00. However, if the shareholder has a
properly executed 600S-CA, withholding is not due provided the shareholder reports the income and pays the tax. Permission
to file a composite return is not required. To ensure Georgia’s recognition of your S Corporation election, attach a properly
completed Form 600S-CA for each nonresident shareholder to Form 600S when it is filed, even if a composite return has
been filed. Please see Page 3 for details as to when and how often the 600S-CA is required. If applicable, please check the
“Composite Return Filed” box on Form 600S, Page 1. For composite return information and / or forms call 1-877-423-6711.
CORPORATION ESTIMATED INCOME TAX
For Georgia residents, income on most S Corporations flows through to the individual shareholders and estimated tax is paid
accordingly at the individual level. If your S Corporation must pay estimated tax at the corporate level, see the Estimated
Income Tax section of this booklet.

Page 9

GEORGIA NOL CARRY FORWARD WORKSHEET EXAMPLE
A

B

C

D

E

F

Loss Year	
Loss Amount	
Income Year
NOL Utilized	
Balance	
Remaining NOL	
					
	2014	
$
225,351	
$
176,299	
$
49,052	
12/31/2015
						
2014
$
137,047	
$
39,252 	
12/31/2020
						
2014	
$
110,167	
$
26,880 	
12/31/2021
						
2015
	
$
86,280	
	
$
86,280
						
2016
$
116,287	
$
116,287	
						
						
2017
$
18,765	
$
18,765	
						
2018
$
52,711	
$
52,711	
						
2019	
$
300,000
$ 300,000	
						
	
						
						
						
						
						
						
						
						
						
						
						
						
						
						

M
A
X
E

E
L
P

	

$ 684,210
$ 450,000
	 2. Current Year Income / (Loss) (Schedule 1, Line 5 or Schedule 7, Line 7)						
1. NOL Carry Forward Available to Current Year

	

3. NOL from Taxable Years Beginning on or after 1/1/2018 Applied to Current Year (Cannot exceed 80% of
Line 2; see instructions for more information) (Enter on Schedule 1, Line 4)
4. NOL Carry Forward Available to Next Year (Line 1 less Line 3 plus any loss amount on Line 2)

INSTRUCTIONS

$ 360,000
$ 324,210

*Cannot Exceed the Current Year Income Reported on Line 2.
Column A: List the loss year(s).
Column B: List the loss amount for the tax year listed in Column A.
Columns C & D: List the years in which the losses were utilized and the amount utilized each year.
Column E: List the balance of the NOL after each year has been applied. (Column B less Column D).
Column F: List the remaining NOL applicable to each loss year.
Total the remaining NOL (Col. F) and enter in the space at the bottom of the worksheet for “NOL Carry forward Available to Current Year”.
Then insert “Current Year Income / (Loss)” in the space provided and compute the remainder of the schedule. Create photocopies as needed.
Page 10

CORPORATION ESTIMATED INCOME TAX INSTRUCTIONS
CORPORATIONS THAT MUST FILE ESTIMATED TAX
The tax rate is 5.75%

Every domestic or foreign corporation subject to taxation in Georgia shall pay estimated tax for the taxable year if its net
income for such taxable year can reasonably be expected to exceed Twenty-Five Thousand Dollars ($25,000.00).
All corporate income tax must be paid directly to the Georgia Department of Revenue. The estimated tax shall be paid on the
specified dates so as to effect payment in full of the estimated tax by the 15th day of the twelfth month of the taxable year.
If the requirements to file estimated tax under Code Section 48-7-117 are first met as shown in the left-hand column of the
following table, then the estimated tax shall be due as shown in the remaining columns.
Failure to comply with the provisions of the law may result in a penalty of 5% of the income tax for failure to pay estimated
tax and a charge at a rate of 9% per annum for underpayment of estimated tax. Compute the 9% penalty on Form 600 UET
and check the “UET Annualization Exception attached” box if an exception applies and attach the 600 UET to the return.
Enter penalty from 600 UET on Schedule 4, Line 8 of Form 600S.
	 The following percentages of estimated tax shall
	 be paid on or before the fifteenth day of the:
	
	

4th MONTH 	
OF THE 	
TAXABLE 	
YEAR 	

6th MONTH 	
OF THE 	
TAXABLE 	
YEAR 	

9th MONTH 	
OF THE 	
TAXABLE 	
YEAR 	

12th MONTH
OF THE
TAXABLE
YEAR

25% 	

25% 	

25% 	

25%

33 1/3% 	

33 1/3% 	

33 1/3%

50% 	

50%

Before the first day of the fourth month of the taxable year. 	
After the last day of the third month and before the first day 		
of the sixth month of the taxable year.

After the last day of the fifth month and before the first day 			
of the ninth month of the taxable year.
After the last day of the eighth month and before the first 				
day of the twelfth month of the taxable year.

100%

NEW ESTIMATED TAX FILERS

If you determine that you are required to file estimated tax, mail your initial payment along with Form 602ES. The estimated
tax worksheet is on the Form 602ES. Include your corporate name, address, telephone number, Federal Employer Identification Number, and the taxable year. For more information, contact the Department at 1-877-423-6711.
Form 602ES should be mailed to State of Georgia, Department of Revenue, P.O. Box 105136, Atlanta, Georgia 30348-5136.
Check or money order for payment of tax should be made payable to Georgia Department of Revenue. Include your Federal
Employer Identification Number on your check or money order.

ELECTRONIC PAYMENT

In accordance with O.C.G.A. § 48-2-32(f)(2), corporate estimate taxpayers with quarterly payments of more than $10,000 must
pay via electronic funds transfer. A penalty of 10% will be added if the payment is not submitted electronically through GTC.
You may pay corporate income and estimated taxes using Georgia Tax Center (GTC). This integrated tax system gives
corporate taxpayers the ability to pay the tax via a secure internet connection.
Please visit the GTC website at https://gtc.dor.ga.gov for more information. You may also contact the Electronic Services
Group at 1-877-423-6711.

Page 11

EXAMPLE OF HOW TO FILL OUT A TAX CREDIT SCHEDULE
FOR CREDITS THAT DO NOT REQUIRE PRE-APPROVAL
If receiving the same credit type from multiple entities, you must complete one tax credit schedule for each credit code.
For the credit generated this tax year, list the Company Name and ID number if applicable. If the credit originated with
this taxpayer, enter this taxpayer’s name and ID#. Only enter a certificate number if the Department has provided a letter
with your unique certificate number because the credit is preapproved. Purchased credits and credits received from an
allocation or assignment should also be included on this schedule. If a credit is purchased from a previous year the credit
should be claimed as previous year credit.
1. Credit Code
2. Company Name

103
TAXPAYER’S NAME

ID Number

XYZ LLC

Credit Generated
45000
this Tax Year
ID Number
67-0009876

Credit Certificate #
3. Company Name

12-3456789

Credit Certificate #
									
4. Company Name ABC COMPANY

Credit Generated
3000
this Tax Year
ID Number
57-2233445

Credit Certificate #

Credit Generated
this Tax Year
ID Number

5. Company Name
Credit Certificate #

3000

Credit Generated
this Tax Year
ID Number

6. Company Name
Credit Certificate #

Credit Generated
this Tax Year
ID Number

7. Company Name
Credit Certificate #
8. Total available credit for this tax year (Sum of Lines 2 through 7)

Credit Generated
this Tax Year
8.

9. Enter the amount assigned to affiliated entities (See Schedule 13)

9.

10. Enter the amount of the credit sold (only certain credits can be sold; see instructions)

10.

11. Credit used for this tax year (Only when income tax is paid by the S Corporation)

11.

12. Total allocated to owners on Schedule 12

12.

13. Credit used on Form IT-CR

13.

14. Credits eligible to be sold that were not sold or allocated to owners from previous years

14.

15. Potential carryover to next tax year (Line 8 less Lines 9, 10, 11, 12, 13 plus Line 14)

15.

(enter on Schedule 4, Line 3)

(do not include amounts elected to be applied to withholding)

Page 12

51000

51000

0

EXAMPLE OF HOW TO FILL OUT A TAX CREDIT SCHEDULE
FOR CREDITS THAT REQUIRE PRE-APPROVAL
If receiving the same credit type from multiple entities, you must complete one tax credit schedule for each credit code.
For the credit generated this tax year, list the Company Name and ID number if applicable. If the credit originated with
this taxpayer, enter this taxpayer’s name and ID#. Only enter a certificate number if the Department has provided a letter
with your unique certificate number because the credit is preapproved. Purchased credits and credits received from an
allocation or assignment should also be included on this schedule. If a credit is purchased from a previous year the credit
should be claimed as previous year credit.
1. Credit Code
2. Company Name
Credit Certificate #

125
ID Number

TAXPAYER’S NAME

12-3456789

3. Company Name

Credit Generated
this Tax Year
ID Number

Credit Certificate #
									
4. Company Name

Credit Generated
this Tax Year
ID Number

Credit Certificate #

Credit Generated
this Tax Year
ID Number

0112233445

5. Company Name
Credit Certificate #

10000

Credit Generated
this Tax Year
ID Number

6. Company Name
Credit Certificate #

Credit Generated
this Tax Year
ID Number

7. Company Name
Credit Certificate #

Credit Generated
this Tax Year
ID Number

8. Company Name
Credit Certificate #

Credit Generated
this Tax Year
ID Number

9. Company Name
Credit Certificate #

Credit Generated
this Tax Year

10. Total available credit for this tax year (Sum of Lines 2 through 9)

10.

11. Enter the amount assigned to affiliated entities (See Schedule 11)

11.

12. Enter the amount of the credit sold (only certain credits can be sold; see instructions)

12.

13. Credit used for this tax year (enter here and on Schedule 3, Line 3)

13.

14. Potential carryover to next tax year (Line 10 less Lines 11, 12, and 13)

14.

Page 13

10000

10000

TAX CREDITS

Code

A return is required to be filed electronically if the return generates, allocates, claims, utilizes, or includes in
any manner a Series 100 credit.
Note: The Timber Tax Credit (145) is not refundable directly to an S Corporation. Instead it is refundable to
the owners (if not purchased).
Qualified Subchapter S Subsidiary (QSSS) Credit Instructions. In addition to filing the net worth tax return,the
QSSS should complete Schedule 11 if the QSSS generates credits or has credits assigned, allocated, or transferred to it. Also, Schedule 12 should be used to transfer the credit to the parent S Corporation and Schedule
13 should be completed if applicable. This is necessary so that the returns can be processed and the credits
flow to the proper taxpayer.
Disregarded Single Member LLC Credit Instructions. If the taxpayer owns or is owned by a disregarded single
member LLC, the single member LLC should be disregarded for filing purposes. All credits should be claimed on
the owner’s return. All tax credit forms should be filed in the name of the single member LLC but included with the
owner’s return. This is necessary so that the returns can be processed and the credits flow to the proper taxpayer.
102	

Employer’s Credit for Approved Employee Retraining. The retraining tax credit allows employers to claim certain costs of retraining employees to use new equipment new technology, or new operating systems. For tax years
beginning on or after January 1, 2009, approved retraining shall not include any retraining on commercially, mass
produced software packages for word processing, database management, presentations, spreadsheets, e-mail,
personal information management, or computer operating systems except a retraining tax credit shall be allowable for
those providing support or training on such software. The credit is calculated at 50% of the direct costs of retraining
full-time employees, up to $500 per employee per approved retraining program per year. For tax years beginning
on or after January 1, 2009, there is a cap of $1,250 per year per full-time employee who has successfully completed more than one approved retraining program. The credit may be utilized up to 50% of the taxpayer’s total state
income tax liability for a tax year. For tax years beginning on or after January 1, 2009, the credit must be claimed
within one year instead of the normal three-year statute of limitation period. Credits claimed but not used may be
carried forward for 10 years. For a copy of the Retraining Tax Credit Procedures Guide, contact the Technical
College System of Georgia. This credit should be claimed on Form IT-RC, with Program Completion forms signed
by Technical College System of Georgia personnel attached. For more information, refer to O.C.G.A. §48-7-40.5.

103	

Employer’s Jobs Tax Credit. This credit provides for a statewide job tax credit for any business or headquarters of
any such business engaged in manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism or research and development industries, but does not include retail businesses. If other requirements
are met, job tax credits are available to businesses of any nature, including retail businesses, in counties recognized
and designated as the 40 least developed counties.
Tier Designation

County Rankings

New Jobs Created

Credit
Amount

Tier 1

1 through 71

5 or more*

$3,500

Tier 2

72 through 106

10 or more

$2,500

Tier 3

107 through 141

15 or more

$1,250

Tier 4

142 through 159

25 or more

$750

Credits similar to the credits available in Tier 1 counties are potentially available to companies in certain less developed census tracts in the metropolitan areas of the state. Note that the average wage for each new job must be
above the average wage of the county that has the lowest average wage of any county in the state. Also, employers must make health insurance available to employees filling the new full-time jobs. Employers are not, however,
required to pay all or part of the cost of such insurance unless this benefit is provided to existing employees. For
taxpayers that initially claimed this credit for any taxable year beginning before January 1, 2009, credits are allowed
for new full-time employee jobs for five years in years two through six after the creation of the jobs. In Tier 1 and Tier
2 counties, the total credit amount may offset up to 100% of a taxpayer’s state income tax liability for a taxable year.
In Tier 3 and Tier 4 counties, the total credit amount may offset up to 50% of a taxpayer’s state income tax liability for
a taxable year. In Tier 1 counties and less developed census tracts only, credits may also be taken against a company’s income tax withholding. To claim the credit against withholding, a business must file Form IT-WH as provided in
the job tax credit regulation or as instructed by the Commissioner. A credit claimed but not used in any taxable year
may be carried forward for 10 years from the close of the taxable year in which the qualified jobs were established.
The measurement of the new full-time jobs and maintained jobs is based on averagemonthly employment. Georgia
counties are re-ranked annually based on updated statistics. This credit should be claimed on Form IT-CA. An additional $500 per job is allowed for a business located within a county that belongs to a Joint Development Authority
per O.C.G.A. §36-62-5.1. For taxpayers that create a new year one under DCA regulations for any taxable year
beginning on or after January 1, 2009, the following apply:
Page 14

TAX CREDITS (continued)
		
		

1. The definition of a business enterprise now also includes a business or headquarters of a business
that provides services for the elderly and persons with disabilities (only for the jobs credit provided
pursuant to O.C.G.A. §48-7-40).
2. The credit may be claimed beginning with the year the job is created as opposed to the year after the
job is created.
3. The credit may be claimed against withholding tax for a business enterprise engaged in a competitive
project (as certified by the Department of Economic Development) which is located in a tier 2, 3, or 4
county.
4. The additional new full-time jobs created in the 4 years after the initial year shall be eligible for the credit.
5. The credit must be claimed within one year instead of the normal three-year statute of limitation period.

*For a business enterprise that creates a new year one under DCA regulations for any taxable year beginning on or after January 1, 2012, in tier 1 counties, the business enterprise must increase employment by 2
or more new full-time jobs for the taxable year to be eligible for the credit. See the Job Tax Credit law (O.C.G.A.
§§ 48-7-40 and 48-7-40.1) and regulations for further information or refer to the Department of Community Affairs
website.

		

For taxable years beginning in 2020 and 2021, taxpayers that claimed the Jobs tax credit in a taxable year beginning
on or after January 1, 2019 and before December 31, 2019, have the option to utilize the number of new full-time
jobs that the taxpayer claimed in the taxable year beginning on or after January 1, 2019 and before December 31,
2019; or calculate the number of new full-time jobs based on the number of full-time jobs created and maintained
in that respective tax year.
104 	

Employer’s Credit for Purchasing Child Care Property. Employers who purchase qualified child care property will receive a credit totaling 100% of the cost of such property. The credit is claimed at the rate of 10% a
year for 10 years. Any unused credit may be carried forward for three years and the credit is limited to 50%
of the employer’s Georgia income tax liability for the tax year. Recapture provisions apply if the property is
transferred or committed to a use other than child care within 14 years after the property is placed in service. This credit should be claimed on Form IT-CCC100. For more information, refer to O.C.G.A. §48-7-40.6.

105	
	
	
	
	

Employer’s Credit for Providing or Sponsoring Child Care for Employees. Employers who provide or sponsor
child care for employees are eligible for a tax credit of up to 75% of the employers’ direct costs. The credit may not
exceed 50% of the taxpayer’s total state income tax liability for the taxable year. Any credit claimed but not used in any
taxable year may be carried forward for five years from the close of the taxable year in which the cost of the operation
was incurred. This credit should be claimed on Form IT-CCC75. For more information, refer to O.C.G.A. §48-7-40.6.

106	 	

Manufacturer’s Investment Tax Credit. Based on the same Tier Ranking as the Job Tax Credit program.
It allows taxpayer that has operated an existing manufacturing or telecommunications facility in the state for
the previous three years to obtain a credit against income tax liability. The credit is calculated on expenses directly related to manufacturing or to providing telecommunications services. Taxpayers must apply (use Form
IT-APP) and receive approval before claiming the credit on the appropriate tax return. A taxpayer may not claim
the job tax credit or the optional investment tax credit when claiming this credit for the same project. Companies must invest a minimum of $100,000 per project/location during the tax year in order to claim the credit.
Tier Location

for Recycling, Pollution Control or Defense Conversion
Tax Credit Credit
Activities

Tier 1

5%

8%

Tier 2

3%

5%

Tier 3 or 4

1%

3%

	

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 excess investment tax credit may be used to offset withholding as provided in the investment tax credit regulation.
The taxpayer must receive preapproval as provided in DOR’s regulation to use the excess credit against withholding.
A taxpayer that has investment tax credit carry forward for qualified investment property that was purchased or acquired
in a taxable year beginning before January 1, 2020, may request preapproval to use such investment tax credit carry
forward against withholding tax if certain requirements are met; this provision is repealed on December 31, 2024. The
taxpayer must receive preapproval as provided in DOR’s regulation to use the credit carry forward against withholding. 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 and for taxpayers to use investment tax credit carry forward against withholding
together shall not exceed $1 million per taxpayer per calendar year and $10 million for all taxpayers per calendar year.

		

This credit should be claimed on Form IT-IC and accompanied by the approved Form IT-APP. For more information,
refer to O.C.G.A. §§48-7-40.2, 40.3, and 40.4.

	

	
Page 15

TAX CREDITS (continued)
107

	

	

Optional Investment Tax Credit. Taxpayers qualifying for the investment tax credit may choose an optional investment tax credit with the following threshold criteria:
Designated Area

Minimum Investment

Tax Credit

Tier 1

$ 5 Million

10%

Tier 2

$10 Million

8%

Tier 3 or 4

$20 Million

6%

Taxpayers must apply (use Form OIT-APP) and receive approval before they claim the credit on their
returns. The credit may be claimed for 10 years, provided the qualifying property remains in service
throughout that period. A taxpayer must choose either the regular or optional investment tax credit. Once
this election is made, it is irrevoc