Georgia House of Representatives - 1995/1996 Sessions

HB 4 - Income tax credit; household and dependent care expenses

Page Numbers - 1/ 2

Code Sections - 48-7-29/ 48-7-29

1. Buck  135th            2. Royal  164th            3. Jamieson  22nd
4. Skipper  137th         5. Culbreth  132nd         6. Smith  175th


House Comm: W&M        /                Senate Comm:            /                                   
House Vote: Yeas       Nays             Senate Vote: Yeas     Nays                                  
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               House          Action         Senate                                                 
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              1/9/95   Read 1st Time                                                                
              1/10/95  Read 2nd Time                                                                
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Rules Suspended to Introduce                                                                        
                                                                                                    
Code Sections amended: 48-7-29                                                                      


HB 4                                              LC 18 6409






                        A BILL TO BE ENTITLED
                               AN ACT


  1- 1  To amend Article 2 of Chapter 7 of Title 48 of the Official
  1- 2  Code of Georgia Annotated, relating to imposition, rate, and
  1- 3  computation of income taxes, so as to provide for a credit
  1- 4  for household and dependent care expenses; to provide for
  1- 5  procedures; to provide for limitations; to provide for
  1- 6  special rules; to provide an effective date; to provide for
  1- 7  applicability; to repeal conflicting laws; and for other
  1- 8  purposes.

  1- 9       BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

                         SECTION 1.

  1-10  Article 2 of Chapter 7 of Title 48 of the Official Code of
  1-11  Georgia Annotated, relating to imposition, rate, and
  1-12  computation of income taxes, is amended by striking Code
  1-13  Section 48-7-29, which reads as follows:

  1-14    "48-7-29. (Index)

  1-15    Reserved.",

  1-16  and inserting in its place a new Code Section 48-7-29 to
  1-17  read as follows:

  1-18    "48-7-29. (Index)

  1-19    (a) Definition. As used in this Code section, the term
  1-20    'qualifying individual' means any dependent as the term
  1-21    'dependent' is defined for purposes of paragraph (3) of
  1-22    subsection (b) of Code Section 48-7-26, other than a minor
  1-23    child.

  1-24    (b) Allowance of credit. In the case of a resident
  1-25    individual who maintains a household which includes as a
  1-26    member one or more qualifying individuals, there shall be
  1-27    allowed as a credit against the tax imposed under Code
  1-28    Section 48-7-20 for the taxable year an amount equal to 2
  1-29    percent of the employment related expenses paid by the
  1-30    individual during the taxable year.




                                 -1- (Index)

                                                  LC 18 6409

  2- 1    (c) Limit on amount creditable. The amount of the
  2- 2    employment related expenses incurred during any taxable
  2- 3    year which may be taken into account under subsection (b)
  2- 4    of this Code section shall not exceed:

  2- 5      (1) Two thousand dollars if there is one qualifying
  2- 6      individual with respect to the taxpayer for the taxable
  2- 7      year; or

  2- 8      (2) Four thousand dollars if there are two or more
  2- 9      qualifying individuals with respect to the taxpayer for
  2-10      the taxable year.

  2-11    (d) Earned income limitation. Except as otherwise provided
  2-12    in this Code section, the amount of the employment related
  2-13    expenses incurred during any taxable year which may be
  2-14    taken into account under subsection (b) of this Code
  2-15    section shall not exceed:

  2-16      (1) In the case of an individual who is not married at
  2-17      the close of the year, the individual's earned income
  2-18      for the year; or

  2-19      (2) In the case of an individual who is married at the
  2-20      close of the year, the lesser of the individual's earned
  2-21      income or the earned income of the individual's spouse
  2-22      for the year.

  2-23    (e) Special rules. For purposes of this Code section, an
  2-24    individual shall be treated as maintaining a household for
  2-25    any period only if over half the cost of maintaining the
  2-26    household for the period is furnished by the individual.
  2-27    If the taxpayer is married at the close of the taxable
  2-28    year, the credit shall be allowed under subsection (b) of
  2-29    this Code section only if the taxpayer and the taxpayer's
  2-30    spouse file a joint return for the taxable year."

                         SECTION 2.

  2-31  This Act shall become effective on January 1, 1995, and
  2-32  shall be applicable to all taxable years beginning on or
  2-33  after that date.

                         SECTION 3.

  2-34  All laws and parts of laws in conflict with this Act are
  2-35  repealed.






                                 -2- (Index)