08 LC 18
7138
House
Bill 1249
By:
Representatives Lewis of the
15th,
Martin of the
47th,
Millar of the
79th,
Stephens of the
164th,
and Loudermilk of the
14th
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, and computation of income taxes, so as
to provide for an income tax credit with respect to solar energy technology
manufacturing facilities; to provide for definitions; to provide for procedures,
conditions, and limitations; to provide for powers, duties, and authority of the
state revenue commissioner; to provide for 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, and computation of income taxes, is amended by adding a new
Code section to read as follows:
"48-7-40.27.
(a)
As used in this Code section, the term:
(1)
'Full-time employee job' and 'full-time job' means employment of an individual
which:
(A)
Is located in this state at the site of a qualified business or the
manufacturing facility resulting therefrom;
(B)
Involves a regular work week of 35 hours or more;
(C)
Has no predetermined end date; and
(D)
Pays at or above the average wage of the county with the lowest average wage in
the state, as reported in the most recently available annual issue of the
Georgia Employment and Wages Averages Report of the Department of
Labor.
(2)
'Manufacturing equipment' means an essential machine, mechanism, or tool or a
component of an essential machine, mechanism, or tool used directly and
exclusively in a qualified business´s manufacturing operation and that is
subject to depreciation pursuant to the Internal Revenue Code of 1986 by the
taxpayer carrying on the manufacturing, provided that manufacturing equipment
does not include a vehicle that leaves the site of a manufacturing operation for
the purpose of transporting persons or property.
(3)
'Qualified business' means a solar energy company that establishes a new
headquarters or base of operations in this state or expands an existing
headquarters or base of operations in this state.
(4)
'Qualified expenditure' means an expenditure for the purchase of manufacturing
equipment made after July 1, 2008, by a taxpayer.
(5)
'Qualified research expenses' means qualified research expenses for any
qualified business as that term is defined in Section 41 of the Internal Revenue
Code of 1986 except that all wages paid and all purchases of services and
supplies must be for research conducted within the State of
Georgia.
(6)
'Solar energy company' means a company that has its headquarters or a base of
operations in this state and that is engaged in research, development,
production, or provision of solar energy technology for the purpose of
developing or providing products or processes for the commercial or public
purpose of generating electricity, directly or indirectly, by means of the
conversion of sunlight by photovoltaic cells or other technology or a person
whose headquarters or base of operations is located in this state and who is
engaged in providing services or products necessary for such research,
development, production, or provision.
(b)
Any qualified business that establishes a new headquarters or base of operations
in this state or expands an existing headquarters or base of operations in this
state shall be allowed a tax credit for taxes imposed under this article equal
to $5,500.00 annually per new eligible full-time employee job for five years
beginning with the year in which such job is created through year five after
such creation. 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.
(c)
The number of new full-time jobs to which this Code section shall be applicable
shall be determined each month by comparing the number of full-time employees
subject to Georgia income tax withholding as of the last payroll period of such
month or as of the payroll period during each month used for the purpose of
reports to the Department of Labor with the number of such employees for the
previous month.
(d)
The sale, merger, acquisition, or bankruptcy of any business enterprise shall
not create new eligibility in any succeeding business entity, but any unused job
tax credit may be transferred and continued by any transferee of the business
enterprise.
(e)
To qualify for the credit provided by this Code section a new full-time job must
be created by the close of the seventh taxable year following the business
enterprise´s withholding start date. In no event may a credit be claimed
under this Code section for more than 3,300 new full-time employee jobs created
by any one project; provided, however, that the taxpayer may claim the credits
provided by Code Sections 48-7-40 and 48-7-40.1 for any such additional jobs if
the taxpayer meets the terms and conditions thereof.
(f)
A tax credit in an amount not to exceed 15 percent of any qualified expenditure
is allowed a qualified business which has qualified expenditures in Georgia in a
taxable year.
(g)
A tax credit in an amount not to exceed 75 percent of the qualified research
expenses is allowed a qualified business which has qualified research expenses
in Georgia in a taxable year, provided that the qualified business is allowed a
research credit under Section 41 of the Internal Revenue Code of 1986. Such
credit may be taken in the same manner as the credit provided for by subsection
(b) of this Code section.
(h)
Where the amount of any credit allowed under this Code section exceeds a
qualified business´s liability for such taxes in a taxable year, the excess
may be taken as a credit against such qualified business´s quarterly or
monthly payment under Code Section 48-7-103 or against taxes imposed under
Chapter 8 of this title incurred in the construction, expansion, or operation of
such qualified business´s manufacturing facility. The taxpayer may file an
election with the commissioner to take such credit 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. Regardless of such election, the taxpayer may at any time request a
refund from the commissioner of taxes paid to the state under Chapter 8 of this
title, which refund shall be deducted from the amount available to be otherwise
credited under this Code section. For any one taxable year the amounts taken as
a credit against taxes imposed under subsection (b) of this Code section against
the qualified business´s quarterly or monthly payments under Code Section
48-7-103 or against taxes imposed under Chapter 8 of this title may not in the
aggregate exceed $5,500.00 per eligible full-time employee job. Each employee
whose employer receives credit against such qualified business´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.
(i)
No taxpayer shall be authorized to claim a credit for any job, qualified
expenditure, or qualified research expense under this Code section if such
taxpayer claims a credit for such job, qualified expenditure, or qualified
research expense under any other provision of this article."
SECTION
2.
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
3.
All
laws and parts of laws in conflict with this Act are repealed.