TAX NEWS - DECEMber 2009

Tax Credits FAQ - State of Georgia tax

Q. How can I qualify for the low income credit?

A. You qualify if you are a Georgia resident, your Federal AGI is less than $20,000, and you are not claimed or eligible to be claimed as a dependent by another taxpayer on their Federal or Georgia return. Refer to the instruction booklet (IT-511) for additional information.


Q. If my wife and I file separate can we each take a low income credit?

A. Yes, but the credit is limited to the amount that would have been allowed had a joint return been filed.


Q. Do I have to have income to qualify for the low income credit?

A. No.


Q. Can a part-year resident qualify for the low income credit?

A. Yes, if they are living in Georgia at the end of the year and they meet the other requirements, a full credit will be allowed.


Q. What is the low emission vehicle tax credit?

A. This is a credit of the lesser of 10% of the cost of the vehicle or $2,500 for the purchase or lease of a new low-emission vehicle. There is also a credit for the conversion of a standard vehicle to a low-emission vehicle which is equal to 10% of the cost of conversion, not to exceed $2,500 per converted vehicle. Refer to the instruction booklet (IT-511) for additional information.


Q. What is the zero emission vehicle tax credit?

A. This is a credit of the lesser of 20% of the cost of the vehicle or $5,000 on the purchase or lease of a new zero-emission vehicle. There is also a credit for the conversion of a standard vehicle to a zero-emission vehicle which is equal to 10% of the cost of conversion, not to exceed $2,500 per converted vehicle. Refer to the instruction booklet (IT-511) for additional information.


Q. Does Georgia have an earned income credit?

A. No.


Q. What are the current criteria for qualifying with the Department of Revenue for the Georgia Low Income Housing Credit?

A. In order to qualify for the Georgia low income housing credit, the qualified Georgia project must be eligible for the federal housing credit, as defined in Section 42 of the IRC of 1986.


Q. What should be included with the tax return when claiming the Georgia Low Income Housing Credit?

A. For consistency with IRS Regulations, a partnership K-1 (if claiming the credit as a flow through from a partnership), the associated Federal Form 8609 tax credit certificate and a schedule that includes each property for which a credit is claimed with a building-by-building allocation should be submitted with the tax return. See Form IT-HC.