08 LC 35
0770
House
Bill 1188
By:
Representatives Byrd of the
20th,
Pruett of the
144th,
and Hill of the
21st
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
create and establish the "Georgia Science Education and Employment Development
Act"; to amend Code Section 48-1-2 of the Official Code of Georgia Annotated,
relating to definitions for revenue and taxation, so as to provide a definition
for life sciences; to amend Code Section 48-2-12 of the Official Code of Georgia
Annotated, relating to the rules and regulations applicable to the Department of
Revenue, so as to prohibit duplicate taxation of certain venture capital
revenues that pass through payments and credits to nonresidents and have the
effect of discouraging venture capital investment companies from locating in
this state; to amend Chapter 7 of Title 48 of the Official Code of Georgia
Annotated, relating to income taxes, so as to provide that Georgia taxable net
income of certain taxpayers shall not include income which is attributable
directly to a life sciences business of any taxpayer which has been relocated
from another state for the first 12 months; to provide for an exemption for
certain educational grants, scholarships, gifts, or awards; 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 taxes, so as to provide for an
income tax credit for qualified investments in research and development
conducted in Georgia; to provide for a short title; to provide for legislative
findings and intent; to provide for definitions; to provide for conditions and
limitations; to provide for powers, duties, and authority of the state revenue
commissioner with respect to the foregoing; to provide for an income tax credit
for the sale of biomass materials and alternative fuels grown or produced in
Georgia; to provide for a short title; to provide for conditions and
limitations; to provide for powers, duties, and authority of the state revenue
commissioner; to provide for a tax credit for certain employers who employ
students; to provide for conditions and procedures regarding such tax credit; to
define certain terms; to amend Code Section 48-13-71 of the Official Code of
Georgia Annotated, relating to organizations and companies exempt from corporate
net worth tax, so as to exempt life sciences corporations transferring to
Georgia for the first 12 months; to provide for conditions and limitations; to
provide for definitions; 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.
This
Act shall be known and may be cited as the "Georgia Science Education and
Employment Development Act of 2008."
SECTION
2.
Code
Section 48-1-2 of the Official Code of Georgia Annotated, relating to
definitions for revenue and taxation is amended by renumbering paragraphs (16)
through (26) as paragraphs (17) through (27) respectively, and adding a new
paragraph (16) to read as follows:
"(16)
'Life sciences' means research, development, and commercialization directly
related to the use of compositions, methods, and organisms in cellular and
molecular research, development, and manufacturing processes in areas such as
pharmaceuticals, agriculture, homeland security, medical therapeutics, medical
diagnostics, medical devices, veterinary medicine, plant biology, and
microbiology; development and qualitative improvement in the areas of medical
sciences, pharmaceutical sciences, environmental protection, biological
sciences, zoology, botany, horticulture, ecology, toxicology, organic chemistry,
physical chemistry, and physiology; and technological developments in the areas
of molecular biology, genomics, proteomics, physiomics, nanotechnology,
biodefense, biocomputing, bioinformatics, and other developments associated with
biotechnology."
SECTION
3.
Code
Section 48-2-12 of the Official Code of Georgia Annotated, relating to the rules
and regulations applicable to the Department of Revenue, is amended by adding a
new subsection to read as follows:
"(e)
The commissioner shall not be authorized to provide by rule and regulation for
the taxation of any pass through or intermediary funding or payments conducted
by any individual, business, corporation, or other entity in this state whether
in the form of a cash payment, a periodic or special distribution, distribution
of other property, a credit to an individual or entity in lieu of such payment,
or an individual´s or entity´s distributive share of income or other
gain that is passed through, distributed, or credited to any nonresident
partnership, business corporation, or individual. Any such rule or regulation
to the contrary shall be null and void."
SECTION
4.
Chapter
7 of Title 48 of the Official Code of Georgia Annotated, relating to income
taxes is amended in subsection (a) of Code Section 48-7-27 of the Official Code
of Georgia Annotated, relating to computation of taxable net income, by
replacing "; and" at the end of paragraph (14) with a semicolon, replacing the
period at the end of paragraph (15) with "; and", and adding a new paragraph to
read as follows:
"(16)
The amount of funds paid to a taxpayer in the form of educational grants,
scholarships, or other educational funding gifts or awards where such funds were
expended for the purpose of attending any educational course offered by a
university or college in Georgia to the extent that such amount was included in
the taxpayer´s federal adjusted gross income."
SECTION
5.
Said
chapter is further amended by striking subsection (e), which is reserved, and
adding a new subsection (e) at the end of Code Section 48-7-27, relating to
computation of taxable net income, to read as follows:
"(e)
Georgia taxable net income shall not include any income of a taxpayer which is
attributable directly to a life sciences business of the taxpayer which has
relocated its primary place of business or business headquarters from another
state or foreign state to the State of Georgia. The exclusion provided for
under this subsection shall commence on the date that the business is relocated
to Georgia and begins operations and shall continue for the ensuing 12 months or
until such date that the business transfers its primary place of business or
business headquarters from Georgia or otherwise ceases business operations in
Georgia, whichever shall first occur. A life sciences business enterprise
planning or undergoing a qualified business transfer to Georgia shall be
eligible to make application to the commissioner for the income tax exemption.
The department shall be authorized to determine eligibility for the income tax
exemption ensuring that a business is a life sciences business and has
transferred its business to this state."
SECTION
6.
Said
chapter is further amended by adding a new subsection (f) at the end of Code
Section 48-7-31, relating to taxation of corporations, to read as
follows:
"(f)
Georgia taxable net income of a corporation shall not include any income of such
corporation which is attributable directly to the business of the corporation
which has been relocated from another state or foreign state to the State of
Georgia where such corporation is a life sciences corporation. The exclusion
provided for under this subsection shall commence on the date that the
corporation is relocated to Georgia and begins operations and shall continue for
the ensuing 12 months or until such date that the corporation transfers its
primary place of business or corporate headquarters from Georgia or otherwise
ceases corporate operations in Georgia, whichever shall first occur. A life
sciences corporation planning or undergoing a qualified business transfer to
Georgia shall be eligible to make application to the commissioner for the income
tax exemption. The department shall be authorized to determine eligibility for
the income tax exemption ensuring that a corporation is a life sciences
corporation and has transferred a corporation to this state."
SECTION
7.
Article
2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating
to the imposition, rate, and computation of income taxes, is amended by adding
new Code sections to read as follows:
"48-7-40.27.
(a)
This Code section shall be known and may be cited as the 'Georgia Research and
Development Investor Tax Credit.'
(b)
The legislature finds that the welfare of this state is enhanced by the research
and development of new discoveries in Georgia and that the eventual
commercialization of Georgia research and development in a healthy
entrepreneurial business environment creates jobs and strengthens Georgia´s
economy. Ready sources of capital necessary to support research and
development are not currently available in the State of Georgia. This Code
section is enacted for the purpose of facilitating the availability of equity
investment in Georgia research and commercial development to expand
Georgia´s economy by enlarging its base of wealth, creating businesses, and
supporting the efforts of Georgia researchers and educators.
(c)
As used in this Code section, the term 'qualified investment' means a
contribution of cash or a cash equivalent for the purpose of the research and
development of innovative devices and discoveries by individuals, universities,
colleges, or businesses, both private and public; provided, however, that a
qualified investment shall only qualify for the credit provided by this Code
section if such research and development is conducted in Georgia and is based
upon reasonable and accepted scientific methods and practices. Qualified
investments may be secured or unsecured and may be made at risk of loss or made
as a gift, grant, or scholarship. Qualified investment also means a
contribution of a cash or cash equivalent by a pass through or intermediary
entity domiciled in the State of Georgia.
(d)
There shall be allowed to each person or entity making a qualified investment
who is subject to the taxes imposed by this chapter a tax credit that shall be
deductible from the investor´s net income tax liability, if any, for the
taxable year in which the investment was made in an amount of 50 percent of the
qualified investment made by the taxpayer in each qualified
investment.
(e)
In the event that the total amount of the tax credit under this Code section for
a taxable year exceeds the taxpayer´s income tax liability, any unused tax
credit shall be allowed the taxpayer against the next two succeeding years´
tax liabilities. No such tax credit shall be allowed the taxpayer against prior
years´ tax liabilities.
(f)
The commissioner shall be authorized to promulgate any rules and regulations
necessary to implement and administer the provisions of this Code
section.
48-7-40.28.
(a)
This Code section shall be known and may be cited as the 'Biofuel Tax
Credit.'
(b)
As used in this Code section, the term:
(1)
'Alternative fuel facility' means any facility located in this state which is
primarily dedicated to the production, processing, and sale of ethanol,
biodiesel, butanol, and their by-products.
(2)
'Biomass materials' means any agricultural product or animal waste or by-product
grown or produced in Georgia that is used in or for the production and
processing of ethanol, biodiesel, butanol, and their by-products, including
agricultural products, forestry products, animal fat by-products, or the wastes
of such products.
(c)
There shall be allowed to each person or entity who sells qualified biomass
material or alternative fuels produced in a qualified alternative fuel facility
and who is subject to the taxes imposed by this chapter a tax credit in the
amount of 10 percent of the sale.
(d)
In the event that the total amount of the tax credit under this Code section for
a taxable year exceeds the taxpayer´s income tax liability, any unused tax
credit shall be allowed the taxpayer against the next two succeeding years´
tax liabilities. No such tax credit shall be allowed the taxpayer against prior
years tax liabilities.
(e)
The commissioner shall promulgate any rules and regulations necessary to
implement and administer this Code section."
SECTION
8.
Article
2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating
to imposition and rate of income taxes, is amended by adding a new Code section
to read as follows:
"48-7-43.
(a)
As used in this Code section, the term:
(1)
'Employer' means any employer upon whom an income tax is imposed by this
chapter; provided, however, that a significant component of the employer´s
business must include scientific research, development, or
invention.
(2)
'Employment' means any job, whether part time or full time, or any internship
program whereby educational credit is provided by the student´s educational
institution, which job or internship includes the application of scientific
methods.
(3)
'Student' means a person under the age of 25 years who has been enrolled in a
public or private postsecondary or high school educational institution in this
state during the previous nine months, who is in good standing for continued
enrollment, and who, during the taxable year, remained enrolled in an
educational institution for a minimum of nine months and while enrolled has
attempted at least 15 quarter hours or 12 semester hours.
(b)
A tax credit against the tax imposed by this chapter shall be granted to an
employer who first provides employment for a student on or after April 15, 2008.
The amount of the tax credit shall be 100 percent of the wages paid to any such
student; provided, however, that such tax credit may not exceed $25,000.00 per
student.
(c)
The tax credit granted under this Code section shall not exceed the amount of
the employer´s income tax liability for the taxable year as computed
without regard to this Code section. Any such excess tax credit may be carried
over and claimed during the five-year period after the taxable year for which
the tax credit is claimed until such tax credit is exhausted. No such tax
credit shall be allowed the taxpayer against prior years´ tax
liabilities.
(d)
To be eligible to claim the tax credit granted under this Code section, the
employer shall certify to the department the name of the employed student;
include a letter from the student´s educational institution evidencing that
such student has attempted the requisite number of quarter or semester hours
during the taxable year; provide written evidence of the student´s wages,
which may include, but not be limited to, copies of the student´s W-2 forms
prepared by or for the employer; and furnish such other information as may be
required by the department to ensure that tax credits are only granted to
employers who provide employment for bona fide students pursuant to this Code
section. The department shall adopt rules and regulations and forms to
implement this tax credit program."
SECTION
9.
Code
Section 48-13-71 of the Official Code of Georgia Annotated, relating to
organizations and companies exempt from corporate net worth tax, is amended by
striking "and" at the end of paragraph (1), striking the period and inserting ";
and" at the end of paragraph (2), and adding a new paragraph to read as
follows:
"(3)
Any life sciences organization, business, corporation, or company that has
transferred its primary business operations or headquarters from another state
or foreign state to the State of Georgia for the first 12 months of operation in
Georgia, as determined by the department."
SECTION
10.
This
Act shall become effective January 1, 2009, and shall be applicable to all
taxable years beginning on or after January 1, 2009.
SECTION
11.
All
laws and parts of laws in conflict with this Act are repealed.