Investment Tax Credit Overview
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One tax credit that was not affected by 2009 tax legislation is the Investment Tax Credit (ITC).
The ITC can benefit your manufacturing or telecommunications clients. This tax credit is based on the costs of additions to property, plant and equipment assets and includes capitalized items and operating leases.
The tax credit amount is a percentage of the costs (1%, 3% or 5%), based on the county (tier 1, 2, 3 or 4) where the assets are located. For example, a $1,000,000 plant expansion in Gwinnett County (Tier 4 = 1%) will generate a $10,000 tax credit.
The ITC application (Form IT-APP) must be approved by DOR before the credit can be utilized. Since the ITC is taken the year after assets are booked, you can look back 4 years for qualifying investments. This credit is limited to 50% of income tax liability each year, but unused credits may be carried forward ten years. For details click here.
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Quick Update
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As you may know, the Legislature made lots of changes to the tax
credits this year, but Governor Perdue has not signed the bills yet. And
as you may also know, it's not over until it's over! We will give you
a full update after he signs (or doesn't sign!).
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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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