08 HB
1273/AP
House
Bill 1273 (AS PASSED HOUSE AND SENATE)
By:
Representative Fleming of the
117th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-7-40.1 of the Official Code of Georgia Annotated, relating
to income tax credits for businesses creating new jobs in less developed areas,
so as to change the criteria for determination of what constitutes a less
developed area; to change provisions relating to the number of new jobs created
as a criterion for eligibility for credits; to provide for related matters; to
provide for an effective date and applicability; to repeal conflicting laws; and
for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-7-40.1 of the Official Code of Georgia Annotated, relating to income
tax credits for businesses creating new jobs in less developed areas, is amended
by revising paragraph (4) of subsection (c) and subsection (e) as
follows:
"(4)
Any area
comprised
of two
which is
within or adjacent to one or more
contiguous census block groups with a poverty rate of
20
15
percent or greater as determined from data in the most current United States
decennial census, where the area is also included within a state enterprise zone
pursuant to Chapter 88 of Title
36,
or
where a redevelopment plan has been adopted pursuant to Chapter 61 of Title
36,
and which, in the opinion of the commissioner of community affairs, displays
pervasive poverty, underdevelopment, general distress, and
blight."
"(e)
Business enterprises in areas designated by the commissioner of community
affairs as less developed areas shall be allowed a job tax credit for taxes
imposed under this article equal to $3,500.00 annually per eligible new
full-time employee job for five years beginning with years two through six after
the creation of such job; provided, however, that where the amount of such
credit exceeds a business enterprise´s liability for such taxes in a
taxable year, the excess may be taken as a credit against such business
enterprise´s quarterly or monthly payment under Code Section 48-7-103 but
not to exceed in any one taxable year $3,500.00 for each new full-time employee
job when aggregated with the credit applied against taxes under this article.
Each employee whose employer receives credit against such business
enterprise´s 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. The
number of new full-time jobs shall be determined by comparing the monthly
average number of full-time employees subject to Georgia income tax withholding
for the taxable year with the corresponding period of the prior taxable year.
Only those business enterprises that increase employment by five or more in a
less developed area shall be eligible for the
credit;
provided, however, that within areas of pervasive poverty as designated under
paragraphs (2) and (4) of subsection (c) of this Code section businesses shall
only have to increase employment by two or more jobs in order to be eligible for
the credit, provided that, if a business only increases employment by two jobs,
the persons hired for such jobs shall not be married to one
another. The average wage of the new jobs
created must be above the average wage of the county that has the lowest wage of
any county in the state to qualify as reported in the most recently available
annual issue of the Georgia Employment and Wages Averages Report of the
Department of Labor. To qualify for a credit under this subsection, the employer
must make health insurance coverage available to the employee filling the new
full-time job; provided, however, that nothing in this subsection shall be
construed to require the employer to pay for all or any part of health insurance
coverage for such an employee in order to claim the credit provided for in this
subsection if such employer does not pay for all or any part of health insurance
coverage for other employees. Credit shall not be allowed during a year if the
net employment increase falls below five
or two, as
applicable. Any credit received for years
prior to the year in which the net employment increase falls below five
or
two shall not be affected. The state
revenue commissioner shall adjust the credit allowed each year for net new
employment fluctuations above the minimum level of five
or
two."
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, 2008.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.