hb393.html

05 LC 14 9047

House Bill 393

By: Representatives Casas of the 103rd, Miller of the 106th, Heard of the 104th, Stephens of the 164th, and May of the 111th

A BILL TO BE ENTITLED
AN ACT

To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, and computation of income tax, so as to provide for an income tax credit for employers who convert a certain percentage of their work force to telecommuting status; to provide for definitions; to provide for conditions, limitations, and exclusions; to provide for powers, duties, and authority of the state revenue commissioner with respect to the foregoing; to provide an effective date; to provide for applicability; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the imposition, rate, and computation of income tax, is amended by adding a new Code section immediately following Code Section 48-7-29.8, to be designated Code Section 48-7-29.9, to read as follows:

"48-7-29.9.

(a) As used in this Code section, the term:

(1) 'Employer' means any employer upon whom an income tax is imposed by this article and who employs at least ten persons in this state.

(2) 'Telecommute' and other forms of the word refer to an employeés use of electronic communications to perform work that ordinarily would be performed at the employeŕs place of business at the employeés home or secondary residence or both, thereby eliminating the employeés physical commute to and from that employeŕs place of business.

(3) 'Workplace employee' means an employee who performs all or substantially all of his or her employment duties at the employeŕs place of business.

(b) For taxable years beginning on or after January 1, 2005, an employer shall be allowed a state income tax credit against the tax imposed by this chapter if the employer has on or after January 1, 2004, converted the status of at least 20 percent of its employees in this state from workplace employees to telecommuting employees. In order to count towards this 20 percent threshold, a position must be either:

(1) Converted from workplace status to telecommuting status on or after January 1, 2004; or

(2) Filled by a person initially hired on or after January 1, 2004, who initially qualifies at the time of hiring as a telecommuter.

(c) The amount of such credit for each taxable year shall be 1 percent of the gross salary or wages paid by the employer to each qualifying employee for each calendar month the employee worked as a telecommuter during the taxable year, subject to a maximum credit amount of $1,000.00 per employee per taxable year. The status of an employee as a telecommuter shall be determined on a calendar month basis, and to qualify as a telecommuter, an employee must work from home or a secondary residence or both for 60 percent of his or her working hours during the calendar month. Where this test is met and the employer otherwise qualifies, the employeés total compensation for that calendar month shall be used in computing the credit, subject only to the $1,000.00 yearly cap.

(d) The tax credit under this Code section shall apply for the taxable year in which an employer completes the 20 percent or greater conversion specified in this Code section and shall continue to apply for each future taxable year in which the 20 percent threshold is maintained.

(e) In no event shall the total amount of any tax credit under this Code section for a taxable year exceed 50 percent of the taxpayeŕs income tax liability for the taxable year computed without regard to this Code section. No unused tax credit shall be allowed to be carried forward to apply to the taxpayeŕs succeeding yearś tax liability. No such tax credit shall be allowed the taxpayer against prior yearś tax liability.

(f) The commissioner shall promulgate any rules and regulations necessary to implement and administer this Code section."

SECTION 2.

This Act shall become effective upon its approval by the Governor or upon its becoming law without such approval and shall apply with respect to taxable years beginning on or after January 1, 2005.

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.