06 LC 18
5175S
House
Bill 1157 (COMMITTEE SUBSTITUTE)
By:
Representatives Burkhalter of the
50th,
Richardson of the
19th,
Keen of the
179th,
and Fleming of the
117th
A
BILL TO BE ENTITLED
AN ACT
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 change certain provisions regarding income tax credits for employers
providing approved retraining programs; to provide for definitions; to provide
for procedures, conditions, and limitations; to provide for powers, duties, and
authority of the state revenue commissioner; to provide an effective date; 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 striking
Code Section 48-7-40.5, relating to tax credits for employers providing approved
retraining programs, and inserting in its place a new Code Section 48-7-40.5 to
read as follows:
"48-7-40.5.
(a)
As used in this Code section, the term:
(1)
'Approved retraining' means employer provided or employer sponsored retraining
that meets the following conditions:
(A)
It enhances the functional skills of employees otherwise unable to function
effectively on the job due to skill deficiencies or who would otherwise be
displaced because such skill deficiencies would inhibit their utilization of new
technology;
(B)
It is approved and certified by the Department of Technical and Adult Education;
and
(C)
The employer does not require the employee to make any payment for the
retraining, either directly or indirectly through use of forfeiture of leave
time, vacation time, or other compensable time.
(2)
'Cost of retraining' means direct instructional costs as defined by the
Department of Technical and Adult Education including instructor salaries,
materials, supplies, and textbooks but specifically excluding costs associated
with renting or otherwise securing space.
(3)
'Employee' means any employee resident in this state who is employed for at
least 25 hours a week, who has been continuously employed by the employer for at
least 16 consecutive weeks.
(4)
'Employer' means any employer upon whom an income tax is imposed by this
chapter.
(5)
'Employer provided' refers to approved retraining offered on the premises of the
employer or on premises approved by the Department of Technical and Adult
Education by instructors hired by or employed by an employer.
(6)
'Employer sponsored' refers to a contractual arrangement with a school,
university, college, or other instructional facility which offers approved
retraining that is paid for by the employer.
(7)
'Qualifying airline' means any employer which is authorized by the Federal
Aviation Administration or appropriate agency of the United States to operate as
an air carrier under an air carrier operating certificate and which provides
regularly scheduled flights for the transportation of passengers or cargo for
hire.
(b)
A tax credit shall be granted to an employer who provides or sponsors an
approved retraining program. The amount of the tax credit shall be equal to
one-half of the costs of retraining per full-time employee, or $500.00 per
full-time employee, whichever is less, for each employee who has successfully
completed an approved retraining program. No employer may receive a credit if
the employer requires that the employee reimburse or pay the employer for the
cost of retraining.
(c)
Any tax credit claimed under this Code section for any taxable year beginning on
or after January 1, 1998, but not used for any such taxable year may be carried
forward for ten years from the close of the taxable year in which the tax credit
was granted. The tax credit granted to any employer pursuant to this Code
section shall not exceed 50 percent of the amount of the
taxpayeŕs
income tax liability for the taxable year as computed without regard to this
Code section.
(d)
To be eligible to claim the credit granted under this Code section, the employer
must certify to the department the name of the employee, the course work
successfully completed by such employee, the name of the provider of the
approved retraining, and such other information as may be required by the
department to ensure that credits are only granted to employers who provide or
sponsor approved retraining pursuant to this Code section and that such credits
are only granted to employers with respect to employees who successfully
complete such approved retraining. The department shall adopt rules and
regulations and forms to implement this credit program. The department is
expressly authorized and directed to work with the Department of Technical and
Adult Education to ensure the proper granting of credits pursuant to this Code
section.
(e)
The Department of Technical and Adult Education is expressly authorized and
directed to establish such standards as it deems necessary and convenient in
approving employer provided and employer sponsored retraining programs. In
establishing such standards, the Department of Technical and Adult Education
shall establish required hours of classroom instruction, required courses,
certification of teachers or instructors, progressive levels of instruction, and
standardized measures of employee evaluation to determine successful completion
of a course of study.
(f)
In the case of a qualifying airline:
(1)
Any tax credits with respect to retraining approved by the Department of
Technical and Adult Education on or before December 31, 2005, which have been
claimed for a taxable year ending on or before December 31, 2005, and which are
available to be carried forward to a taxable year ending on or after December
31, 2005, may be taken as a credit against a qualifying
airlinés
quarterly or monthly payment required to be made under Code Section 48-7-103 on
or after January 1, 2006. The taxpayer may file an election with the
commissioner to take such credit against quarterly or monthly payments under
Code Section 48-7-103 that become due before the due date of the income tax
return on which such credit may be claimed. In the event of such an election,
the commissioner shall confirm with the taxpayer a date, which shall not be
later than 30 days after receipt of the
taxpayeŕs
election, when the taxpayer may begin to take the credit against such quarterly
or monthly payments. Nothing in this subsection shall be construed to allow a
credit to be utilized beyond the ten-year period during which a credit may be
carried forward under subsection (c) of this Code section; and
(2)
Each employee whose employer receives credit against such qualifying
airlinés
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.
(g)
The commissioner shall promulgate such rules and regulations as are necessary to
implement and administer this Code
section."
SECTION
2.
This
Act shall become effective on July 1, 2006.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.