Georgia Corporate Taxes provides comprehensive discussions on a wide range of issues dealing with the income taxation of corporations in Georgia and considers important issues for all corporations doing business in the state. Written by Jeffrey C. Glickman, Esq., and Michael T. Petrik, Esq., both of the law firm Alston & Bird LLP, this Portfolio begins with a discussion of those corporations that are subject to tax and the treatment of certain taxable and nontaxable entities. It details the actual computation of Georgia tax liability and explains Georgia's modifications to federal taxable income, apportionment and allocation issues, and available credits against tax liability.  The discussion addresses the filing of separate, consolidated, and combined returns.  

In addition, Georgia Corporate Taxes provides a discussion of Georgia's interpretation of federal limitations imposed on Georgia's corporate tax system, including the due process and commerce clauses of the U.S. Constitution and Pub. L. No. 86-272, 15 U.S.C. § 381.  A brief discussion is provided of relevant Georgia procedure, including due dates for returns and taxes, extensions, statute of limitations, assessments, refunds, interest, and penalties.  

This Portfolio concludes with a discussion of the corporate net worth tax and depository financial institutions gross receipts tax, including the computation of each tax and procedural provisions.

Georgia Corporate Taxes allows you to benefit from: 

• Hundreds of hours of original research on specific tax planning topics from leading practitioners in this area.
• Invaluable practice documents including tables, charts and lists.
• Plain-English guidance from world-class experts.
• Real-world and in-depth analysis that lets you explore various options.
• Time-saving access to relevant sections of tax laws, regulations, court cases, IRS documents and more.
• Alternative approaches to both common and unique tax scenarios.

This Portfolio is part of the Premier State Tax Library, a comprehensive series, which covers major state tax transactions and issues with expert, in-depth analysis, and offers commentary on a wide range of multi-state and state-specific taxation topics, including Sales and Use, Corporate Income, Individual Income, Property, Gross Receipts, Limitations on States' Authorities to Tax, Credits and Incentives, Electronic Commerce, Mergers and Acquisitions, Procedure and Administration, Special Industries, and more.

Detailed Analysis

2050.01. INTRODUCTION

2050.02. CORPORATIONS SUBJECT TO THE INCOME TAX

Introductory Material

A. Nexus

B. Public Law No. 86-272

1. Federal Statute

2. Defining “Solicitation of Orders”

3. Georgia Authority

C. Special Entities

1. S Corporations

2. Limited Liability Companies

3. Insurance Companies

4. Depository Financial Institutions

5. Organizations Exempt From Federal Income Tax

a. Obtaining Exempt Status

b. Annual Filings

c. Revocation of Exempt Status

d. Unrelated Business Income

6. Corporate Limited Partners

2050.03. COMPUTATION OF GEORGIA TAXABLE NET INCOME

Introductory Material

A. Reporting Methods

1. Separate Company Returns

2. Consolidated Returns

a. Taxable Years Beginning Prior to January 1, 2002

b. Taxable Years Beginning On or After January 1, 2002

3. Combined Returns

B. Starting Point: Federal Taxable Income

C. Adjustments to Federal Taxable Income

1. Additions

a. Interest and Dividends on Government Obligations

b. State Income Taxes

c. Deduction and Loss Adjustment

d. Federal Net Operating Loss

e. Like-Kind Exchange

f. Depreciation Attributable to Qualified Child Care Property

g. Loss Adjustment From Sale of Property

h. Add-back Rule

2. Subtractions

a. Interest and Dividends on Government Obligations

b. State Net Operating Loss

c. Corporate Dividends

d. Salary and Wage Deductions Reduced for Federal Jobs Tax Credit

e. Qualified Payments to Minority Subcontractors

f. Income Not Subject to Tax in Georgia

g. Employer Social Security Credit Deduction

h. Gain Adjustment From Sale of Property

i. Income Adjustment

D. Allocation and Apportionment

1. Right to Allocate and Apportion

2. Business v. Nonbusiness Income

3. Allocation of Nonbusiness Income

a. Intangible Property Investment

b. Tangible Property Investment

c. Gains From the Sale of Intangible or Tangible Property

4. Apportionment of Business Income

a. Corporations Deriving Business Income Principally From the Manufacture, Production, or Sale of Tangible Personal Property

(1) Property Factor

(2) Payroll Factor

(3) Gross Receipts Factor

b. Corporations Deriving Business Income Principally From Business Other Than the Manufacture, Production, or Sale of Tangible Personal Property

c. Special Rules

(1) Transporting Passengers or Cargo in Revenue Flight

(2) Credit Card Data Processing

(3) Petroleum Pipeline Companies

(4) Corporate Partners

(5) Zero Factors

(6) Alternative Apportionment Methods

E. Credits

1. General Principles

a. “Business Enterprise” Defined

b. “Existing Business Enterprise” Defined

c. Tiers and Less Developed Areas

d. Priority/Carryover of Credits

e. Assignment of Credits to Affiliates

2. Enterprise Zone Tax Credits and Incentives

a. Employer-Provided Transportation Tax Credit

b. Manufacturing and Telecommunications Investment Tax Credit

c. Optional Investment Tax Credit

d. Jobs Tax Credit

e. Local Credits and Incentives

3. Job Creation/Training Tax Credits

a. Qualified Business Expansion Tax Credit

b. Basic Skills Education Tax Credit

c. Retraining Tax Credit

4. Environmental Tax Credits

a. Water Conservation Facilities/Qualified Water Conservation Investment Tax Credit

b. Shift From Ground-Water Usage Tax Credit

c. Low-Emission Vehicles Tax Credit

d. Diesel Particulate Emission Reduction Technology Equipment Tax Credit

e. Clean Energy Property Credit

f. Transportation of Wood Residuals to Biomass Facility Credit

5. Economic Development Tax Credits

a. Increased Exports Tax Credit

b. Taxable Net Income Growth Tax Credit

c. Cigarette Exports Tax Credit

d. Headquarters Tax Credit

e. Manufacturing Facility Tax Credits

(1) Jobs Tax Credit

(2) Investment Tax Credit

6. Research and Development Credits

a. Qualified Research Expense Credit

b. Research Fund Investment Credit

7. Employer Credits

a. Federal Qualified Transportation Fringe Benefits Credit

b. Employer-Provided Child Care Credit

c. Credit for Telework Expenses

d. Small Employer Health Insurance Expense Credit

8. Miscellaneous Tax Credits

a. Historic Property Rehabilitation Credit

b. Low-Income Housing Credit

c. Rural Physician Credit

d. Georgia Entertainment Industry Investment Act Credit

e. Credit for Conservation Land Donation

f. Qualified Education Expense Credit

F. Alternative Minimum Tax

2050.04. PROCEDURE

A. Due Dates for Returns and Taxes

B. Interest and Penalties

C. Assessments

D. Refunds

2050.05. CORPORATE NET WORTH TAX

A. Corporations Subject To Tax

B. Computation of Net Worth Subject To Tax

C. Procedural Provisions

2050.06. DEPOSITORY FINANCIAL INSTITUTIONS GROSS RECEIPTS TAX

A. Introduction

B. Calculation of Georgia Gross Receipts

C. Returns and Payment

Working Papers

Item Description Sheet

Worksheet 1 BNA 2008 Survey of State Tax Departments: Georgia Questionnaire

Worksheet 2 2006 Georgia Consolidated Return Regulations

Worksheet 3 Georgia Department of Revenue Memorandum: Regs. 560-7-3-.13 Consolidated Returns

Bibliography

Bibliography