Compilation of Rules and Regulations of the State of Georgia › Department 560 - RULES OF DEPARTMENT OF REVENUE › Chapter 560-7 - INCOME TAX DIVISION › Subject 560-7-8 - RETURNS AND COLLECTIONS › Rule 560-7-8-.48 - Clean Energy Property and Wood Residuals Tax Credits

Current through Rules and Regulations filed through June 27, 2024
(1)
Purpose.
T7his regulation
				provides guidance concerning the implementation and administration of the tax
				credits under O.C.G.A. §
									48-7-29.14.
(2)
Coordination of Agencies.
The Georgia Environmental Finance Authority and the Department of
				Revenue have been designated as the primary agencies responsible within Georgia
				to administer the program. Additionally, the Georgia Forestry Commission is the
				state agency responsible for certifying the dollar amount of wood residuals
				transported or diverted to a renewable biomass qualified facility. The Office
				of Insurance and Safety Fire Commissioner is the state agency that administers
				the gross premium tax.
(3)
Tax Credits for the Construction, Purchase, or Lease of Clean Energy
				Property.
The tax credit under O.C.G.A. §
									48-7-29.14(b)(1) 
				 is a tax credit against Georgia income tax, or if the taxpayer is an insurance
				company, against Georgia premium tax. It shall be granted to a taxpayer for the
				construction, purchase, or lease of clean energy property that is placed into
				service in this state between July 1, 2008 and December 31, 2014.
(a) Confirmation. Prior to submitting an
				application for approval to claim the clean energy property tax credit (Form
				IT-CEP-AP), the taxpayer must complete a pre-application through the Georgia
				Environmental Finance Authority. After completing this form, the taxpayer will
				receive a confirmation. Such confirmation must be attached to Form
				IT-CEP-AP.
(b) Credit limitations.
				The amount of the clean energy property tax credit granted to a taxpayer shall
				not exceed:
1. For all types of clean energy
				property placed into service for any purpose other than single family
				residential, the credit allowed may not exceed the lesser of 35 percent of the
				cost of the clean energy property described in O.C.G.A. §
											48-7-29.14(a)(3)(A) 
				 through  O.C.G.A. §
											48-7-29.14(a)(3)(C), or the following credit amounts for any clean energy property:
(i) For solar energy equipment for solar
				electric (photovoltaic), other solar thermal electric applications, and active
				space heating as described in O.C.G.A. §
												48-7-29.14(a)(3)(A) 
				 the credit amount shall not exceed $500,000.00 per installation;
(ii) For clean energy property related to
				solar energy equipment for domestic water heating as described in O.C.G.A.
				§
												48-7-29.14(a)(3)(A), which is certified for performance by the Solar Rating Certification
				Corporation, Florida Solar Energy Center, or by a comparable entity approved by
				the Georgia Environmental Finance Authority to have met the certification of
				Solar Rating Certification Corporation OG-100 or Florida Solar Energy
				Center-GO-80 for solar thermal collectors, the credit amount shall not exceed
				$100,000.00 per installation;
(iii)
				For Energy Star certified geothermal heat pump systems as described in O.C.G.A.
				§
												48-7-29.14(a)(3)(B), the credit amount shall not exceed $100,000.00;
(iv) For a lighting retrofit project as
				described in O.C.G.A. §
												48-7-29.14(a)(3)(C)(i), the credit amount shall not exceed $0.60 per square foot of the building with a
				maximum credit amount of $100,000; and
(v) For an energy efficient building as
				described in O.C.G.A. §
												48-7-29.14(a)(3)(C)(ii), the credit amount for all energy efficient products installed during
				construction shall not exceed $1.80 per square foot of the building, with a
				maximum credit amount of $100,000.00.
(I)
				Example of credit limit in subparagraph 3(b)1. (iv) of this regulation.
				Taxpayer installs a lighting retrofit project described in O.C.G.A. §
													48-7-29.14(a)(3)(C)(i) 
				 into a 1,500 square foot building. The lighting retrofit project costs $1,000.
				Since 35% of the cost of the lighting retrofit project (equals $350) is less
				than $.60 per square foot of the building (equals $900), the taxpayer would
				request a credit amount of $350 on Form IT-CEP-AP for preapproval.
(II) Example of the credit limit in
				subparagraph 3(b)1. (v) of this regulation. Taxpayer installs energy efficient
				products in an energy efficient building, which is 15,000 square feet, as
				described in O.C.G.A. §
													48-7-29.14(a)(3)(C)(ii).
				The cost of all energy efficient products installed in the building is $12,000.
				Since 35% of the cost of all energy efficient products (equals $4,200) is less
				than $1.80 per square foot of the building (equals $27,000), the taxpayer would
				request a credit amount of $4,200 on Form IT-CEP-AP for preapproval.
2. For wind equipment
				as described in O.C.G.A. §
											48-7-29.14(a)(3)(D) 
				 the credit amount shall not exceed $500,000.00 per installation.
(i) For biomass equipment as described in
				O.C.G.A. §
												48-7-29.14(a)(3)(E) 
				 the credit amount shall not exceed $500,000.00 per installation.
3. The following credit limits
				apply to clean energy property placed in service for single family residential
				purposes, the lesser of 35 percent of the cost or:
(i) For clean energy property related to
				solar energy equipment for domestic water heating as described in O.C.G.A.
				§
												48-7-29.14(a)(3)(A), which is certified for performance by the Solar Rating Certification
				Corporation, Florida Solar Energy Center, or by a comparable entity approved by
				the Georgia Environmental Finance Authority to have met the certification of
				Solar Rating Certification Corporation OG-100 or Florida Solar Energy
				Center-GO-80 for solar thermal collectors, Solar Rating Certification
				Corporation certification OG-300 or Florida Solar Energy Center-GP-5-80 for
				solar thermal residential systems, or both, the credit amount shall not exceed
				$2,500.00 per dwelling unit;
(ii)
				For clean energy property related to solar energy equipment for solar electric
				(photovoltaic), other solar thermal electric applications, and active space
				heating as described in O.C.G.A. §
												48-7-29.14(a)(3)(A), the credit amount shall not exceed $10,500.00 per dwelling unit; and
(iii) For Energy Star certified geothermal
				heat pump systems described in O.C.G.A. §
												48-7-29.14(a)(3)(B), the credit amount shall not exceed $2,000.00 per installation.
(c) Credit amount. Any
				credit allowed under O.C.G.A. §
										48-7-29.14(b)(1) 
				 for calendar year 2012, 2013, or 2014 must be taken in four equal installments
				over four successive taxable years beginning with the taxable year in which the
				credit is allowed.
(d) Carry
				forward. Any unused credit or unused installment credit amount in a taxable
				year may be carried forward for five years from the close of the taxable year
				in which the installation of the clean energy property occurred.