------------------------------------------------------------------------------------------------------------------
Alpha-Mail                                               logo web sm 12mb
 A Tax Professional's Guide to Credits and Incentives, Courtesy of Alpharesults
 Vol. IX No. 12 December 2015
------------------------------------------------------------------------------------------------------------------
In this issue
Georgia DOR Session
Spotlight on Vermont Credits and Incentives

Hello!

Welcome to Alpha-Mail, the monthly newsletter about tax credits and incentives for tax professionals.

This month, learn what Georgia's Department of Revenue professionals said at the Annual IPT Georgia DOR One-Day Session in November.   Also, some of you may have clients who own businesses in Vermont, so be sure to see our overview of Vermont credits and incentives. We hope you can use this information to strengthen your client relationships! 
 
Thank you for reading Alpha-Mail -- please click reply to tell us what you think.
 
All the best, 
Dale&JimSigsSM1     
 Dale Stapler    Jim Tinsley
     Alpharesults, LLC 
 
 
 

Georgia DOR Session                        
-------------------------------------------------------------------------

We attended the annual Institute for Professionals in Taxation (IPT) Georgia DOR One day session in November. There has been several updates and changes at DOR. The following is an overview:
  • Lynne Riley, new DOR Commissioner: Her CPA background will help with tax policy and regulation.
  • Staci Guest, Chief Tax Officer: In this new position, she is handling many of the tasks previously done by Ed Many.
  • Ronald Johnson, Jr, Director of Taxpayer Services (his dad also worked at DOR): Introduced special contact paths for CPAs and tax preparers: revenue.incometaxcpa@dor.ga.gov and 404-417-2395
  • Tax Tribunal Judge Larry O'Neal: Reported on this lower cost & quicker way to dispute tax issues.  Most of the 3,000 cases are individual income tax issues.
  • John Foster, Income Tax Policy Manager:
    • The film tax credits are undergoing more scrutiny due to higher $ volume. Due to the large backlog of approvals and audits by the state, DOR employees are being added to this area.
    • There were several tax credit changes that will start in 2016. These changes include the Conservation Tax Credit ending in 2016 (HB 464) and the Historic Building Tax Credit adding a new job creation bonus (HB 308) (Click here ).
    • 2015 income tax forms are being changed to better administer tax credits. For example, pass-through entities (forms 600S & 700) will list each shareholder and tax credit amount. C corporations and individuals (forms 600 and 500) will list tax credits used and amount to be carried forward.
  • Information Technology: DOR's new Integrated Tax System (ITS) is leveraging technology to streamline processes, strengthen compliance and provide better customer service. The Georgia Tax Center (GTC) will be adding income tax and tax credits capabilities soon (click here). There will be a new Business Credit Manager who will handle submitting tax credits for pre-approval (such as the private school tax credit). Finally, there is a new app for your smart phone called "myGATax."
If you haven't already done so, NOW is a great time to reach out to your clients to let them know about the tax credit $$ waiting for them! 

 
JimSig  

Vermont Credits and Incentives            
-------------------------------------------------------------------------
      
As we've mentioned before, our Georgia clients frequently ask us to investigate potential credits and incentives in other states where they have operations, potential acquisitions or strong relationships with customers or vendors. In addition, private equity groups ask us about potential $$ for their portfolio companies.
 
We were recently asked about credits and incentives in Vermont, and their state economic development professionals gave us some details (Vermont Agency of Commerce and Community Development (ACCD) site click here).
 
Vermont does not offer much in the way of credits and incentives for new and existing businesses.  CNBC ranked Vermont #42 in their 2015 America's Top States for Business survey (Georgia was #5 in the same survey).    
 
Incentives and Credits include:  

Vermont Employment Growth Incentive (VEGI) -- for business recruitment, growth and expansion, VEGI can provide a cash payment, based on the revenue return generated to the State by prospective qualifying job and payroll creation and capital investments, to businesses that have been authorized to earn the incentive and who then meet performance requirements.  Pre-approval required, of course.

Research and Development Tax Credit -- Vermont companies that make eligible research and development expenditures in Vermont can claim a tax credit equal to 27 percent of the federal tax credit allowed in the taxable year. Eligible research and development investments are the same as those defined by the federal R&D tax credit under Section 41(a) of the IRS Code which are made in Vermont. If the tax credit cannot be applied in the year earned, the taxpayer can carry forward the credit for up to 10 years.

Percentage of Federal Investment Tax Credit -- Provides tax credits for energy, qualifying advanced coal, qualifying gasification, and qualifying advanced energy projects.  Credit is 24% of investment tax credit attributable to the Vermont-property portion of the investment.
 
Compared to Georgia, Vermont has:
  • Higher corporate and personal income tax rates.
  • A far narrower range of incentives.
  • Pre-approval required for growth incentives
To summarize, Vermont is below average for business tax incentives, but who cares?  It's a beautiful state.  
 
Do any of your clients have Vermont connections?  If so, you will need to start collecting information and planning early, and good luck!
 
 
DaleSig
   
 

About Us
-------------------------------------------------------------------------

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. 

 
Quick Links...
-------------------------------------------------------------------------

Contact Information
-------------------------------------------------------------------------
email:  alpha-mail@alpharesults.com                   phone: 770-667-1332
-------------------------------------------------------------------------


Forward Alpha-Mail to a Friend!

Click link below: