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Alpha-Mail 
The Tax Professional's Guide to Georgia Tax Credits, Courtesy of Alpharesults
Vol. II No. 4 April 2008
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Hello!
Welcome to Alpha-Mail, the monthly newsletter about Georgia tax credits for Georgia tax
professionals.
Well, have you recovered yet? In this month's issue, learn how you could help your clients save gas, but it might not be easy! Also, see our 2008 Legislative Update on state job tax credits. And thank you for reading Alpha-Mail -- please click reply to tell us what you think.
All the best, 
Dale Stapler Jim Tinsley
Alpharesults, LLC
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There's No Such Thing as Free Gas?
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Gas prices keep going up, and traffic is always getting worse. The Telework Tax Credit can help, and it applies to any company in Georgia. It provides an incentive for companies to allow their employees to work from home and not have to drive to the office every day. I get lots of calls from CPAs asking if their clients should pursue the credit.
But before you get TOO excited, there's a catch. I quickly found out that this new tax credit has pretty complex procedures and processing requirements.
Now according to the Clean Air Campaign organization, the tax credit was "well received" by companies in its first year in 2007. There were 138 companies that applied, and 135 were approved by DOR. All of the approved companies received a pro rata amount of the $2 million allocated for the entire state.
So these numbers should increase over the next few years as companies become more aware of the opportunities, right? Well, no. Under current law, 2008 is the last year to apply for the credit. The application deadline is October 31, 2008.
Should your client purse this tax credit for 2008? My answer is, "there is potential," IF the client plans to START employee teleworking in 2009 (yes, next year)!
Unfortunately, this is a complex topic - it involves more than just
having your employees work at home. There are technology, human resources, risk management, and many other issues that need to be addressed.
But if your client is serious about teleworking, have them contact the folks at the Clean Air Campaign office (click here). The Clean Air Campaign organization provides documents, consulting, and other resources to help find the best path for your client. They are also a great source for other information and incentives for reducing gas consumption.
Oh, I almost forgot about the "free gas" part -- if you pay Georgia taxes, you are already paying for the Clean Air Campaign! Thanks!
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2008 Legislative Update
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2008 was supposed to be the big year for tax reform, but the legislators weren't able to do nearly as much damage as they had planned! Speaker Richardson's GREAT Plan really wasn't, other House members couldn't drive off the "car tag tax," and Lt. Gov. Cagle's 10% cut in personal income taxes didn't make the cut.
Some tax-related bills did get passed, but remember, it ain't over 'til the . . .
HB 237, the "Integrated Plant Theory" bill would exempt the sales tax on all machinery and equipment that is necessary and integral to the manufacturing process as well as all water-pollution eliminating machinery;
HB 272, to cap the tax on energy paid by manufacturers when energy prices soar;
HB 1211 and HR 1276, "The Georgia Bona Fide Large Forest Conservation Use Act of 2008," which helps out the timber and forestry industries and large forest conservation.
HB 1129, "The Georgia Tourism Development Act," to provide tax incentives for companies making significant investments in Georgia by building destination/tourist attractions ...
HB 1100, boosts the income tax credit for film, video, or digital productions in Georgia, so as to make our state more competitive as a location for these productions.
(Source: Georgia Chamber of Commerce)
. . . anyway, as we learned last year, these bills don't become law until signed by Governor Perdue, and he's been known to lose his ink pen at times!
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About Us
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Alpharesults has assembled a team with the specialized knowledge and approach required to obtain Georgia income tax credits. We are not a public accounting firm. Rather, our services complement those of public accounting firms and do not create conflicted loyalties, because our professionals do not perform attestation work or other external audit functions.
We focus on small to medium-sized businesses and work exclusively in Georgia with a wide variety of in-state and out-of-state accounting firms. For more information on our services, follow this link.
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