05 LC 18
4115
House
Bill 468
By:
Representatives Lewis of the
15th,
Burmeister of the
119th,
Stephens of the
164th,
Sims of the
169th,
and Lunsford of the
110th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-7-40.17 of the Official Code of Georgia Annotated,
relating to state income tax credits with respect to establishing or relocating
certain headquarters, so as to change the manner and method of computing the
amount of such credits; 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.
Code
Section 48-7-40.17 of the Official Code of Georgia Annotated, relating to state
income tax credits with respect to establishing or relocating certain
headquarters, is amended by striking subsections (a) and (b) and inserting in
their its place new subsections (a) and (b) to read as follows:
"(a)
As used in this Code section, the term:
(1)
'Average wage' means the average wage of the county in which a full-time job is
located as reported in the most recently available annual issue of the Georgia
Employment and Wages Averages Report of the Department of Labor.
(2)
'Full-time job' means employment for an individual which:
(A)
Is located at a headquarters;
(B)
Has a regular work week of 30 hours or more;
and
(C)
Pays at or above:
(i)
In tier 1 counties, the average wage of the county in which it is
located;
(ii)
In tier 2 counties, 105 percent of the average wage of the county in which it is
located;
(iii)
In tier 3 counties, 110 percent of the average wage of the county in which it is
located; and
(iv)
In tier 4 counties, 115 percent of the average wage of the county in which it is
located; and
(D)(C)
Has no predetermined end date.
(3)
'Headquarters' means the principal central administrative office of a taxpayer
or a subsidiary of the taxpayer.
(4)
'Tier' means a tier as designated pursuant to Code Section 48-7-40, as
amended.
(b)
A taxpayer establishing its headquarters in this state or relocating its
headquarters into this state which:
(1)
Within one year of the first date on which it withholds wages for employees at
such headquarters or the headquarters of a subsidiary, defined as the
taxpayeŕs
'affiliated group' within the meaning of Section 1504(a) of the Internal Revenue
Code of 1986, as amended, pursuant to the provisions of Code Section 48-7-101,
employs at least 50 persons in new full-time jobs at such headquarters
and the
average wage of all jobs at the location where the headquarters is domiciled is
10 percent greater than the average wage for the county in which the
headquarters is domiciled;
(2)
Within one year of the first date on which it withholds wages for employees at
such headquarters pursuant to the provisions of Code Section 48-7-101 incurs
within the state a minimum of $1 million in construction, renovation, leasing,
or other costs related to such establishment or relocation; and
(3)
Elects not to receive the tax credits provided for by Code Sections 48-7-40,
48-7-40.1, 48-7-40.2, 48-7-40.3, 48-7-40.4, 48-7-40.7, 48-7-40.8, and 48-7-40.9
for such jobs or such investment
shall
be allowed a credit for taxes imposed under this article equal to $2,500.00
annually per
eligible
new full-time job, or $5,000.00 if the average wage of the new full-time jobs
created is 200 percent or more of the average wage of the county in which
such jobs
are located per eligible new full-time job;
provided,
the
headquarters is domiciled; however, that
where the amount of such credit exceeds a
taxpayeŕs
liability for such taxes in a taxable year, the excess may be taken as a credit
against such
taxpayeŕs
quarterly or monthly payment under Code Section 48-7-103 but not to exceed in
any one taxable year $2,500.00 annually per eligible new full-time job, or
$5,000.00 if the average wage of the new full-time jobs created is 200 percent
or more of the average wage of the county in which such jobs are located for
each new full-time job when aggregated with the credit applied against taxes
under this article. Each employee whose employer receives credit against such
taxpayeŕs
quarterly or monthly payment under Code Section 48-7-103 shall receive credit
against his or her income tax liability under Code Section 48-7-20 for the
corresponding taxable year for the full amount which would be credited against
such liability prior to the application of the credit provided for in this
subsection. Credits against quarterly or monthly payments under Code Section
48-7-103 and credits against liability under Code Section 48-7-20 established by
this subsection shall not constitute income to the taxpayer. For each new
full-time job created, the credit established by this subsection may be taken
for the first taxable year in which the new full-time job is created and for the
four immediately succeeding taxable years; provided, however, that such new
full-time jobs must be created within seven years from the close of the taxable
year in which the taxpayer first becomes eligible for such credit. Credit shall
not be allowed during a year if the net employment increase falls below the 50
new full-time jobs required. Any credit received for years prior to the year in
which the net employment increase falls below the 50 new full-time jobs required
shall not be affected. The commissioner shall adjust the credit allowed each
year for net new employment fluctuations above the 50 new full-time jobs
required."
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval and shall be applicable to all taxable years
beginning on or after January 1, 2005.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.