Finding the right credits and incentives for your clients is not easy. Especially if you have clients doing business in more than one state, it can be overwhelming to dig out all of the possible credits and incentives for them. Tax information services such as CCH or others may only scratch the surface. Often there are multiple departments, agencies, and organizations within each state that are responsible for credits and incentives.
We found one source that can help. It’s the Institute on Taxation and Economic Policy (ITEP) page for “Tax Expenditure Reports” (access ithere) that lists reports from each state.
It’s funny how states call tax credits, exemptions, and incentives “expenditures.” That’s one way to look at it. But we say those expenditures are just another way you can help make $$ for your clients.
Combine that with investigating the state economic development sites, and you will have a pretty good idea of which credits and incentives to pursue. Your clients will appreciate your help in turning state “expenditures” into $$ for them!
We have heard several issues related to snail mailing Georgia amended income tax returns to DOR, especially when tax credits have been added. Make sure you send it to the correct address (AND use a USPS CertifiedMail Receipt form).
Here are the mailing addresses:
Georgia Department of Revenue
Form 500X (individual):
P.O. Box 740318
Atlanta, GA 30374-0318
Form 600 (C corporation):
P.O. Box 740397
Atlanta, GA 30374-0397
Form 600S (S corporation):
P.O. Box 740391
Atlanta, GA 30374-0391
Form 700 (partnership):
P.O. Box 740315
Atlanta, GA 30374-0315
(Click here for details)
Good luck with tax season!
The Georgia Legislature is about to wrap up this year’s session, and there have been few changes that relate to business incentives or tax credits. But an interesting one is for the Opportunity Zones. SB 137makes changes that allow Opportunity Zones to be designated by the commissioners of the departments of Economic Development and Community Affairs – IF they agree! (click here for details)
With the March 15 tax filing date approaching, you may be facing a dilemma for a pass-through entity, especially if your client wants to file shareholder individual returns by 4/15. What if they plan to submit tax credits but may not have the tax credit documents completed on time? Here are some options to consider:
- Extend the state corporate income tax return (only need to extend state, not federal), then file individual returns on 4/15
- File the state corporate income tax return by 3/15 without tax credits, then amend the state corporate return for tax credits applied, distribute amended K-1s, and file individual tax returns on time by 4/15
Tax planning with your client really pays off in keeping your clients happy!
We’ve been checking our sources and can report no major changes are planned for Georgia’s corporate income tax credits. We attended the recent 2013 Georgia Chamber ”Eggs and Issues” breakfast, the Georgia Economic Developer’s Association Legislative Luncheon, and we discussed current legislation with representatives of the Georgia Department of Economic Development.
Bottom line: No plans for significant changes to tax credits. Some new credits will be proposed for development in historic downtown districts as well as some new wrinkles for angel investors and clean energy initiatives, but that’s it.
That being said — things can change during the legislative session. We will keep you posted.
Time-critical 2013 Job Tax Credit ranking details have been released by the Department of Community Affairs (click here). Also, please note:
- Census Tracts have changed: due to the transition from the 2000 Census boundaries to the 2010 Census boundaries, your clients’ locations may be impacted. This applies to regular JTC, Less Developed Census Tract, Opportunity Zone, and Military Zone tax credits.
- Notice Of Intents need to be filed: to maintain your clients’ tier, zone, or Less Developed Census Tract designations, the form must be filed by Feb. 15, 2013 (click here)!!!!
If you haven’t done so, please review your clients’ plans for 2013. Job Tax Credits may be available if they plan to increase employment levels, open new or change locations in Georgia, or buy another company.