08
LC 18 7075S
House
Bill 851 (COMMITTEE SUBSTITUTE)
By:
Representatives Peake of the
137th,
Martin of the
47th,
Royal of the
171st,
Stephens of the
164th,
Parrish of the
156th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-7-29.8 of the Official Code of Georgia Annotated, relating
to income tax credits for the certified rehabilitation of historic structures,
so as to change the method of calculation of the tax credit; to remove the cap
on the amount of credits; to authorize the transfer or assignment of tax credits
one time under certain circumstances; to provide that proceeds received by the
taxpayer for the assignment or sale of tax credits shall be exempt from taxation
as income; to provide for an effective date and applicability; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-7-29.8 of the Official Code of Georgia Annotated, relating to income
tax credits for the certified rehabilitation of historic structures, is amended
by revising subsection (b) as follows:
"(b)
A taxpayer shall be allowed a tax credit against the tax imposed by this chapter
for the taxable year in which the certified rehabilitation is
completed:
(1)
In the case of a historic home, equal to
10
25
percent of qualified rehabilitation expenditures, except that, in the case of a
historic home located within a target area, an additional credit equal to 5
percent of qualified rehabilitation expenditures shall be allowed;
and
(2)
In the case of any other certified structure, equal to
20
25
percent of qualified rehabilitation expenditures."
SECTION
2.
Said
Code section is further amended by revising subsection (c) as
follows:
"(c)(1)
In no event shall credits for a historic home
or
certified structure exceed
$5,000.00
$100,000.00
in any 120 month period.
(2)
In no event shall credits for a certified structure exceed $300,000.00 in any
120 month period."
SECTION
3.
Said
Code section is further amended by adding a new subsection to read as
follows:
"(c.1)
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 one time only 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."
SECTION
4.
Said
Code section is further amended by adding a new subsection to read as
follows:
"(h.1)
Any proceeds received by the taxpayer from the transfer or sale of the tax
credits under subsection (c.1) of this Code section shall not constitute income
for purposes of determining the taxpayer´s taxable net income under this
chapter."
SECTION
5.
Said
Code section is further amended by revising subsection (i) as
follows:
"(i)
The tax credit allowed under this Code section, and any recaptured tax credit,
shall be allocated among some or all of the partners, members, or shareholders
of the entity owning the project
or any entity
to which the tax credit has been transferred or sold under subsection (c.1) of
this Code section in any manner agreed to
by such persons, whether or not such persons are allocated or allowed any
portion of any other tax credit with respect to the project."
SECTION
6.
This
Act shall become effective on January 1, 2009, and shall apply to all taxable
years beginning on or after that date.
SECTION
7.
All
laws and parts of laws in conflict with this Act are repealed.