2009 Retraining Tax Credit Status
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We recently met with Pam Griffin at Quickstart to discuss the new Retraining Tax Credit law contained in HB 439. She told us a couple of things:
Several changes are planned, and her department at TCSG (Technical College System of GA) plans to complete new guidelines soon.
The new law excludes certain types of training on "commercially, mass produced software packages for word processing, data
base management, presentations, spreadsheets, e-mail, personal
information management, or computer operating systems," but then makes an exception for "those providing support or
training on such software."
TCSG and DOR are trying to clarify and resolve just what these words mean. What are commercially, mass produced software packages? What counts & what doesn't? What is meant by support?
NOTE: the new Retraining Tax Credit law and guidelines will apply to tax years that BEGIN on or after January 1, 2009. If your client's tax year ends before 12/31/09, then the previous 2008 Retraining Tax Credit law and guidelines apply.
ALSO NOTE: The new law does not affect any open prior years. If your clients are looking to boost cash flow, the untapped credits from prior years could help a lot!
We will keep you posted on the new guidelines and their impacts on your clients' Retraining Tax Credits.
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Port Activity Tax Credit
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The Port Activity Tax Credit is frequently overlooked. It provides a bonus on top of the Job Tax Credit (additional $1,250 per job) or the Investment Tax Credit (increases the tax credit to 5%). Your client has to ship a minimum amount of items (measured in net tons, containers or twenty-foot equivalent units) through a Georgia port (such as Savannah, Brunswick, Columbus or Bainbridge). The client must hold title to the item (that is, their name must be on the bill of lading) when it passes through the port.
For 2009 and prior years - There is a pending lawsuit between DOR and Georgia Power. DOR feels that the Port Activity tax credit only applies to exports. The minimum amount of items shipped is based on increases above a set amount or 1997 shipment quantity.
Starting in 2010 - HB 439 states that the Port Activity tax credit applies to imports and exports. The minimum amount of items shipped is based on increases above prior year's shipments.
In summary, the Port Activity Tax Credit can be confusing to determine if qualifications have been met. If your clients are not utilizing the credit, they would probably appreciate feedback from you identifying their potential net after tax (after utilizing the credit) benefits.
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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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