Georgia Corporation Income Tax Booklet

Corporation Income Tax Booklet
Corporation Income Tax General Instructions
IT 611
Rev. 12.19.23

Brian P. Kemp		
Governor

Frank M. O’Connell
Revenue Commissioner		

State of Georgia
Department of Revenue

2023
Corporation Income Tax
General Instructions

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

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FROM THE COMMISSIONER
This booklet is designed to provide information and assist
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
corporations. If you need forms, we encourage you to visit
our website at dor.georgia.gov, where 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:

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Current-year individual and corporate tax payments;
Liabilities on Department of Revenue-issued assessment
notices;
Individual and corporate estimated tax payments.

WHAT’S INSIDE?
Adjustments to Federal Income ........................................5
Allocation and Apportionment of Income ....................... 6
Computation of Income Tax.............................................. 5
Consolidated Returns........................................................4
Double-Check List and Common Errors.............. ............23
Electronic Payment............................................. ............10
Electronic Filing............................................Front Cover, 3
Estimated Income Tax.....................................................10
Extension Information......................................................11
Filing Requirements..........................................................3
Georgia Tax Center (GTC)............................................... 2
Net Worth Tax Instructions................................................7
Penalties and Interest................................................. 3-4,7
Tax Credits..................................................................12-22
Tax Exempt Organizations.................................................8
Telephone Assistance.......................................................11
Two-Dimensional Barcode Returns..................................11
What’s New........................................................................3
When and Where to File....................................................3

Georgia Tax Center
What is the Georgia Tax Center? The Georgia Tax Center (GTC) is the Department of Revenue’s secure selfservice 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

Entertainment 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
The following instructions apply to two separate taxes on
corporations. One is an income tax on taxable income.
The second is a graduated tax based on corporate net
worth. Instructions for the net worth tax begin on page 7.
Both taxes must be paid annually. Schedule 3 of the return
is designed to combine the liabilities, any penalties and
interest due, any business tax credits, and the credits for
prepayment, to result in a single balance due or overpayment.
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.
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 5 of Form
600. 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 9, Georgia
NOL Carry Forward Worksheet.
Consolidated returns: Effective for taxable years beginning
on or after January 1, 2023, a Georgia affiliated group can
elect to file a consolidated return. An affiliated group filing
a Georgia consolidated return for taxable years beginning
before January 1, 2023 has an option to either terminate
its election with respect to tax years after the period
covered by the last consolidated return due or to continue
filing a Georgia consolidated return under the previous
criteria. For additional information see O.C.G.A 48-7-21.
New Schedule 12 added to Form 600 to be completed when
submitting the Parent Consolidated Group return. Do not
complete this schedule when submitting a Subsidiary return
or when filing Form 600 on a separate company basis.
See IT-CONSOL instructions for additional information.
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/
tax-credit-summaries.
Qualified Education Expense and Qualified Rural Hospital
Expense: These credits have been extended and 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
Page 3

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.
FILING REQUIREMENTS
All corporations that own property or do business in Georgia,
or that have income from Georgia sources are required to
file a Georgia income tax return. A corporation electing
to file under the Internal Revenue Code provisions for S
Corporations having one or more stockholders who are
nonresidents of Georgia must file consent Form 600S-CA
on behalf of each nonresident. Failure to furnish a properly
executed Form 600S-CA for each nonresident stockholder
negates Georgia’s recognition of the election, requiring each
corporation to file Form 600 and pay the regular corporate tax.
WHEN AND WHERE TO FILE
The return is due on or before the 15th day of the 4th month
following the close of the taxable year. This would be April
15, 2024 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 740397, Atlanta, Georgia 30374-0397.
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 non-individual 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 14, etc.).
FREQUENTLY ASKED QUESTIONS
Frequently asked questions regarding corporations, 		
S Corporations, partnerships, and LLCs are available on our
website at https://dor.georgia.gov/help/faqs.
CLAIMS FOR REFUNDS
A claim for refund of tax paid must be made within three years
from the later date of either payment of the tax or the due date
of the income tax return (including extensions which have been
granted).
LATE PAYMENT PENALTY
A taxpayer having an extension must pay the Georgia tax by
the statutory due date of the return (excluding extensions)
using Form IT-560C. Credit for this prepayment should be
claimed on Form 600, Schedule 3, 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%) and interest will accrue
until the tax is paid. This penalty will accrue from the statutory

GENERAL INFORMATION: INCOME TAX
due date regardless of any extension for filing the return. See
page 4 for more information. 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 600.
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.
CONSOLIDATED RETURNS
Regulation 560-7-3-.13 applicable to consolidated returns
became effective for tax years beginning on or after
January 1, 2002. It substantially changed the rules for
filing consolidated returns. Visit our website at dor.georgia.
gov for more information, including instructions on proper
return preparation. For tax years beginning on or after
January 1, 2023, affiliated groups are no longer required
to request permission to file consolidated returns and may
elect to file consolidated returns on an original return.
For affiliated groups that received permission to file
consolidated returns for tax years beginning before January
1, 2023, such groups may continue to file consolidated
returns for taxable years beginning on or after January
1, 2023. The designated parent company will continue
filing Form 600 and mark the “Consolidated GA Parent
Return” chekbox. Each subsidiary member included in
the consolidated return will also continue filing Form 600
and mark the “GA Consolidated Subsidiary” checkbox
and provide the FEIN of the Georgia parent company.
For affiliated groups that wish to make a new election to file
consolidated returns for tax years beginning on or after January
1, 2023, the designated parent company must complete
Form 600 and mark the “Consolidated GA Parent Return”
checkbox to make the election. Each subsidiary member
included in the consolidated return must complete Form
600 and mark the “GA Consolidated Subsidiary” checkbox
and provide the FEIN of the Georgia parent company.
For affiliated groups that wish to terminate their consolidated
return filing, such groups must mark the “Cease Filing
Consolidated” checkbox.
For affiliated groups that wish to terminate their consolidated
filing under the Commissioner’s permission and now
want to file consolidated returns under the election, the
designated Georgia parent company must complete Form
600 and mark the “Cease Filing Consolidated” checkbox
and the “Consolidated GA Parent Return” checkbox. Each
subsidiary member included in the consolidated return will
continue to mark the “GA Consolidated Subsidiary” checkbox
and provide the FEIN of the Georgia parent company.
Schedule 12 must be completed on all Parent Consolidated
Group returns.
Consolidated Return Credit Instructions. Credits must
be calculated on a separate company basis. Georgia credit
forms must be attached to each separate company Form 600
(excluding the Parent corporation’s or designated member’s
separate company return), and Schedule 9 of each separate
company Form 600 must be completed in the year the credits are
generated. Each separate company must complete Schedule
10 of Form 600 when assigning credits. Do not complete
Line 3 of Schedule 3 of the separate company Form 600.
All credits (except those that will be sold or used against
withholding of the subsidiary, if eligible) must be assigned
Page 4

(continued)

to the consolidated group Form 600 in the year the credits
are generated (whether used or not) using Schedule 10 of
the subsidiary Form 600, and such assigned credits must be
claimed on Schedule 9 of the consolidated group Form 600
(include all information on Schedule 9 as required when credits
are assigned from subsidiaries). Please note this assignment
does not constitute an assignment of credits as defined in
O.C.G.A. Section 48-7-42 but is simply a transfer of credits
to facilitate the processing of the consolidated group return.
A schedule must be attached indicating the amount of the
credit allowed for each separate company after considering
limitations based on a percentage of state income tax liability.
Georgia credit forms for credits earned by the Parent
corporation or designated member must be attached to the
consolidated group Form 600 (not the separate company
return of the parent or designated member), and Schedule
9 of the consolidated group Form 600 must be completed in
the year the credits are generated. The Parent corporation
or designated member should include on Schedule 9 credits
earned by the Parent and credits earned and assigned
by the subsidiaries, to facilitate processing of the credits.
For credit limitation purposes, net operating loss carryovers
must be accounted for on a separate company basis. For
example, a consolidated group consists of two corporations,
Corporation A and Corporation B. In 2010, Corporation A
has a separate company apportioned taxable income of
$5,000. Corporation B has a separate company apportioned
taxable loss of $6,000. The consolidated group’s taxable
loss is $1,000. The consolidated group elects to carry
forward the loss to 2011. In 2011, Corporation B will be
treated, for credit limitation purposes, as having a $6,000
net operating loss carryover which must be applied to its
income before applying the credit percentage limitations.
AMENDED RETURNS
Georgia has no separate form for filing an amended return.
To amend a return, check the amended return box on Form
600. A copy of the Federal Form 1120X or Federal audit
adjustments must be attached. Mail the amended return to
Georgia Department of Revenue, Processing Center, P.O.
Box 740397, Atlanta, Georgia 30374-0397. Amended returns are required to be sent electronically if the original return was filed electronically.
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 page 10.
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.
Interest accruing for months beginning before July 1, 2016
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.

GENERAL INFORMATION: INCOME TAX (continued)
COMPUTATION OF INCOME TAX
Georgia income tax is 5.75% of the Georgia taxable income
shown on Schedule 1, Line 8. The amount of tax must be
entered on Schedule 1, Line 9, and on Schedule 3, Line 1A.
RELATION TO FEDERAL RETURN
The Georgia return correlates to the Federal return in most
respects (Please see page 3 for a link to the Federal Tax
Change Section on the website). The taxable income
shown on the Federal return is the basis used to calculate
Georgia taxable income with adjustments as provided by
Georgia law. The accounting period and method for the
Georgia return must be the same as the Federal return.
The Federal principles pertaining to execution of the return by an officer and the preparer also apply to Georgia
returns. A complete copy of the Federal return and all supporting schedules must be attached to the Georgia return.
Affiliated corporations that file a consolidated Federal income tax return must file separate income tax returns with
Georgia. The company will need to file separate returns
unless the checkbox for the election to file consolidated
is checked. If filing a consolidated Georgia income tax return, a separate net worth tax return must be filed by each
subsidiary. Visit our website at dor.georgia.gov for instructions concerning proper return preparation and mailing.
If a Federal audit results in a change in taxable income,
the taxpayer shall file an amended Form 600 reflecting the
changed or corrected net income within 180 days of the final
IRS determination. Electronically file or mail the return to:
Processing Center, Georgia Department of Revenue, P.O.
Box 740397, Atlanta, GA 30374-0397. Further, if the changes result in a refund, the refund must be claimed within one
year of the date the changes are submitted.
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 amounts that are required to be included in
the nonresident’s income. See Regulation 560-7-4-.05 for
more information.
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 86272 exemption does not apply to the net worth tax. 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
their Federal income tax return. However, on line 8, Schedule
Page 5

1 of Form 600 they should enter zero, and they should attach
a statement that indicates the corporation’s belief that it falls
under the protection of Public Law 86-272. Additionally, the
corporation should check the box on page 1 of the form.
ADJUSTMENTS TO FEDERAL INCOME
Federal taxable income is used as the basis of computation
to calculate Georgia taxable income. Lines 2 and 4 of
Schedule 1 provide for the modifications required by
Georgia law. The total additions to Federal income should
be indicated on Schedule 1, Line 2 and listed on Schedule 4.
Total subtractions from Federal taxable income should
be indicated on Schedule 1, Line 4 and listed in Schedule
5. The more commonly used items are listed in each of
these schedules. Additionally, adjustments due to
Federal tax changes should be reported as stated
in the instructions on the Department’s website.
A corporation must add back all captive REIT expenses directly
or indirectly paid to a related member. All such expense must
be listed as an addition to Federal taxable income even if the
taxpayer qualifies for an exception. If the 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. section 487-21.1. An authorized employee is someone legally allowed
to work in the United States.
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 taxable 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 for the taxpayer to take a subtraction on Schedule
5 for all or any portion of the addition listed on Schedule 4.
The subtraction for U.S. obligation income 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. Also see Georgia Regulation 560-7-3-.10.
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 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 interest.
A corporation which is a party to state contracts may
subtract from Federal taxable 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 the DOAS website
at: https://doas.ga.gov/state-purchasing/supplier-services.

GENERAL INFORMATION: INCOME TAX (continued)
Net Operating Losses. Corporations doing business both
within and outside Georgia that incur a loss shall compute the net
operating loss carryover deduction by allocating to Georgia
only the amount of the loss atributable to operations within
Georgia. A net operating loss sustained for the current taxable year must be carried back (if applicable) and carried
forward in the procedural sequence of taxable periods provided by Section 172 of the Internal Revenue Code of 1986,
as defined in the income tax laws of Georgia. Georgia did
not adopt the revised net operating loss provisions in the
2020 CARES Act. Therefore, for losses incurred in taxable
years ending after December 31, 2017, there is no carryback and unlimited carryforward of net operating losses and
there is a 2 year carryback for farming losses and there is a
2 year carryback and 20 year carryforward for certain insurance company net operating losses. See Form IT-552 for
more information. Also for tax years beginning on or after
January 1, 2005, Georgia law was changed to specifically
provide that Georgia follows I.R.C. Sections 108, 381, 382,
and 384.
Net operating losses (NOLs) for tax years 2018 and later
(except those for certain insurance companies) that are
applied to Georgia income cannot exceed 80% of Georgia
income before NOLs. Use Schedule 9 to compute the net
operating losses that can be used in the current year.
If you claim a net operating loss deduction, you must file a
complete statement detailing the sources for such deduction. (Attach Form IT-552 and Form 600, Schedule 9.)
Georgia Taxes Deductible. There shall be added to taxable income any taxes on, or measured by, net income
or net profits paid or accrued within the taxable year imposed by the authority of the United States or any foreign
country, or by any state except the State of Georgia, or
by any territory, county, school district, municipality, or other
tax subdivision of any state, territory, or foreign country to
the extent such taxes are deducted to determine Federal
taxable income. This includes Federal environmental tax.
When salaries and wages are reduced on the Federal return to compute Federal taxable income because of a Federal jobs tax credit, the eliminated salary and wage deduction should be listed on Schedule 5 as a subtraction from
Federal taxable income.
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 Section 174 under the 2017
Tax Cuts and Jobs Act for research and experimental expenditures paid or incurred in tax years beginning after December 31, 2021.
Please see Policy Bulletin IT 2018-1 for information regarding the exclusion for dividends from sources outside the
United States.
See Georgia Code Section 48-7-21 for additional adjustments.
ALLOCATION AND APPORTIONMENT OF INCOME
If any corporation, domestic or foreign, does business or
owns property both within and outside Georgia, Schedules
6 and 7 should be used to compute Georgia taxable income.
The tax imposed by Georgia law applies to the entire net
income as previously defined, received by every corporation, foreign or domestic, that owns property in this state,
does business in this State, or derives income from sources in this state. Every such corporation shall be deemed
to be doing business in this State if engaged within this
State in any activities or transactions for the purpose of
financial profit or gain; whether or not such corporation is
registered to do business in this State; whether or not it
maintains an office or place of business within this State;
Page 6

whether or not any such activity or transaction is connected
with interstate or foreign commerce. If the business income
of the corporation is derived in part from Georgia sources,
from property owned or business done within this 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) Gains 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 gains shall be allocated outside the State.
(3) When net income of the above classes has been separately allocated and deducted, the remainder of the net business income shall be apportioned as follows:
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 business other than the sale
of tangible personal property, receipts shall be deemed to
have been derived from business done in this State if received from customers within this State, or if the receipts 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 their 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 their 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 that 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.

GENERAL INFORMATION: NET WORTH TAX
Credit Usage and Carryover and Refundable Tax Credits
Enter the information as specified on each line of schedule 10
and 10B. With respect to Line 12, the “Tax Credits”summary
in this booklet includes which credits can be sold.
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 fourth 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 date of incorporation/qualification 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 fourth month following the beginning of the
corporation’ s taxable period.

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 which 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.
When two or more corporations file a consolidated return for income tax purposes, a separate net worth tax
return must be filed by each subsidiary. Visit our website
at dor.georgia.gov for more information, including in structions concerning proper return preparation and mailing.

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 4 is due on delinquent payments from the
due date until paid in full.

NET TAX DUE OR OVERPAYMENT
Schedule 3 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.

COMPUTATION OF TAX
The tax is graduated based on net worth (see page 8 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.

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.

Foreign corporations qualified to conduct business in Georgia are taxed based upon the portion of net worth employed
within Georgia as computed on Schedule 2, using the ratio
computed on Schedule 8. 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 the instructions on page 6.
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 8.

Page 7

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. Periods 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.

GENERAL INFORMATION: NET WORTH TAX (continued)
NET WORTH TAX TABLE
DOMESTIC AND DOMESTICATED FOREIGN CORPORATIONS
Based on net worth including issued capital stock, paid-in surplus, and earned surplus (Schedule 2, Line 4).
FOREIGN CORPORATIONS
Based on net worth including issued capital stock, paid-in surplus, and earned surplus employed within Georgia (Schedule 2, 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
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:
• Any numbers or letters are crossed out or whited out.
• Your financial institution will not allow a joint refund to be deposited to an individual account.The State of Georgia is not responsible if a financial institution rejects a direct deposit.
• 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

using Georgia Form 3605. A nonprofit corporate charter does
not constitute an exemption from income tax.

All Georgia corporations and foreign corporations that “qualify”
to do business in Georgia must file an annual registration with
the Secretary of State (SOS). Registration, including the fee, is
due between January 1 and April 1. The SOS 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. You may view the statute and
obtain an application on the Secretary of State’s website at sos.
ga.gov/. Annual registration and Certificate of Authority obligations
are separate from any filings with the Department of Revenue.

For tax years beginning on or after 1/1/2008, Form 3605 is
no longer required. The IRS determination letter allowing
exempt status for the corporation along with the letter
of incorporation will suffice. Attach these forms to the
relevant exempt organization Federal return that is filed
with Georgia.

TAX EXEMPT ORGANIZATIONS
An organization that had tax exempt status with the Internal
Revenue Service prior to January 1, 1987 is not required to
apply to the Department for a tax exempt determination letter.
Organizations, that received IRS determination letters after that
date and for a tax year beginning before 1/1/2008, must apply
Page 8

Each exempt organization must file a copy of the forms they
file with the Internal Revenue Service (Forms 990, 990-EZ,
etc.) annually. The due date for filing copies of the Federal
return with Georgia is the same as that for filing with the IRS.
Form 600-T should be mailed to the address on the form.
The mailing address for Form 3605 is Georgia Department
of Revenue, 1800 Century Center Blvd. N.E., Suite 15311,
Atlanta, GA 30345-3205. (Will no longer be required for tax
years beginning on or after 1/1/2008.) Forms 990 and 5500
should be mailed to Georgia Department of Revenue, P.O. Box
740395, Atlanta, GA 30374-0395.

GEORGIA NOL CARRY FORWARD WORKSHEET EXAMPLE
A

B

C

D

E

F

Loss Year	
Loss Amount	
Income Year
NOL Utilized	
Balance	
Remaining NOL	
					
	2009	
$
225,351	
$
176,299	
$
49,052	
12/31/2010
						
2009
$
137,047	
$
39,252 	
12/31/2011
						
2009	
$
110,167	
$
26,880 	
12/31/2012
						
2009
$
0	
$
0	
$
110,167	
12/31/2013	
						
2014
$
86,280	
$
86,280	
						
						
2015
$
116,287	
$ 116,287	
						
2016
$
18,765	
$
18,765	
						
2017
$
52,711	
$
52,711	
						
2018	
$
300,000	
$ 300,000	
						
						
						
						
						
						
						
						
						
						
						
						
						
						

M
A
X
E

E
L
P

	

$ 574,043
$ 450,000
	 2. Current Year Income / (Loss) (Schedule 1, Line 5 or Schedule 7, Line 7)						
1. NOL Carry Forward Available to Current Year

	

$ 274,043

3. NOL from Taxable Years Beginning before 1/1/2018 Applied to Current Year
4. 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)

$ 175,957

5. Total NOL applied (Add Lines 3 and 4, Enter on Schdule 1, Line 6 or Schedule 7, Line 8*)

$ 450,000

6. NOL Carry Forward Available to Next Year (Line 1 less Line 5 plus any loss amount on Line 2)

INSTRUCTIONS

$ 124,043

*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 9

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 the penalty from the 600 UET on Schedule 3, Line 9 of Form 600.
	 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 10

EXTENSION INFORMATION FOR CORPORATIONS
Georgia Code Section 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 their Federal income tax return. If the return is received within the
time extended by the Internal Revenue Service and Form 7004 is attached to the return, no late filing penalties will apply.
Georgia law prohibits granting an extension of more than six months from the due date of the return.
Failure to attach a copy of the Federal extension will result in the return being considered filed late and the assessment of
applicable penalties! If you do not need a Federal extension, use Form IT-303 to request a Georgia extension if necessary.
If an extension is 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 4 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.
Non estimated tax payments made prior to filing a completed return must be accompanied by Form IT-560C and claimed
on Form 600, Schedule 3, Line 2. An extension of time does not alter interest or penalty charges for late payment of tax.
NOTE: Check the “Extension” box on Form 600 if a Federal or Georgia extension was granted. Failure to check the
extension box will result in assessment of a late filing penalty.

TWO-DIMENSIONAL BARCODE RETURNS

The Department of Revenue has given approval to certain software companies to produce tax programs that include a twodimensional (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. Failure to mail your return to the correct address may cause processing delays.

PV-CORP PAYMENT VOUCHER

If you owe taxes, mail your return and payment with Form PV-CORP to the address on the return. If you file electronically,
mail Form PV-CORP with the payment to the address on the form. Do not use Form PV-CORP as a substitute for the form
IT-560C. Failure to properly complete and mail the PV-CORP could result in delayed or improper posting of your payment.

HELPFUL RESOURCES
Customer Contact Center ............................................................................................................ 1-877-423-6711
Secretary of State............................................................................................................................. 404-656-2817

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

103

2. Credit remaining from previous years (do not include amounts elected to be applied to withholding)
3. Company Name

TAXPAYER’S NAME

ID Number

XYZ LLC

Credit Generated
45000
this Tax Year
ID Number
67-0009876

Credit Certificate #
4. Company Name

25000
12-3456789

Credit Certificate #
								
5. Company Name ABC COMPANY

Credit Generated
3000
this Tax Year
ID Number
57-2233445

Credit Certificate #

Credit Generated
this Tax Year
ID Number

6. Company Name
Credit Certificate #

3000

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.

5000

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

14.

71000

Page 12

76000

	

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

125
ID Number

TAXPAYER’S NAME

Credit Certificate #

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

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
			

Note: A return is required to be filed electronically if the return generates, allocates, claims, utilizes, or
includes in any manner a Series 100 credit.

			
			
			
			
			

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	

103	

	

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.
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 average monthly 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:
		
		
		

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.
Page 14

TAX CREDITS (continued)
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 tha