07 LC 18 6012
House
Bill 194
By:
Representatives Burkhalter of the
50th,
Ehrhart of the
36th,
Harbin of the
118th,
and Abdul-Salaam of the
74th
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 imposition, rate, computation, and exemptions regarding
state income taxation, so as to change certain provisions regarding income tax
credits for employers providing approved retraining programs; to provide for a
definition; 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 imposition, rate, computation, and exemptions regarding state income
taxation, is amended by revising Code Section 48-7-40.5, relating to tax credits
for employers providing approved retraining programs, 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 taxpayer´s 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 from the close of the taxable
year in which the tax credit was granted to a period ending December 31, 2008.
The tax credit granted to any qualifying airline pursuant to this Code section
shall not exceed the amount of the taxpayer´s 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, 2001, which have been
claimed for a taxable year ending on or before December 31, 2001, and which are
available to be carried forward to a taxable year ending after December 31,
2001, may be taken in whole or in part as a credit against a qualifying
airline´s quarterly or monthly payment required to be made under Code
Section 48-7-103 on or after the first calendar quarter beginning on or after
the effective date of this subsection. The taxpayer may file an election with
the commissioner to take such credit in whole or in part 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 taxpayer´s 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 period during which a credit may be carried forward under
paragraph (2) of subsection (c) of this Code section; and
(2)
Each employee whose employer receives credit against such qualifying
airline´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.
(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 upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.