The tax credits are available to certain “qualified investors” that make “qualified investments” in “qualified businesses” headquartered in Georgia. The maximum credit to be allowed in for all investments made in 2015 and allowed in 2017 is $5 million. The credit is non-refundable (i.e., it cannot exceed the investor’s Georgia net tax liability after other credits are applied). The tax credit may be carried forward for five years (but may not be carried back) and any credit actually used by a taxpayer will reduce the taxpayer’s basis in the invested security. The tax credit is limited to $50,000 annually per individual, whether made directly or through a pass-through entity. For example, a $100,000 investment made in 2015 will make a qualified investor eligible for up to a $35,000 credit against its Georgia state income tax liability in the 2017 taxable year. Qualified investors are entitled to claim angel investor credits against their Georgia state income tax liability equal to 35 percent of the amount of a qualified investment, beginning in the second year following the year of the qualified investment. Georgia Angel Investor Tax Credit for Investors (Before House Bill 237 and Notice IT-2016-2) Second, on May 2, 2016, the Georgia Department of Revenue issued Notice IT-2016-2, amending Georgia Rule 560-7-8-.52, conforming the program to amended law and making some administrative changes as well. There have been two significant changes to the Georgia angel tax credit program in the past year. First, the Georgia legislature, through House Bill 237, adopted into law in 2015, extended the angel investment tax credit for 2016, 2017, and 2018. The maximum credit to be allowed for all investments made in 2016, 2017, and 2018 and allowed in 2018, 2019, and 2020, respectively, is $5 million for each year. Georgia’s angel tax credit program provides early investors in certain start-ups and new businesses (often called “angels”) a credit against their Georgia State income tax based upon their investments in certain qualified Georgia businesses. In Georgia, start-ups and new businesses are often able to attract investors, in part, because of Georgia’s “angel tax credit” program. Restaurant, Food and Beverage, and Licensing.
Employee Benefits and Executive Compensation.