GOAL Tax Credits up to $10,000 for owners of S-Corps, LLCs & Partnerships

In 2013, Governor Deal signed the new legislation related to our program, which allows the owners of pass-through entities to receive a Georgia income tax credit for up to $10,000.

GOAL has received clarifying rules from the Georgia Department of Revenue (DOR) as well as instructions regarding how to apply for the $10,000 tax credits. Some important points are below:

  • The paperwork must be submitted to the DOR in the name of the individual owner, rather than in the name of the business (pass through entity).
  • An individual taxpayer may only receive a maximum tax credit of $10,000, regardless of ownership in multiple pass through entities;
  • If the taxpayer’s spouse is also owner in a pass through entity (or entities), the couple may be allowed a tax credit of $10,000 each, for a total of $20,000;
  • Applicants must provide their estimated Georgia income from the pass through entity (or entities). All Georgia income, loss and expense from the taxpayer selected pass through entities will be combined to determine Georgia income for purposes of the QEE credit. Such combined income shall be multiplied by 6% to determine the Georgia income tax that would be paid as a result of income from pass through ownership. There is additional detail – and a helpful Example – on page 5 of the Department of Revenue Rules governing the Qualified Education Expense Credit law, found at: http://rules.sos.state.ga.us/docs/560/7/8/47.pdf.
  • Please note: 6% of the Georgia income from pass through entity (or entities) is the maximum amount that may be claimed as a tax credit, and any excess amounts may not be claimed in the current year and may not be carried forward. To make this somewhat simpler, the taxpayer’s Georgia income from pass through entities must be at least $166,667 to take advantage of the full $10,000 tax credit ($166,667 * 6% = $10,000).