08 LC 18
7379S
House
Bill 1246 (COMMITTEE SUBSTITUTE)
By:
Representatives Peake of the
137th,
Royal of the
171st,
and Parrish of the
156th
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 taxes, so as to change certain provisions regarding income tax
credits for certain business enterprises by including broadcasting; to change
certain provisions regarding income tax credits for business enterprises in less
developed areas by including broadcasting; to change certain provisions
regarding income tax credits for qualified research expenses by including
broadcasting; to change certain provisions regarding alternative tax credits for
base year port traffic increases by including broadcasting; to change certain
provisions regarding income tax credits for existing business enterprises
undergoing qualified business expansion by including broadcasting; to change
certain provisions regarding income tax credits to business enterprises for
leased motor vehicles by including broadcasting; 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.
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 taxes,
is amended by revising subsection (a) and paragraph (2) of subsection (e) of
Code Section 48-7-40, relating to income tax credits for certain business
enterprises, as follows:
"(a)
As used in this Code section, the term:
(1)
'Broadcasting' means the transmission or licensing of audio, video, text, or
other programming content to the general public, subscribers, or to third
parties via radio, television, cable, satellite, or the Internet or Internet
Protocol and includes motion picture and sound recording, editing, production,
postproduction, and distribution. 'Broadcasting' includes, but is not limited
to, establishments classified under the 2007 North American Industry
Classification System Codes 515, broadcasting; 516, Internet publishing and
broadcasting; 517, telecommunications; and 512, motion picture and sound
recording industries.
(1)(2)
'Business enterprise' means any business or the headquarters of any such
business which is engaged in manufacturing, warehousing and distribution,
processing, telecommunications,
broadcasting,
tourism, and research and development industries. Such term shall not include
retail businesses.
(2)(3)
'Existing business enterprise' means any business or the headquarters of any
such business which has operated for the immediately preceding three years a
facility in this state which is engaged in manufacturing, warehousing and
distribution, processing, telecommunications,
broadcasting,
tourism, or research and development industries. Such term shall not include
retail businesses."
"(2)
Existing business enterprises
as defined
under paragraph (2) of subsection (a) of this Code
section shall be allowed an additional tax
credit for taxes imposed under this article equal to $500.00 per eligible new
full-time employee job for one year after the creation of such job. The
additional credit shall be claimed in year two after the creation of such job.
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.
In tier 1 counties, those existing business enterprises that increase employment
by five or more shall be eligible for the credit. In tier 2 counties, only
those existing business enterprises that increase employment by ten or more
shall be eligible for the credit. In tier 3 counties, only those existing
business enterprises that increase employment by 15 or more shall be eligible
for the credit. In tier 4 counties, only those existing business enterprises
that increase employment by 25 or more shall be eligible for the credit. The
average wage of the new jobs created must be above the average wage of the
county that has the lowest average 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 paragraph, the employer must make health insurance coverage available
to the employee filling the new full-time job; provided, however, that nothing
in this paragraph 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 paragraph 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 the number
required in such tier. Any credit received for years prior to the year in which
the net employment increase falls below the number required in such tier 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 the
number required in such tier. This paragraph shall apply only to new eligible
full-time jobs created in taxable years beginning on or after January 1, 2006,
and ending no later than taxable years beginning prior to January 1,
2011."
SECTION
2.
Said
article is further amended by revising subsection (a) of Code Section 48-7-40.1,
relating to tax credits for business enterprises in less developed areas, as
follows:
"(a)
As used in this Code section, the
term:
(1)
'Broadcasting' means the transmission or licensing of audio, video, text, or
other programming content to the general public, subscribers, or to third
parties via radio, television, cable, satellite, or the Internet or Internet
Protocol and includes motion picture and sound recording, editing, production,
postproduction, and distribution. 'Broadcasting' includes, but is not limited
to, establishments classified under the 2007 North American Industry
Classification System Codes 515, broadcasting; 516, Internet publishing and
broadcasting; 517, telecommunications; and 512, motion picture and sound
recording industries.
(2)
'Business
'business
enterprise' means any business or the headquarters of any such business which is
engaged in manufacturing, warehousing and distribution, processing,
telecommunications,
broadcasting,
tourism, and research and development industries. Such term shall not include
retail businesses."
SECTION
3.
Said
article is further amended by revising subsection (a) of Code Section
48-7-40.12, relating to tax credits for qualified research expenses, as
follows:
"(a)
As used in this Code section, the term:
(1)
'Base amount' means the product of a business enterprise´s Georgia taxable
net income in the current taxable year and the average of the ratios of its
aggregate qualified research expenses to Georgia taxable net income for the
preceding three taxable years or 0.300, whichever is less.
(2)
'Broadcasting' means the transmission or licensing of audio, video, text, or
other programming content to the general public, subscribers, or to third
parties via radio, television, cable, satellite, or the Internet or Internet
Protocol and includes motion picture and sound recording, editing, production,
postproduction, and distribution. 'Broadcasting' includes, but is not limited
to, establishments classified under the 2007 North American Industry
Classification System Codes 515, broadcasting; 516, Internet publishing and
broadcasting; 517, telecommunications; and 512, motion picture and sound
recording industries.
(2)(3)
'Business enterprise' means any business or the headquarters of any such
business which is engaged in manufacturing, warehousing and distribution,
processing, telecommunications,
broadcasting,
tourism, and research and development industries. Such term shall not include
retail businesses.
(3)(4)
'Qualified research expenses' means qualified research expenses for any business
enterprise as that term is defined in Section 41 of the Internal Revenue Code of
1986, as amended, except that all wages paid and all purchases of services and
supplies must be for research conducted within the State of
Georgia."
SECTION
4.
Said
article is further amended by revising subsection (a) of Code Section
48-7-40.15, relating to alternative tax credits for base year port traffic
increases, as follows:
"(a)
As used in this Code section, the term:
(1)
'Base year port traffic' means the total amount of net tons, containers, or
twenty-foot equivalent units (TEU´s), of product actually transported by
way of a waterborne ship or vehicle through a port facility during the period
from January 1, 1997, through December 31, 1997; provided, however, that in the
event the total amount actually transported during such period was not at least
75 net tons, five containers, or ten twenty-foot equivalent units (TEU´s),
then 'base year port traffic' means 75 net tons, five containers, or ten
twenty-foot equivalent units (TEU´s).
(2)
'Broadcasting' means the transmission or licensing of audio, video, text, or
other programming content to the general public, subscribers, or to third
parties via radio, television, cable, satellite, or the Internet or Internet
Protocol and includes motion picture and sound recording, editing, production,
postproduction, and distribution. 'Broadcasting' includes, but is not limited
to, establishments classified under the 2007 North American Industry
Classification System Codes 515, broadcasting; 516, Internet publishing and
broadcasting; 517, telecommunications; and 512, motion picture and sound
recording industries.
(2)(3)
'Business enterprise' means any business or the headquarters of any such
business which is engaged in manufacturing, warehousing and distribution,
processing, telecommunications,
broadcasting,
tourism, and research and development industries but shall not include retail
businesses.
(3)(4)
'Port facility' means any privately owned or publicly owned facility located
within this state through which product is transported by way of a waterborne
ship or vehicle to or from destinations outside this state.
(4)(5)
'Port traffic' means the total amount of net tons, containers, or twenty-foot
equivalent units (TEU´s) of product transported by way of a waterborne ship
or vehicle through a port facility.
(5)(6)
'Product' means a marketable product or component of a product which has an
economic value to the wholesale or retail consumer and is ready to be used
without further alteration of its form or a product or material which is
marketed as a prepared material or is a component in the manufacturing and
assembly of other finished products.
(6)(7)
'Qualified investment property' means all real and personal property purchased
or acquired by a taxpayer for use in the construction of an additional
manufacturing or telecommunications facility to be located in this state or in
the expansion of an existing manufacturing or telecommunications facility
located in this state, including, but not limited to, moneys expended on land
acquisition, improvements, buildings, building improvements, and machinery and
equipment to be used in the manufacturing or telecommunications facility. The
department shall promulgate rules defining eligible manufacturing facilities,
telecommunications facilities, and qualified investment property pursuant to
this Code section."
SECTION
5.
Said
article is further amended by revising subsection (a) of Code Section
48-7-40.21, relating to tax credits for existing business enterprises undergoing
qualified business expansion, as follows:
"(a)
As used in this Code section, the term:
(1)
'Broadcasting' means the transmission or licensing of audio, video, text, or
other programming content to the general public, subscribers, or to third
parties via radio, television, cable, satellite, or the Internet or Internet
Protocol and includes motion picture and sound recording, editing, production,
postproduction, and distribution. 'Broadcasting' includes, but is not limited
to, establishments classified under the 2007 North American Industry
Classification System Codes 515, broadcasting; 516, Internet publishing and
broadcasting; 517, telecommunications; and 512, motion picture and sound
recording industries.
(1)(2)
'Existing business enterprise' means any business or the headquarters of any
such business which is engaged in manufacturing, warehousing and distribution,
processing, telecommunications,
broadcasting,
tourism, or research and development industries that has been in operation in
this state for at least five years. Such term shall not include retail
businesses.
(2)(3)
'Qualified business expansion' means the creation of at least 500 new full-time
jobs within a taxable year."
SECTION
6.
Said
article is further amended by revising subsection (a) of Code Section
48-7-40.22, relating to income tax credits to business enterprises for leased
motor vehicles, as follows:
"(a)
As used in this Code section, the term:
(1)
'Broadcasting' means the transmission or licensing of audio, video, text, or
other programming content to the general public, subscribers, or to third
parties via radio, television, cable, satellite, or the Internet or Internet
Protocol and includes motion picture and sound recording, editing, production,
postproduction, and distribution. 'Broadcasting' includes, but is not limited
to, establishments classified under the 2007 North American Industry
Classification System Codes 515, broadcasting; 516, Internet publishing and
broadcasting; 517, telecommunications; and 512, motion picture and sound
recording industries.
(1)(2)
'Business enterprise' means any business or the headquarters of any such
business which is engaged in manufacturing, warehousing and distribution,
processing, telecommunications,
broadcasting,
tourism, research and development industries, child care businesses, or retail
businesses.
(2)(3)
'Headquarters' means the principal central administrative office of a
taxpayer.
(3)(4)
'Tier' means a tier as designated pursuant to Code Section 48-7-40, as
amended."
SECTION
7.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval and shall be applicable to all taxable years
beginning on or after January 1, 2008.
SECTION
8.
All
laws and parts of laws in conflict with this Act are repealed.