06 LC 18
5672S
The
Senate Rules Committee offered the following substitute to HB 1157:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 48 of the Official Code of Georgia Annotated, relating to revenue
and taxation, 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 change
certain provisions regarding the limited duration sales and use tax exemption
for jet fuel sold to or used by certain qualifying airlines; to provide an
effective date; to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
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)(1)
Except as provided in paragraph (2) of this subsection,
any
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.
(2)
With respect to a qualifying airline 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 15 years from the close of
the taxable year in which the tax credit was granted. The tax credit granted to
any qualifying airline 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)
The commissioner shall promulgate such rules and regulations as are necessary to
implement and administer this Code
section."
SECTION
2.
Said
title is further amended in Code Section 48-8-3, relating to exemptions from
sales and use taxation, by striking paragraph (33.1) and inserting in its place
a new paragraph (33.1) to read as follows:
"(33.1)(A)
The sale or use of jet fuel to or by a qualifying airline, to the extent
provided in subparagraphs (B) and (C) of this paragraph.
(B)(i)(I)
For each fiscal year beginning after June 30, 2005,
and ending
prior to July 1, 2006,each qualifying
airline shall pay the first $15 million of state sales and use tax, plus
applicable local sales and use tax, levied or imposed by this chapter on the
purchase or use of jet fuel. Thereafter, the purchase of jet fuel by a
qualifying airline during the fiscal year shall be exempt from state and local
sales and use tax except as provided in division (ii) of this
subparagraph.
(i)(II)
For each fiscal year beginning after June 30, 2006, each qualifying airline
shall pay the first $10 million of state sales and use tax, plus applicable
local sales and use tax, levied or imposed by this chapter on the purchase or
use of jet fuel. Thereafter, the purchase of jet fuel by a qualifying airline
during the fiscal year shall be exempt from state and local sales and use tax
except as provided in division (ii) of this subparagraph.
(ii)
The exemptions provided in division (i) of this subparagraph shall not apply to
any local option sales tax for educational purposes authorized pursuant to the
authority of Article VIII, Section VI, Paragraph IV of the Constitution of
Georgia and which is effective before July 1, 2005.
(C)
The sale or use of jet fuel to or by a qualifying airline shall not be subject
to any local sales and use tax which becomes effective on or after July 1,
2005.
(D)
Each qualifying airline purchasing jet fuel on which state sales and use tax is
reasonably expected to exceed
$15
$10
million shall report and pay directly to the Department of Revenue the tax
applicable to the purchase of jet fuel under procedures required by the
commissioner.
(E)
For the purposes of this subparagraph, the term 'local sales and use tax' shall
mean any sales tax, use tax, or local sales and use tax which is levied and
imposed in an area consisting of less than the entire state, however authorized,
including, but not limited to, such taxes authorized by or pursuant to
constitutional amendment; by or pursuant to Section 25 of an Act approved March
10, 1965 (Ga. L. 1965, p. 2243), as amended, the 'Metropolitan Atlanta Rapid
Transit Authority Act of 1965'; or by or pursuant to Article 2, 2A, 3, or 4 of
this chapter.
(F)
The exemption provided for in this paragraph shall apply only as to transactions
occurring on or after July 1, 2005, and prior to July 1, 2007.
(G)
For purposes of this paragraph, a 'qualifying airline' shall mean any person
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.
(H)
The commissioner shall adopt rules and regulations to carry out the provisions
of this paragraph.
(I)
This paragraph shall stand repealed in its entirety on July 1,
2007;"
SECTION
3.
This
Act shall become effective July 1, 2006.
SECTION
4.
All
laws and parts of laws in conflict with this Act are repealed.