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03 LC 19 5656
House Bill 209
By: Representatives Epps of the 90th, Howard of the 98th, Brooks of the 47th and Stanley-Turner of the 43rd, Post 2
By: Representatives Epps of the 90th, Howard of the 98th, Brooks of the 47th and Stanley-Turner of the 43rd, Post 2
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 a tax credit for certain amounts expended for
qualified child care expenses in conformity with federal tax law; to provide for
definitions; to provide for conditions and limitations; to provide for authority
of the state revenue commissioner with respect to the foregoing; to provide for
related matters; 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.
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 immediately following Code Section
48_7_29.8, to be designated Code Section 48_7_29.9, to read as
follows:
"48_7_29.9.
(a) As used in this Code section, the term:
(1) 'Qualified child care expenses' means payments by the taxpayer for in_home child care services or day care which services or care:
(A) Allow the taxpayer to work or look for work;
(B) Are provided to the qualifying child; and
(C) Are purchased or obtained from an organization or individual not related to the taxpayer or the qualifying child.
(2) 'Qualifying child' means an individual who is related to the taxpayer by blood, marriage, or adoption and who is under the age of 13.
(b) A taxpayer who has claimed and been allowed a federal earned income credit pursuant to Section 32 of the Internal Revenue Code of 1986, as amended, shall be allowed a credit against the tax imposed by Code Section 48_7_20 for qualified child care expenses in an amount not to exceed the amount of the federal child care tax credit which the taxpayer claims and is allowed for federal income tax purposes. No taxpayer shall be entitled to such credit with respect to the same qualified child care expenses claimed by another taxpayer.
(c) Except as otherwise provided in subsection (d) of this Code section, in no event shall the amount of the tax credit exceed the taxpayer´s income tax liability. Any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer´s succeeding years´ tax liability. No such tax credit shall be allowed the taxpayer against prior years´ tax liability.
(d) To the extent that the tax credit exceeds the taxpayer´s income tax liability and the commissioner determines that this state´s allocation of federal temporary assistance for needy families block grant for the earned income credit contains sufficient funds, the commissioner is authorized to refund the applicable excess to the taxpayer from such federal funds made available for such purpose. If insufficient funds are available for such purpose, the commissioner shall make a pro rata refund with respect to qualifying taxpayers. If no funds are available, no refund shall be made under this subsection.
(e) No credit shall be allowed under this Code section with respect to any qualifying child care expenses either deducted or subtracted by the taxpayer in arriving at Georgia taxable net income or with respect to any qualified child care expenses for which amounts were excluded from Georgia net taxable income.
(f) The commissioner shall promulgate any rules and regulations necessary to implement and administer this Code section."
"48_7_29.9.
(a) As used in this Code section, the term:
(1) 'Qualified child care expenses' means payments by the taxpayer for in_home child care services or day care which services or care:
(A) Allow the taxpayer to work or look for work;
(B) Are provided to the qualifying child; and
(C) Are purchased or obtained from an organization or individual not related to the taxpayer or the qualifying child.
(2) 'Qualifying child' means an individual who is related to the taxpayer by blood, marriage, or adoption and who is under the age of 13.
(b) A taxpayer who has claimed and been allowed a federal earned income credit pursuant to Section 32 of the Internal Revenue Code of 1986, as amended, shall be allowed a credit against the tax imposed by Code Section 48_7_20 for qualified child care expenses in an amount not to exceed the amount of the federal child care tax credit which the taxpayer claims and is allowed for federal income tax purposes. No taxpayer shall be entitled to such credit with respect to the same qualified child care expenses claimed by another taxpayer.
(c) Except as otherwise provided in subsection (d) of this Code section, in no event shall the amount of the tax credit exceed the taxpayer´s income tax liability. Any unused tax credit shall not be allowed to be carried forward to apply to the taxpayer´s succeeding years´ tax liability. No such tax credit shall be allowed the taxpayer against prior years´ tax liability.
(d) To the extent that the tax credit exceeds the taxpayer´s income tax liability and the commissioner determines that this state´s allocation of federal temporary assistance for needy families block grant for the earned income credit contains sufficient funds, the commissioner is authorized to refund the applicable excess to the taxpayer from such federal funds made available for such purpose. If insufficient funds are available for such purpose, the commissioner shall make a pro rata refund with respect to qualifying taxpayers. If no funds are available, no refund shall be made under this subsection.
(e) No credit shall be allowed under this Code section with respect to any qualifying child care expenses either deducted or subtracted by the taxpayer in arriving at Georgia taxable net income or with respect to any qualified child care expenses for which amounts were excluded from Georgia net taxable income.
(f) The commissioner shall promulgate any rules and regulations necessary to implement and administer this Code section."
SECTION 2.
This Act shall become effective on January 1, 2004, and
shall be applicable to all taxable years beginning on or after January 1,
2004.
SECTION 3.
All laws and parts of laws in conflict with this Act are
repealed.