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-.40 - Optional Investment Tax Credit

Current through Rules and Regulations filed through June 27, 2024
(1)
Definitions.
(a)
Qualified Investment Property.
The meaning of the term "qualified investment property" as used in this
				Section is identical to the meaning of "qualified investment property" in
				O.C.G.A. Sections
				 48-7-40.2,  48-7-40.3, and
				 48-7-40.4, as well as Department of Revenue Regulations Section
				 560-7-8-.37(1)(a).
(b)
Manufacturing Facility and
				Manufacturing Support Facility.
The meaning of the terms "manufacturing
				facility" and "manufacturing support facility" as used in this Section is
				identical to the meaning of "manufacturing facility" and "manufacturing support
				facility" in Department of Revenue Regulations Sections
				 560-7-8-.37(1)(c)  and
				 560-7-8-.37(1)(d).
(c)
Expansion of an Existing
				Manufacturing Facility.
The meaning of the term "expansion of an
				existing manufacturing facility" as used in this Section is identical to the
				meaning of "expansion of an existing manufacturing facility" in the Department
				of Revenue Regulations Section
				 560-7-8-.37(1)(b).
(d)
Cost of Qualified Investment
				Property.
The meaning of the term "cost of qualified investment
				property" as used in this Section is identical to the meaning of the "cost of
				qualified investment property" in the Department of Revenue Regulations Section
				 560-7-8-.37(1)(h).
(e)
First Places in Service.
The
				term "first places in service" as used in this Section means the first regular
				placement of qualified investment property in the manufacturing process of a
				manufacturing facility located in a county designated as a tier 1, tier 2, or
				tier 3 less developed area under O.C.G.A. Section
				 48-7-40.
				It does not mean merely physically placing regularly inactive or surplus
				property on the manufacturing facility site.
(f)
Remains in Service.
The term
				"remains in service" as used in this Section means the continued and regular
				use of qualified investment property in the manufacturing process in a
				manufacturing facility.
(g)
Base Year.
The term "base year" as used in this Section means the
				taxable year in which qualified investment property is first placed in service
				by the taxpayer.
(h)
Base
				Year Average.
The term "base year average" as used in this Section means
				the amount of state income tax owed by the taxpayer for the base year and each
				of the two immediately preceding taxable years (determined without regard to
				any credits) added together and divided by three.
(i)
Aggregate Credit Amount Allowed.
The term "aggregate credit amount allowed" as used in this Section means
				10 percent, 8 percent, or 6 percent of the cost of all qualified investment
				property purchased or acquired by the taxpayer and first placed in service
				during a taxable year, depending on whether the taxpayer first places such
				property in service in a tier 1, tier 2, or tier 3 county. If the taxpayer
				first places such property in service in a tier 1, tier 2, or tier 3 county,
				then the taxpayer's aggregate amount of credit allowed will be 10 percent, 8
				percent, and 6 percent, respectively.
(j)
Project.
The meaning of the
				term "project" as used in this Section is identical to the meaning of "project"
				in the Department of Revenue Regulations Section
				 560-7-8-.37(1)(b).