07 LC 21
9303
House
Bill 447
By:
Representative O`Neal of the
146th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Title 48 of the Official Code of Georgia Annotated, relating to revenue
and taxation, so as to clarify state conformity with the federal treatment of
dividends received from real estate investment trusts and regulated investment
companies; to provide for an addition to federal taxable income for any amount
deducted to the extent it is attributable to a dividend received directly or
indirectly from a real estate investment trust or a regulated investment
company; 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.
Title
48 of the Official Code of Georgia Annotated, relating to revenue and taxation,
is amended by revising paragraph (8) and adding a new paragraph (15) of
subsection (b) of Code Section 48-7-21, relating to taxation of corporations, as
follows:
"(8)
There shall be subtracted from taxable income dividends received
by:
(A)
A corporation from sources outside the United States as defined in the Internal
Revenue Code of 1986. For purposes of this subparagraph, dividends received by a
corporation from sources outside of the United States shall include amounts
treated as a dividend and income deemed to have been received under provisions
of the Internal Revenue Code of 1986 by such corporation if such amounts could
have been subtracted from taxable income under this paragraph, had such amounts
actually been received. Amounts to be subtracted under this subparagraph shall
include the following, as defined by the Internal Revenue Code of
1986:
(i)
Qualified electing fund income;
(ii)
Subpart F income; and
(iii)
Income attributable to an increase in United States property by a controlled
foreign corporation.
The
amount subtracted under this subparagraph shall be reduced by any expenses
directly attributable to the dividend income; and
(B)
Corporations from affiliated corporations within the United States, when the
corporation receiving the dividends is engaged in business in this state and is
subject to the payment of taxes under the income tax laws of this state, to the
extent that the dividends have been included in net income under this Code
section. Dividends from affiliates shall be reduced by any expenses directly
attributable to the dividend income.
Dividends
received directly or indirectly from a real estate investment trust, as defined
and provided for in Sections 856 through 859 of the Internal Revenue Code of
1986, or from a regulated investment company, as defined and provided for in
Sections 851 through 855 of the Internal Revenue Code of 1986, shall not be
included as part of any dividends received as a deduction otherwise available
under this Code
section."
"(15)
There shall be added to taxable income any amount deducted in arriving at
federal taxable income under the Internal Revenue Code of 1986 to the extent
such deduction is attributable to a dividend received directly or indirectly
from a real estate investment trust as defined and provided for in Sections 856
through 859 of the Internal Revenue Code of 1986, or from a regulated investment
company, as defined and provided for in Sections 851 through 855 of the Internal
Revenue Code of 1986."
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, 2007.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.