O.C.G.A. § 48-7-40.28 (2019)
Limitation on credit for qualified investment tax credit
(a) As used in this Code section, the term:
(1) "Credit" means a state income tax credit against the tax imposed pursuant to this article in an amount equal to 10 percent of the taxpayer's qualified investment.
(2) "Qualified investment" means a cash investment in a legal entity in which the research fund has invested; provided, however, that such investment has been made by the taxpayer at the invitation of the research fund with the express intention of permitting the taxpayer making such qualified investment to qualify for the credit.
(3) "Research fund" means a fund that is an investment entity pursuant to paragraph (7) of Code Section 10-10-1, the purpose of which is to provide early-stage financing for businesses formed as a result of the intellectual property resulting from the research conducted in the research universities in this state.
(b) A taxpayer shall be entitled to a credit for any qualified investment, subject to the conditions and limitations set forth in this Code section. Once the total amount of qualified investments reaches $75 million, investors shall no longer be eligible for a credit pursuant to this subsection with respect to all subsequent qualified investments.
(c) The credit provided in subsection (b) of this Code section shall be subject to the following conditions and limitations:
(1) In no event shall the credit for a taxable year exceed the taxpayer's income tax liability. Any unused portion of the credit shall be permitted to be carried forward and applied to the taxpayer's tax liability for the subsequent ten years. The credit shall not be applied against the taxpayer's prior years' tax liabilities;
(2) The utilization of the credit shall have no effect on the taxpayer's basis in its investment;
(3) A taxpayer shall only be allowed a credit for a qualified investment if the research fund issues to such taxpayer a certification that such investment meets the requirements of this Code section. Such certification shall include the taxpayer's name, address, the last four digits of the taxpayer's social security number or the employer identification number, as appropriate, the date, the amount of the qualified investment, and the amount of the credit to which the taxpayer is entitled;
(4) If the taxpayer is a Georgia Subchapter "S" corporation, a partnership, or a limited liability company taxed as a partnership, the credit shall be claimed by the respective shareholders, partners, or members of such entities in the same manner as they would account for their proportionate shares of income or loss from such entities. For the purposes of this Code section, such shareholders, partners, or members shall be considered to have made the qualified investments attributable to their interest in such entities; and
(5) A taxpayer shall not claim the credit provided in subsection (b) of this Code section for a cash investment into the research fund.
(d) The research fund shall provide the department at least on an annual basis a report that includes the taxpayer's name, the last four digits of the taxpayer's social security number or the employer identification number, as appropriate, and the amount of the taxpayer's qualified investment for which the research fund has issued to such taxpayer the certification pursuant to paragraph (3) of subsection (c) of this Code section. The research fund shall file this report with the department no later than January 31 of the year following the end of the reporting year.
(e) The commissioner may require such reports, promulgate such regulations, and gather such relevant data deemed necessary and advisable for the implementation of this Code section.
History
(Code 1981, § 48-7-40.28, enacted by Ga. L. 2008, p. 938, § 1/HB 1196.)
Annotations
Cross references. Penalty for disclosure of information obtained by person, corporation, or others engaged in business of preparing federal or state income tax returns or assisting in such preparation, § 16-11-81. Selection on tax form of nonprofit corporations for contribution, § 20-3-316.1. Establishment of plans to provide tax deferral benefits for state, county, or other employees, § 45-18-30 et seq. Administrative rules and regulations. Signature Requirements for Tax Returns, Official Compilation of the Rules and Regulations of the State of Georgia, Department of Revenue, Fiscal Operations Division, Substantive Regulations, § 560-3-2-.27.
Sec.
Effect of setoff on refund. Priority of department over claimant agencies for collection by setoff. Rules and regulations. Disclosure of taxpayer information to claimant agency or Administrative Office of the Courts; confidentiality; use of information.
Law reviews. For article, “Federal-Georgia Income Tax Differences: More Than Just a Nuisance,” see 20 Ga. St. B. J. 20 (1983). For note on the 2002 amendment of this chapter, see 19 Georgia St. U.L. Rev. 281 (2002). For annual survey on state and local taxation: a two-year survey, see 71 Mercer L. Rev. 279 (2019). For article, “Stay Schemin’: Tax Courts Recent Ruling on Credit Card Rewards and the Impact This Ruling has on Future Rewards Programs,” see 57 Ga. L. Rev. 805 (2023).
JUDICIAL DECISIONS Editor’s notes. - In light of the similarity of the statutory provisions, decisions under former Code 1933, Ch. 92-30 through 92-33, which was subsequently repealed but was succeeded by provisions in this chapter, are included in the annotations for this chapter. Much of the state income tax law is patterned upon the United States Internal Revenue Code of 1954. Carter v. Oxford, 102 Ga. App. 762, 118 S.E.2d 216 (decided under former Code 1933, Ch. 92-30 through 92-33). No intent to tax income earned outside state by domestic corporation. - It is not the purpose and intent of former Code 1933, Ch. 92-30 through 92-33 to tax the net income of a domestic corporation derived from
property owned or business done outside the territorial limits of this state, although this may constitutionally be done, as regards a domestic corporation. Interstate Bond Co. v. State Revenue Comm’n, 50 Ga. App. 744, 179 S.E. 559, 1934 Ga. App. LEXIS 587 (1934) (decided under former Code 1933, Ch. 92-30 through 92-33). “Doing business” construed. - “Doing business” in order to incur tax liability under statutes imposing taxes on persons doing business in a state means that a foreign corporation must transact some substantial part of the corporation’s ordinary business there, and that it must be continuous in character as distinguished from a mere casual or occasional transaction. A series of
transactions is not necessarily conclusive on the question of whether the corporation is doing business. Redwine v. United States Tobacco Co., 209 Ga. 725, 75 S.E.2d
556, 1953 Ga. LEXIS 378 (1953) (decided under former Code 1933, Ch. 92-30 through 92-33).
OPINIONS OF THE ATTORNEY GENERAL Editor’s notes. - In light of the similarity of the statutory provisions, opinions under former Code 1933, Ch. 92-99, which was subsequently repealed but was succeeded by provisions in this chapter, are included in the annotations for this chapter. Elements of proof of criminal violation of income tax laws. - To sustain a criminal prosecution for
violation of the state income tax laws, it must be shown that the violator is subject to the requirements of the laws; that after actual notice the violator failed to comply with the request of the commissioner, and that the violator resides in the county where the proceedings are instituted. 1945-47 Ga. Op. Att’y Gen. 564 (rendered under former Code 1933, Ch. 92-30 through 92-33).
RESEARCH REFERENCES ALR. Constitutionality, construction, and application provisions of state tax law for conformity with federal income tax law or administrative and judicial interpretation, 42 A.L.R.2d 797.
Damages for breach of contract as affected by income tax considerations, 50 A.L.R.4th 452.
ARTICLE 1 GENERAL PROVISIONS RESEARCH REFERENCES ALR. Bond or warrant of governmental subdivision as subject of taxation or exemption, 26 A.L.R. 547; 44 A.L.R. 510. Tax computed upon aggregate income of husband and wife who make joint return as apportionable in respect of liability for its payment, 104 A.L.R. 430. Retroactive effect of income tax, 109 A.L.R. 523; 118 A.L.R. 1153. Income tax in respect of corporate earnings returned to stockholding customers in proportion to business transacted, 109 A.L.R. 969.
Validity and construction of statute or ordinance providing for relief of poor persons from taxes, 123 A.L.R. 597. Valuation of gift property for purposes of gift tax, 60 A.L.R.2d 1304. Exclusion of meals and lodging from gross income under “convenience of the employer” rule, 84 A.L.R.2d 1215. What constitutes “reasonable cause” under state statutes imposing penalty on taxpayer for failure to file timely tax return unless such failure was due to “reasonable cause,” 29 A.L.R.4th 413.