Ga. Comp. R. & Regs. R. 110-35-1-.10 - Claiming Credits

(1) Upon making a capital investment in a rural fund, a rural investor earns a vested right to a credit against such entity's Georgia state tax liability that may be utilized on each credit allowance date of such capital investment in an amount equal to the applicable percentage for such credit allowance date multiplied by the purchase price paid to the rural fund for the capital investment. The applicable percentages that may be claimed are:

(a) Credit Allowance Date #1 - 0%;

(b) Credit Allowance Date #2 - 0%;

(c) Credit Allowance Date #3 - 15%;

(d) Credit Allowance Date #4 - 15%;

(e) Credit Allowance Date #5 - 15%;

(f) Credit Allowance Date #6 - 15%; and

(g) No subsequent credits apply.

(2) The amount of the credit claimed by an allocatee shall not exceed the amount of such entity's Georgia state tax liability for the tax year for which the credit is claimed. Any amount of credit that an allocatee is prohibited from claiming in a taxable year as a result of this Code section may be carried forward for use in any subsequent taxable year.

(3) No allocatee claiming a credit under any applicable code section is required to pay any additional tax that may arise as a result of claiming such credit.

(4) No credit claimed under O.C.G.A. § 33-1-25shall be refundable or saleable on the open market. Credits earned by or allocated to a partnership, limited liability company, or S-corporation may be allocated to the partners, members, or shareholders of such entity for their direct use in accordance with the provisions of any agreement among such partners, members, or shareholders, and a rural fund must notify the Department of the names of the entities that are eligible to utilize credits pursuant to an allocation of credits or a change in allocation of credits or due to a transfer of a capital investment upon such allocation, change, or transfer. Such allocation shall not be considered a sale.

Notes

Ga. Comp. R. & Regs. R. 110-35-1-.10

O.C.G.A. § 33-1-25.

Original Rule entitled "Claiming Credits" adopted. F. Feb. 16, 2018; eff. Mar. 9, 2018, as specified by Agency.