07 LC 18
6270
House
Bill 670
By:
Representative Sims of the
169th
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 the imposition, rate, and computation of income tax, so
as to provide for an income tax credit with respect to wood residuals; to
provide for conditions and limitations; to provide for powers, duties, and
authority of the state revenue commissioner and the commissioner of natural
resources with respect to the foregoing; 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 the imposition, rate, and computation of income tax, is amended by adding a
new Code section to read as follows:
"48-7-29.13.
(a)
As used in this Code section, the term 'wood residuals' means wood residuals
that are supplied to a business establishment retaining a solid waste permit for
the purposes of recycling so that such material may be used to create energy or
be used for marketable reuse.
(b)
A taxpayer who hauls or transports wood residuals shall be allowed a credit
against the tax imposed by this chapter in an amount not to exceed the actual
amount certified by the Department of Natural Resources to the taxpayer. Such
certification shall be based upon vouchers provided to the taxpayer by the solid
waste disposal permittee to whom the wood residuals are provided. The
Department of Natural Resources shall calculate and attribute a dollar value to
such wood residuals.
(c)
In no event shall the total amount of the tax credit under this Code section for
a taxable year exceed the taxpayer´s income tax liability. Any unused tax
credit shall be allowed the taxpayer against succeeding years´ tax
liability. No such credit shall be allowed the taxpayer against prior
years´ tax liability.
(d)
Any tax credits under this Code section earned by a taxpayer and previously
claimed but not used by such taxpayer against its income tax may be transferred
or sold in whole or in part by such taxpayer to another Georgia taxpayer,
subject to the following conditions:
(1)
The transferor shall submit to the department a written notification of any
transfer or sale of tax credits within 30 days after the transfer or sale of
such tax credits. The notification shall include such transferor´s tax
credit balance prior to transfer, the remaining balance after transfer, all tax
identification numbers for each transferee, the date of transfer, the amount
transferred, and any other information required by the department;
(2)
Failure to comply with this subsection shall result in the disallowance of the
tax credit until the taxpayer is in full compliance;
(3)
In no event shall the amount of the tax credit under this subsection claimed and
allowed for a taxable year exceed the transferee´s income tax liability.
Any unused credit may be carried forward to subsequent taxable years provided
that the transfer or sale of this tax credit does not extend the time in which
such tax credit can be used. The carry-forward period for tax credit that is
transferred or sold shall begin on the date on which the tax credit was
originally earned; and
(4)
A transferee shall have only such rights to claim and use the tax credit that
were available to the transferor at the time of the transfer. To the extent
that such transferor did not have rights to claim or use the tax credit at the
time of the transfer, the department shall either disallow the tax credit
claimed by the transferee or recapture the tax credit from the transferee. The
transferee´s recourse is against the transferor.
(e)
The state revenue commissioner and the commissioner of natural resources shall
be authorized to promulgate any rules and regulations necessary to implement and
administer the provisions of this Code section."
SECTION
2.
This
Act shall become effective on January 1, 2008, and shall be applicable to all
taxable years beginning on or after that date.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.