Georgia Partnership Income Tax Booklet

Partnership Income Tax Booklet
IT-711 Partnership Income Tax General Instructions
IT-711
rev 12.19.23

Brian P. Kemp											

Frank M. O’Connell

Governor											Revenue Commissioner

State of Georgia
Department of Revenue

2023
Partnership Income Tax
General Instructions

File Form 700 electronically. Visit our website dor.georgia.gov for more information.

CREDIT CARD PAYMENTS

ELECTRONIC FILING

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FROM THE COMMISSIONER
This booklet is designed to provide information and
assist partnerships in filing their Georgia partnership
tax returns. I recommend you review the Department’s
website if there are any changes affecting your return.
This booklet contains the instructions required by most
partnerships. If you need forms, we encourage you
to visit our website at dor.georgia.gov. There you can
download forms and always 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-billrights) 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..............................................3
Amended Returns...................................................................2
Computation of Income for Georgia Purposes........................4
Corporate Partners of Partnerships........................................4
Federal Audit...........................................................................2
Filing Requirements................................................................2
Georgia Tax Center..................................................................1
Guaranteed Payments............................................................5
Income Apportionment and Allocation.....................................3
Income to Partners..................................................................4
Net Worth Tax..........................................................................4
Partnerships with Nonresident Partners..................................4
Tax Credits.........................................................................9-19
Telephone Assistance..............................................................5
What’s New.............................................................................2
When and Where to File..........................................................2

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 and 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.
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

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

GTC Features
•

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

•

Request:
o

Refunds

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
For a complete list of features visit GTC at https://gtc.dor.ga.gov
Page 1

GENERAL INFORMATION
WHAT’S NEW

ELECTRONIC FILING REQUIREMENTS

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 700. 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, GA NOL Carry Forward Worksheet.

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 tax credit (see page 9, etc.).

ELECTION TO PAY AT THE ENTITY LEVEL

A partnership may annually make an irrevocable election to pay income
tax at the entity level instead of passing the income tax liability through
to the partners. To make the election, the partnership must check the
box, “Partnership elects to pay the tax at the entity level”, on the Form
700 by the due date or extended due date of the Form 700.

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 The election to pay tax at the entity level is binding on all partners,
paid or incurred for tax years beginning on or after January 1, 2022. including nonresident partners. A composite return is not required
when the election is made. Any allocable shares of the electing partNew Tax Credits: Qualified Foster Child Donation and Qualified Law nership’s income or loss included on the partners’ Federal adjusted
Enforcement Donation credit. See Tax Summary for more details, https:// gross income must be adjusted on the partners’ own Georgia income
dor.georgia.gov/tax-credit-summaries.
tax returns. The partners are not eligible to claim a credit for taxes
Historic Rehabilitation Tax Credits: These credits have been extended paid to Georgia with respect to income taxed at the partnership level.
and revised, for more information, see Tax Credits section in this booklet
Tax attributes, including but not limited to credits and net operating
or https://dor.georgia.gov/tax-credit-summaries.
losses, do not pass through to the partners but remain with the electQualified Education Expense and Qualified Rural Hospital Expense: ing partnership regardless of whether an election is made for subThese credits have been extended and revised. For more information, sequent taxable years. However, an electing partnership may make
see Tax Credits section in this booklet or: https://dor.georgia.gov/ an irrevocable election to pass through all or part of any credit, that
is generated within the applicable statute of limitation period for the
tax-credit-summaries.
partnership, to its partners for the taxable year the credit is generated.
New Facilities Job Credit Force Majeure Update to Include Disease The election to pass credits through to the partners is not available for
Pandemic: For projects certified after July 1, 2023 for the new facilities job the Qualified Education Expense Tax Credit, the Qualified Education
credit but fail to meet the job or payroll maintenance requirements during Donation Credit, and the Qualified Rural Hospital Expense Tax Credit.
the recapture period, force majeure relief from these maintenance requireThe electing partnership must make estimated tax payments in the
ments now includes pandemics. A pandemic is defined as an outbreak of
same manner as a C Corporation. Estimated payments made by the
disease that occurs over a wide geographic area, affects a significant propartners are not eligible to be transferred to the electing partnership
portion of the population, causes a substantial and unforeseeable threat
but can be used to compute the penalty on Form 600-UET as if the
to the public health, and materially impacts the ability to conduct business.
electing partnership had made such payments. See Code Section
Quality Jobs Tax Credit: This credit has been revised, for more infor- 48-7-23 and Regulation 560-7-3-.03 for more information.
mation, see Tax Credits section in this booklet or: https://dor.georgia.
FEDERAL AUDIT
gov/tax-credit-summaries.
Georgia House Bill 849 was enacted in 2017. This bill modifies Code
Section 48-7-53 and provides for the reporting of Federal partnership
Qualified Education Donation Credit:This credit has been extended. adjustments effective for taxable years beginning on or after January
For more information, see Tax Credits Section in this booklet or https:// 1, 2018. With a Federal partnership adjustment the partnership
dor.georgia.gov/tax-credit-summaries.
is required to file an amended Georgia return (please check the
“Amended due to IRS Audit” box on Page 1 of the Form 700). With a
FEDERAL TAX CHANGES/CONFORMITY, NEW LEGISLA- Federal partnership adjustment (and also for an amended return filed
by the partnership), a partnership may elect to pay the tax due on
TION, AND OTHER POLICY INFORMATION
behalf of its partners by checking the box on page 1 of Form 700. If
Federal Tax Changes/Conformity with Federal Changes, New Legislation, the partnership makes this election, a schedule should be attached to
and other Policy Information are available via the Department’s website the Form 700 which provides the details of the income reported for the
dor.georgia.gov/taxes/tax-rules-and-policies.
partners and the total income should be entered on page 1 of Form 700.
The bill also provides for Georgia partnership audit adjustments
FILING REQUIREMENTS
and related appeals effective for taxable years beginning on or after
A partnership, limited liability company, syndicate, group, pool, January 1, 2017 and earlier if the Department and the partnership
joint venture and unincorporated organization which is engaged agree. For a Georgia partnership audit, a partnership may elect to pay
in business or owns property located in Georgia or has members the tax due on behalf of its partners by checking the box on Line 2 of
domiciled in Georgia or has income from Georgia sources, and Schedule 1. This election can be made on an original or amended
which is required to file a Federal Income Tax return on Form return filed before the audit starts or at the time of the audit. If the
1065, is required to file a Georgia Income Tax return on Form 700. election is made, the partnership will not file an amended return,
instead the Department will issue a notice to the partnership to facilitate
WHEN AND WHERE TO FILE
the collection of the tax. If the election is not made, the partnership
Form 700 must be filed on or before the 15th day of the third month and its direct and indirect partners must file amended returns.
following the close of the taxable year. This would be March 15th if filing
AMENDED RETURNS
on a calendar year basis. If the due date falls on a weekend or holiday,
the return is due on the next day that is not a weekend or holiday. If a partnership becomes aware of changes after filing its return, it
Paper returns should be mailed to the Georgia Department of Revenue, should file an amended Form 700. Check the Amended return box
Processing Center, P.O. Box 740315, Atlanta, Georgia 30374-0315. on Form 700 and submit an amended K-1 for each partner and a
Page 2

GENERAL INFORMATION
complete copy of the amended Federal partnership return, including
schedules, if applicable.

STATE PARTNERSHIP REPRESENTATIVE

Indicate on page 1 of Form 700 the State Partnership Representative if
different than the Federal Partnership Representative. See Regulation
560-7-3-.11 for more information.

RELATION TO THE FEDERAL RETURN

The Georgia return correlates to the Federal return in most respects (see
information below about Federal tax changes). The accounting period and
method used 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 included with the Georgia return. Otherwise, your return will be
deemed incomplete.

ADJUSTMENTS TO FEDERAL INCOME

(Schedules 5 and 6)
To determine the total income for Georgia purposes, certain adjustments
as provided by Georgia law are included in the computations for Schedules
5 and 6. The total additions to Federal Income should be placed on Line
9 of Schedule 8, and listed in Schedule 5. The total subtractions from
Federal income should be shown on Line 11 of Schedule 8, and listed on
Schedule 6. The more commonly used items are listed in each schedule.
A partnership 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 for the taxpayer to take a subtraction on
Schedule 6 for all or any portion of the addition listed on Schedule 5.
A partnership 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 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: https://dor.georgia.
gov/taxes/tax-rules-and-policies.
U.S. obligation income that is 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.
Where salaries and wages are reduced in computing Federal
taxable income because a Federal jobs tax credit has been taken, which
required the elimination of the salary and wages deduction, the eliminated
salary and wage deduction shall be subtracted from Georgia taxable
income. Regulation 560-7-7-.05 defines the term “federal jobs tax credit”.
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. A list of certified minority subcontractors is maintained by
the Commissioner of the Department of Administrative Services for the
Revenue Department and general public. To register your business as a
minority subcontractor or to view the list, call 404-656-6315 or visit doas.
ga.gov/state-purchasing/supplier-services.
A partnership 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 partnership may also 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.
See Georgia Code Section 48-7-27 for additional adjustments.

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.

INCOME APPORTIONMENT AND ALLOCATION

(Schedules 7 and 2)
If any Partnership, domestic or foreign, is doing business or owns
property either within and/or outside of Georgia, the average ratio as
computed in Schedule 7 should be used to compute Georgia Net Income
in Schedule 2. If the business income of the partnership is derived
from Georgia sources, from property owned or business done within
this State, and in part from property owned or business done outside
this State, the tax shall be imposed only on that portion of the business
income which is reasonably attributable to Georgia sources and property
owned and business done within this 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 partnership’s situs 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.
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 partnership, nor
for sale in the regular course of business, shall be allocated to Georgia
if the property sold is real or tangible personal property situated in this
State, or intangible property having an actual situs or a business situs
within this State. Otherwise the gains shall not be allocated to this State.
(3) Net income of the above classes having been separately allocated
and deducted, the remainder of net business income shall be
apportioned as follows:

ONE FACTOR FORMULA

(a) Gross Receipts Formula. The gross receipts factor is the ratio of
gross receipts from business done within this State to total gross receipts
from business done everywhere. Receipts derived from the sale of
tangible personal property shall be deemed to have been derived from
business done in Georgia if they were received from products shipped
to customers in this State or products delivered within this State to

Page 3

GENERAL INFORMATION (continued)
customers.
When receipts are derived from business other than the sale of
tangible personal property, receipts shall be deemed to have been
derived in Georgia 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 Rules and Regulation 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 taxpayer’s regular trade or business.
(b) Apportionment of Income; Business Joint Venture and
Business Partnerships. A corporation or partnership which 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 or
partnership gross receipts values in its own apportionment formula.

COMPUTATION OF TOTAL INCOME FOR GEORGIA
PURPOSES (Schedule 8)

Schedule 7 reflects flow-through income from the Federal return which
is taxable to the individual partners. A resident partner is required to
report his full share of partnership income or loss. A nonresident partpartner is required to report only his share of Georgia-apportioned and
Georgia-allocated income on such partner’s return. Payments made
to a partner for services rendered or interest on capital contributions
(guaranteed payments) are not deductible when computing the
partnership’s net income. Schedule 8 is similar to the Federal Schedule
K. Enter the total amounts from each category on Schedule 8 where
applicable.

GA Net Operating Loss (NOL) Carry Forward Worksheet
(Schedule 9)

This worksheet should be used to calculate the NOL carryovers. Select
the type of loss for the current year. The types of losses are as follows:
Normal Loss: A Normal loss can only be carried forward until exhausted.
Insurance loss (2) year: An Insurance loss can be carried back 2
years and carried forward for 20 years or until exhausted.
Casualty Loss: A loss resulting from any sudden, unexpected, or
unusual event such as a natural disaster or civil disturbance in Georgia.
A casualty loss can be carried forward until exhausted.
Farm Loss (2) Year: A Farm loss can be carried back 2 years. A Farm
loss can be carried forward indefinitely or until exhausted.
For columns A-F see the instructions on Schedule 9.

INCOME TO PARTNERS (Schedule 4)

This schedule provides space to show identifying information and
income distributable to the individual partners.
Enter for each partner: 1. Name; 2. Street and Number; 3. City,
State, Zip Code and Country if foreign; 4. Social Security or Federal
Identification Number; 5. Profit (Loss) sharing percentage (Enter
the ending percentage that is listed on the Federal K-1); 6. Georgia
Source Income. If the partnership has more than 5 partners, attach
a separate schedule for the additional partners in the same format.
Total Georgia source income may differ from total net income because
some of the partnership income (e.g., guaranteed payments) may
not be based on the profit sharing ratio, or the partner is a Georgia
resident. See example on page 5.

CREDIT USAGE AND CARRYOVER (Schedule 10)

Credits that are eligible to be sold only include series 100 tax
credits that are eligible to be directly transferred or sold pursuant
to the applicable statute and that have not been previously passed

through and made available to the partners of the partnership or
tiered partnership. These credits may be entered on Schedule
3, Line 3. Series 100 tax credits are any tax credit designated
by the Department with a tax credit code from 100 through 199.
Enter the information as specified on each line of Schedule
10. With respect to Line 10, the “Tax Credits” summary in this
booklet includes information regarding which credits can be sold.

Computation of Tax Due or Overpayment (Schedule 3)

If you have an overpayment and an amount due for interest, Form
600UET and/or other penalties the following should be applied:
If Line 6 is greater than Line 7, Line 8 and Line 9 combined, subtract
Lines 7, 8 and 9 from Line 6 and enter the overpayment on Line 12.
Enter the amount of overpayment to be credited to estimated tax on
Line 11. Otherwise, add Lines 7, 8 and 9, and then subtract Line 6.
Enter this amount on Line 10.

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.

LIMITED LIABILITY COMPANY

Each limited liability company and foreign limited liability company
shall be classified as a partnership for Georgia income tax purposes
unless classified otherwise for Federal income tax purposes, in
which case the limited liability company or foreign limited liability
company shall be classified for Georgia income tax purposes in the
same manner as it is classified for Federal income tax purposes.
	

		

NET WORTH TAX

Partnerships are not subject to net worth tax.

PARTNERSHIP WITH NONRESIDENT PARTNERS

Nonresident partners of partnerships doing business both within
and outside Georgia shall compute their proportionate part of the
partnership’s allocated and apportioned income from the schedules
on Form 700. Georgia net income computed on Line 7 of Schedule
2 should be multiplied by the percentage of ownership. This
amount is further adjusted by the partner’s share of the separately
stated items mentioned on the Department’s website. Please
see page 2 for a link to the Federal Tax Changes section on the
website and page 3 for the Adjustments to Federal Income section.
A partnership that owns property or does business within this State is
required by O.C.G.A. § 48-7-129 to withhold on the annual partner’s
share of taxable income sourced to Georgia. The withholding tax
rate is 4%. Withholding is not required if the annual partner’s share
of taxable income sourced to Georgia is less than $1,000. Also
there are various exemptions from nonresident withholding. See
Regulation 560-7-8-.34 and Form NRW-Exemption. As an alternative
to withholding, the partnership may file a composite return (Form ITCR) for its nonresident partners. Permission is not required to file a
composite return. Please check the Composite Return Filed box on
page 1 of Form 700.
Subsection (c) of O.C.G.A. § 48-7-24 provides an exemption
from Georgia income tax for a nonresident partner who receives
income from a partnership which derives income exclusively
from buying, selling, dealing in, and holding securities on
its own behalf and not as a broker. Accordingly, withholding
under O.C.G.A. § 48-7-129 would not apply in this situation.
Note: This exemption does not apply to a family limited partnership
or similar nontaxable entity, the majority interest of which is owned
by one or more natural or naturalized citizens related to each other
within the fourth degree of reckoning according to the laws of
descent and distribution. Also, this exemption does not apply to a
partner that participates in the management of the partnership or
that is engaged in a unitary business with another person (including
entities) that participates in the management of the partnership.

Page 4

GENERAL INFORMATION (continued)
GUARANTEED PAYMENT EXAMPLE

TELEPHONE ASSISTANCE

The following example illustrates how guaranteed payments should
be treated when there is a nonresident partner: There are two partners
in the partnership. Partner One is a resident of Georgia and owns
25% of the partnership. Partner One receives a guaranteed payment
of $10. Partner Two is a nonresident of Georgia and owns 75% of
the partnership. Partner Two receives a guaranteed payment of $40.
The profit and loss sharing ratio is the same as the ownership percentage. The Georgia apportionment ratio on Line 2, Schedule 7, of
Form 700 is 50%.

Customer Contact Center........................................1-877-423-6711

Ordinary income reported on
Line 1, Schedule 8, of Form 700............................................$100
Guaranteed payment reported on
	Line 5, Schedule 8, of Form 700............................................$50
Total income for Georgia purposes,
Line 12, Schedule 8, of Form 700..........................................$150

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:

Partner One (resident) is required to report $35 on the Georgia return. The entire $10 guaranteed payment plus their share of the ordinary income of the partnership, which is $25 ($100 ordinary income
placed on Line 1, Schedule 8, of Form 700 multiplied by the ownership percentage of 25%). Partner Two (nonresident) is required to
report $58 on the Georgia return. The Georgia portion of the guaranteed payment is $20 ($40 guaranteed payment multiplied by the
Georgia ratio of 50%) plus the share of the Georgia portion of the
ordinary income of the partnership, which is $38 ($100 ordinary income placed on Line 1, Schedule 8 of Form 700 multiplied by their
ownership percentage of 75% multiplied by the Georgia ratio of 50%).

FREQUENTLY ASKED QUESTIONS

Answers to frequently asked questions regarding corporations, S
Corporations, partnerships, LLC’s, and nonresident withholding are
available on our website at https://dor.georgia.gov/help/faqs.

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 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).

Page 5

GEORGIA NOL CARRY FORWARD WORKSHEET EXAMPLE
Current Year NOL Type:

A

Normal Loss

B

Farm Loss

C

Insurance Loss

D

E

Income Year

NOL Utilized

12/31/2015

$ 49,052

$ 176,299

2014

12/31/2020

$ 39,252

$ 137,047

2014

12/31/2021

$ 26,880

$ 110,167

Loss Year
2014

Loss Amount
$ 225,351

Balance

F

Remaining NOL

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

E

A
X

P
M

E
L

1. NOL Carry Forward Available to Current Year

$ 684,210

2. Current Year Income / (Loss) (Schedule 1, Line 5 or Schedule 7, Line 7)

$ 450,000

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 6

ESTIMATED INCOME TAX INSTRUCTIONS
PARTNERSHIPS THAT MUST FILE ESTIMATED TAX
The tax rate is 5.75%
A partnership that elects to pay tax at the pass-through entity level must make estimated tax payments in the same manner as a corporation
and using the same form. 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 partnership 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 3
Line 8 of Form 700. For more information, please visit https://dor.georgia.gov/hb-149-pass-through-entity-tax-faq.

	 The following percentages of estimated tax shall
be paid on or before the fifteenth day of the:

4th MONTH
OF THE
TAXABLE
YEAR

Before the first day of the fourth month of the taxable year. 	

6th MONTH
OF THE
TAXABLE
YEAR

25% 	

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

9th MONTH
OF THE
TAXABLE
YEAR

12th MONTH
OF THE
TAXABLE
YEAR

25% 	

25% 	

25%

33 1/3% 	

33 1/3% 	

33 1/3%

50% 	

50%

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 partnership 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), taxpayers with quarterly estimate 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 income and estimated taxes using Georgia Tax Center (GTC). This integrated tax system gives 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 Customer Contact Center at 1-877-423-6711.

EXTENSION INFORMATION FOR PARTNERSHIPS
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 thereturn 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 700, 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 700 if a Federal or Georgia extension was granted. Failure to check the
extension box will result in assessment of a late filing penalty.
Page 7

THIS PAGE INTENTIONALLY LEFT BLANK

Page 8

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 should 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. Company Name TAXPAYER’S NAME

ID Number

Credit Certificate #

Credit Generated

3. Company Name XYZ LLC

ID Number

Credit Certificate #

Credit Generated

4. Company Name ABC COMPANY

ID Number

Credit Certificate #

Credit Generated

5. Company Name

ID Number

Credit Certificate #

Credit Generated

6. Company Name

ID Number

Credit Certificate #
7. Company Name
Credit Certificate #
8. Company Name
Credit Certificate #

12-3456789
45,000
67-0009876
3,000
57-2233445
3,000

Credit Generated
ID Number
Credit Generated
ID Number
Credit Generated

9. Total available credit for this tax year (sum of Lines 2 through 8)
10. Enter the amount of credit sold (only certain credits can be sold;see instructions)
11. Total allocated to owners on Schedule 11
12. Credit used on Form IT-CR
13. Credits eligible to be sold that were not sold or allocated to partners from previous
years (do not include amounts elected to be applied to withholding)
14. Credits used on Schedule 3, Line 3
15. Potential carryover to next tax year (Line 9 less Lines 10, 11, 12 14 plus Line 13)

Page 9

9.
10.
11.
12.
13.
14.
15.

51,000
51,000

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 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

122

2. Company Name TAXPAYER’S NAME

ID Number

Credit Certificate # 0112233445

12-3456789

Credit Generated

3. Company Name

10,000

ID Number

Credit Certificate #

Credit Generated

4. Company Name

ID Number

Credit Certificate #

Credit Generated

5. Company Name

ID Number

Credit Certificate #

Credit Generated

6. Company Name

ID Number

Credit Certificate #

Credit Generated

7. Company Name

ID Number

Credit Certificate #

Credit Generated

8. Company Name

ID Number

Credit Certificate #

Credit Generated

9. Total available credit for this tax year (sum of Lines 2 through 8)
10. Enter the amount of credit sold (only certain credits can be sold;see instructions)
11. Total allocated to owners on Schedule 11
12. Credit used on Form IT-CR
13. Credits eligible to be sold that were not sold or allocated to partners from previous
years (do not include amounts elected to be applied to withholding)
14. Credits used on Schedule 3, Line 3
15. Potential carryover to next tax year (Line 9 less Lines 10, 11, 12 14 plus Line 13)

Page 10

9.
10.
11.
12.
13.
14.
15.

10,000
10,000

0

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.
Note: The Timber Tax Credit (145) is not refundable directly to a partnership. Instead it is refundable to
the owners of a partnership (if not purchased).

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 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.
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.
Page 11

TAX CREDITS (continued)
*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

		

Tax Credit

Credit for Recycling, Pollution Control or Defense Conversion 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.
	
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 irrevocable. The optional investment tax credit is
calculated based upon a three-year tax liability average. The annual credits are then determined using this base year average.
The credit available to the taxpayer in any given year is the lesser of the following amounts:
		 (1) 90% of the excess of the tax of the applicable year determined without regard to any credits over the base
year average; or
Page 12

TAX CREDITS (continued)
		

(2)	 The excess of the aggregate amount of the credit allowed over the sum of the amounts of credit already
used in the years following the base year.
The credit must be claimed on Form IT-OIC. For more information, refer to O.C.G.A. §§48-7-40.7, 40.8, and 40.9.

	
109	

Low Income Housing Credit. This is a credit against Georgia income taxes for taxpayers owning developments receiving
the Federal Low Income Housing Tax Credit that are placed in service on or after January 1, 2001. Credit must be claimed on
Form IT-HC and accompanied with Federal Form K-1 from the providing entity and a schedule of the building allocation. For
more information, refer to O.C.G.A. §48-7-29.6.

111 	

Business Enterprise Vehicle Credit. This credit is for a business enterprise for the purchase of a motor vehicle used exclusively
to provide transportation for employees. In order to qualify, a business enterprise must certify that each vehicle carries an average daily ridership of not less than four employees for an entire taxable year. This credit cannot be claimed if the low and zero
emission vehicle credit was claimed at the time the vehicle was purchased. For more information, refer to O.C.G.A. §48-7-40.22.

112	 	

Research Tax Credit. A tax credit is allowed for research expenses for research conducted within Georgia for any business or headquarters of any such business engaged in manufacturing, warehousing, and distribution, processing, telecommunications, tourism, broadcasting or research and development industries. The credit shall be 10% of the additional
research expense over the “base amount,” provided that the business enterprise for the same taxable year claims and
is allowed a research credit under Section 41 of the Internal Revenue Code of 1986. For tax years beginning on or after
January 1, 2009, the base amount calculation is based on Georgia gross receipts instead of Georgia taxable net income.
(Note that for tax years beginning before January 1, 2009, the base amount must contain positive Georgia taxable net income for all years.) The credit may not exceed 50% of the business’ Georgia net income tax liability after all other credits
have been applied in any one year. Any unused credit may be carried forward 10 years. Excess research tax credit earned
in taxable years beginning on or after January 1, 2012, may be used to offset withholding as provided in the research
tax credit regulation. This credit should be claimed on Form IT-RD. For more information, refer to O.C.G.A. §48-7-40.12.

113	 	

Headquarters Tax Credit. Companies establishing their headquarters or relocating their headquarters to Georgia prior to
January 1, 2009 may be entitled to a tax credit if the following criteria are met: 1) At least fifty (50) headquarters jobs are
created; and 2) within one year of the first hire, $1 million is spent in construction, renovation, leasing, or other cost related
to such establishment or reallocation. Headquarters is defined as the principal central administrative office of a company or
a subsidiary of the company. The credit is available for establishing new full-time jobs. To qualify, each job must pay a salary which is a stated percentage of the average county wage where the job is located: Tier 1 counties at least 100%; Tier 2
counties at least 105%; Tier 3 counties at least 110%; and Tier 4 counties at least 115%. The company has the ability to claim
the credit in years one through five for jobs created in year one and may continue to claim newly created jobs through year
seven and claim the credit on each of those jobs for five years. The credit is equal to $2,500 annually per new full-time job
meeting the wage requirement or $5,000 if the average wage of all new qualifying fulltime jobs is 200% or more of the average
county wage where new jobs are located. The credit may be used to offset 100 percent of the taxpayers Georgia income tax
liability in the taxable year. Where the amount of such credit exceeds the taxpayer’s tax liability in a taxable year, the excess
may be taken as a credit against such taxpayer’s quarterly or monthly withholding tax. To claim the credit against withholding, a business must file Form IT-WH as provided in the headquarters tax credit regulation or as instructed by the Commissioner. This credit should be applied for and claimed on Form IT-HQ. For more information, refer to O.C.G.A. §48-7-40.17.

114	

Port Activity Tax Credit (Use 114J for Port Activity Job Tax Credit and 114M for Port Activity Investment Tax Credit).	
For taxable years beginning before January 1, 2010, businesses or the headquarters of any such businesses engaged in manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism, or research and development
that have increased shipments out of Georgia ports during the previous 12-month period by more than 10% over their 1997
base year port traffic, or by more than 10% over 75 net tons five containers or ten 20- foot equivalent units (TEU’s) during the
previous 12-month period are qualified for increased job tax credits or investment tax credits. NOTE: Base year port traffic must
be at least 75 net tons, five containers, or 10 TEU’s. If not, the percentage increase in port traffic will be calculated using 75 net
tons, five containers, or 10 TEU’s as the base. Companies must meet Business Expansion and Support Act (BEST) criteria for
the county in which they are located. The tax credit amounts are as follows for all Tiers: An additional job tax credit of $1,250
per job; investment tax credit of 5%; or optional investment tax credit of 10%. Companies that create 400 or more new jobs,
invest $20 million or more in new and expanded facilities, and increase their port traffic by more than 20% above their base
year port traffic may take both job tax credits and investment tax credits. The credit is claimed by filing the appropriate form
for the applicable credit (job tax: Form IT-CA; investment tax: Form IT-IC or optional: Form IT-OIC) with the tax return and providing a statement with port numbers to verify the increase in port traffic. For more information, refer to O.C.G.A. §48-7-40.15.
For tax years beginning on or after January 1, 2010, the following changes apply:
1. “Base year port traffic” means the amount of imports and exports during the second preceding 12- month period. For
example, if the taxpayer is trying to claim the credit for 2010, they would compare 2009 to 2008 and if the increase is more
than 10% they would qualify. NOTE: Base year port traffic must be at least 75 net tons, five containers, or 10 TEU’s. If
not, the percentage increase in port traffic will be calculated using 75 net tons, five containers, or 10 TEU’s as the base.
2. “Port traffic” means the amount of imports and exports.

	

	
115 	

Bank Tax Credit. All financial institutions that conduct business or own property in Georgia are required to file a Georgia Financial
Institutions Business Occupation Tax Return, Form 900. Effective on or after January 1, 2001, a depository financial institution with a
Page 13

TAX CREDITS (continued)

Sub S election can pass through the credit to its shareholders on a pro rata basis. For more information, refer to O.C.G.A. §48-7-29.7.
118 	

New Facilities Jobs Credit. For business enterprises who first qualified in a taxable year beginning before January 1, 2009,
$450 million in qualified investment property must be purchased for the project within a six-year period. The manufacturer
must also create at a minimum 1,800 new jobs within a six-year period. For business enterprises who first qualify in a taxable
year beginning on or after January 1, 2009; the definition of business enterprise is any enterprise or organization which is
registered and authorized to use the Federal employment verification system known as “E-Verify” or any successor Federal
employment verification system and is engaged in or carrying on any business activities within this state. Retail businesses
are not included in the definition of a business enterprise. The business enterprise must meet the job creation requirement
and either the qualified investment requirement, $450 million qualified investment property, or the payroll requirement, $150
million in total annual of Georgia W-2 reported payroll within the six-year period. For tax years beginning on or after January
1, 2012, the job creation requirement is extended if certain amounts of qualified investment property are purchased. After an
affirmative review of the application by a panel, the business enterprise is rewarded with the new facilities job tax credit. The
credit is $5,250 per job created. The credit offsets income tax liability and any excess credit may be used to offset withholding taxes. There is a 10-year carryforward of any unused tax credit. For more information, refer to O.C.G.A. §48-7-40.24.

119	

Electric Vehicle Charger Credit. This is a credit for a business enterprise for the purchase of an electric vehicle charger located in the
State of Georgia. The credit is the lesser of 10% of the cost of the charger or $2,500. For more information, refer to O.C.G.A. § 48-7-40.16.

120	

New Manufacturing Facilities Property Credit. This is an incentive for a manufacturer who has operated a manufacturing facility
in this state for at least 3 years and who spends $800 million on a new manufacturing facility in this state. There is also the requirement that the number of full-time employees equal or exceed 1,800. However, these jobs do not have to be new jobs to Georgia. An
application is filed which a panel must approve. The benefit awarded to a manufacturer is a credit against taxes equal to 6 percent of
the cost of all qualified investment property purchased or acquired. The total credit allowed is $50 million. The credit offsets income
tax liability and any excess may be used to offset withholding taxes. There is a 15-year carry forward of any unused tax credit. There
are different provisions for certain high-impact aerospace defense projects. For more information, refer to O.C.G.A. §48-7-40.25.

121 	

Historic Rehabilitation Credit for Historic Homes. For tax years beginning January 1, 2022 and later, this Credit Code no
longer applies. Taxpayers seeking to utilize Historic Rehabilitation Credits should refer