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-.37 - Manufacturer's and Telecommunications Investment Tax Credit

Current through Rules and Regulations filed through June 27, 2024
(1)
Definitions.
As used in this
				regulation:
(a)
Manufacturing.
The term "manufacturing" means those establishments classified by the North
				American Industry Classification System (NAICS) Codes, published by the United
				States Office of Management and Budget, 2017 edition, that belong to Sectors
				31-33.
(b)
Manufacturing
				Facility.
The term "manufacturing facility" means a single facility,
				including contiguous parcels of land, improvements to such land, buildings,
				building improvements, and any machinery or equipment used in manufacturing
				described by NAICS Sectors 31-33.
(c)
Telecommunications.
The term
				"telecommunications" means those establishments primarily engaged in providing
				telecommunications services described by NAICS Codes, 2017 edition, as:
1. NAICS Code 517312 for establishments
				primarily engaged in operating and maintaining switching and transmission
				facilities to provide communications via the airwaves. Establishments in this
				industry have spectrum licenses and provide services using that spectrum, such
				as cellular phone services, paging services, wireless Internet access, and
				wireless video services;
2. NAICS
				Code 517311 for establishments primarily engaged in operating and/or providing
				access to transmission facilities and infrastructure that they own and/or lease
				for the transmission of voice, data, text, sound, and video using
				telecommunications networks. Transmission facilities may be based on a single
				technology or a combination of technologies. Establishments in this industry
				use the wired telecommunications network facilities that they operate to
				provide a variety of services, such as wired telephony services, including VoIP
				services; wired (cable) audio and video programming distribution; and wired
				broadband Internet services. By exception, establishments providing satellite
				television distribution services using facilities and infrastructure that they
				operate are included in this industry;
3. NAICS Code 517911 for establishments
				primarily engaged in purchasing access and network capacity from owners and
				operators of telecommunications networks and reselling wired and wireless
				telecommunications services (except satellite) to businesses and households.
				Establishments in this industry resell telecommunications; they do not operate
				transmission facilities and infrastructure. Mobile virtual network operators
				(MVNOs) are included in this industry; and
4. NAICS Code 517410 for establishments
				primarily engaged in providing telecommunications services to other
				establishments in the telecommunications and broadcasting industries by
				forwarding and receiving communications signals via a system of satellites or
				reselling satellite telecommunications.
5. NAICS Code 517919 for establishments
				primarily engaged in providing specialized telecommunications services, such as
				satellite tracking, communications telemetry, and radar station operation. This
				industry also includes establishments primarily engaged in providing satellite
				terminal stations and associated facilities connected with one or more
				terrestrial systems and capable of transmitting telecommunications to, and
				receiving telecommunications from, satellite systems. Establishments providing
				Internet services or voice over Internet protocol (VoIP) services via
				client-supplied telecommunications connections are also included in this
				industry.
(d)
Telecommunications Facility.
The term "telecommunications
				facility" means a single facility, including contiguous parcels of land,
				improvements to such land, buildings, building improvements, and any machinery
				or equipment used in providing the telecommunications services described by
				NAICS Codes 517312, 517311, 517911, 517410, and 517919.
(e)
Support Facility.
The term
				"support facility" refers to any establishment involved in the performance of
				activities designed primarily to support a manufacturing facility or a
				telecommunications facility, such as corporate offices, sales offices, computer
				operations facilities, warehouses, distribution centers, storage facilities,
				research and development facilities, laboratories, repair and maintenance
				facilities, telecommunications centers, regional or district administrative
				offices, and other related manufacturing or telecommunications support
				activities.
(f)
Qualified
				Investment Property.
The term "qualified investment property" means all
				property described in O.C.G.A. Sections
				 48-7-40.2(a)(2),  48-7-40.3(a)(2), and
				 48-7-40.4(a)(2) 
				 which is reasonably related or necessary to the manufacturing process or to
				providing telecommunications services. Qualified investment property also
				includes recycling machinery or equipment, recycling manufacturing facility,
				pollution control or prevention machinery or equipment, pollution control or
				prevention facility, and conversion from defense to domestic production. The
				Commissioner reserves the right to review each purchase or acquisition of
				property by a taxpayer for which the taxpayer intends to claim a
				credit.
(g)
Expansion of an
				Existing Manufacturing or Telecommunications Facility.
The term
				"expansion of an existing manufacturing or telecommunications facility" means
				the capitalized purchase or acquisition of qualified investment property by a
				taxpayer for use in a manufacturing or telecommunications facility already
				existing in this state when the purchase or acquisition of such qualified
				investment property expands the taxpayer's asset base and is directly related
				to the taxpayer's manufacturing process or to providing telecommunications
				services. It does not mean the purchase or acquisition of qualified investment
				property for the purpose of repairing existing property.
(h)
Project.
The term "project"
				means a planned undertaking involving the capitalized purchase or acquisition
				of qualified investment property for the construction of an additional
				manufacturing or telecommunications facility or the expansion of an existing
				manufacturing or telecommunications facility. A project which is a planned
				expansion of an existing manufacturing or telecommunications facility must
				result in an expansion of the taxpayer's asset base and be directly related to
				the taxpayer's manufacturing process or to providing telecommunications
				services. For purposes of qualifying for this credit in conjunction with either
				the job tax credit, the headquarters job tax credit, the quality jobs tax
				credit, or the optional investment tax credit, a taxpayer may not undertake
				more than one project at the same time within a single facility, and each
				project must be confined to a single facility. Generally it is the same project
				if it is in the same building, provided that there can be separate projects in
				the same building if the employees that will be using the equipment that is the
				subject of the investment tax credit will not be or have not been claimed or
				included in any calculations for the jobs tax credit; the headquarters jobs tax
				credit, or the quality jobs tax credit.
(i)
Pollution Control or Prevention
				Machinery or Equipment.
The term "pollution control or prevention
				machinery or equipment" means all tangible personal property, used in whole or
				in part, to reduce or eliminate air and water pollution by removing, altering,
				disposing, or storing pollutants, contaminants, waste or heat.
(j)
Pollution Control or Prevention
				Facility.
The term "pollution control or prevention facility" means any
				facility, including land, improvements to land, buildings, building
				improvements, and any pollution control or prevention machinery or equipment
				whose primary purpose is to reduce air and water pollution, provided that such
				facility is in furtherance of applicable federal, state, or local standards for
				the abatement and control of air and water pollution and
				contamination.
(k)
Conversion
				from Defense to Domestic Production.
The term "conversion from defense
				to domestic production" means the conversion of a manufacturing or
				telecommunications facility's production capabilities from those which are
				substantially dependent upon Department of Defense expenditures to those which
				have a commercial application in the private sector.
(l)
Cost of Qualified Investment
				Property.
The term "cost of qualified investment property" means the
				taxpayer's basis in the property in the taxable year in which the credit is
				created.
(m)
Rural
				county.
The term "rural county" means a county that has a population of
				less than 50,000 with 10 percent or more of such population living in poverty
				based upon the most recent, reliable, and applicable data published by the
				United States Bureau of the Census. On or before December 31 of each year, the
				Commissioner of the Department of Community Affairs shall publish a list of
				such counties.