07 LC
18 6064
House
Bill 225
By:
Representatives Royal of the
171st,
Golick of the
34th,
Roberts of the
154th,
Keen of the
179th,
O`Neal of the
146th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Code Section 48-7-27 of the Official Code of Georgia Annotated, relating
to computation of taxable net income for state income tax purposes, so as to
change certain provisions regarding the deduction for contributions to certain
college savings plans; to provide an effective date; to provide applicability;
to repeal conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Code
Section 48-7-27 of the Official Code of Georgia Annotated, relating to
computation of taxable net income for state income tax purposes, is amended in
subsection (a) by revising paragraph (11) and by adding a new paragraph to read
as follows:
"(11)(A)
For taxable years beginning on or after January 1, 2002,
and prior to
January 1, 2007, an amount equal to
the amount of contributions by parents or guardians of a designated beneficiary
to a savings trust account established pursuant to Article 11 of Chapter 3 of
Title 20 on behalf of the designated beneficiary who is claimed as a dependent
on the Georgia income tax return of the beneficiary´s parents or guardians,
but not exceeding $2,000.00 per beneficiary.
(B)
If the parents or guardians file joint returns, separate returns, or single
returns, the sum of contributions constituting deductions on their returns under
this paragraph shall not exceed $2,000.00 per beneficiary.
(C)
In order to claim the deduction for a taxable year:
(i)
Such parent or guardian must have claimed and been allowed itemized deductions
pursuant to Section 63(d) of the Internal Revenue Code of 1986 and paragraph (1)
of this subsection;
(ii)
The federal adjusted gross income for such taxable year cannot exceed
$100,000.00 for a joint return or $50,000.00 for a separate or single return
except as provided in subparagraph (D) of this paragraph; and
(iii)
Such parent or guardian must be the account owner of the designated
beneficiary´s account.
(D)
The maximum deduction authorized by this paragraph for each beneficiary shall
decrease by $400.00 for each $1,000.00 of federal adjusted gross income over
$100,000.00 for a joint return or $50,000.00 for a separate or single
return.
(E)
For purposes of this paragraph, contributions or payments for any such taxable
year may be made during or after such taxable year but on or before the deadline
for making contributions to an individual retirement account pursuant to Section
219(f)(3) of the Internal Revenue Code of 1986;
(11.1)(A)
For taxable years beginning on or after January 1, 2007, an amount equal to the
amount of contributions to a savings trust account established pursuant to
Article 11 of Chapter 3 of Title 20 on behalf of the designated beneficiary, but
not exceeding $2,000.00 per beneficiary.
(B)
If the contributor files a joint return, separate return, or single return, the
sum of contributions constituting deductions on the contributor´s returns
under this paragraph shall not exceed $2,000.00 per return.
(C)
For purposes of this paragraph, contributions or payments for any such taxable
year may be made during or after such taxable year but on or before the deadline
for making contributions to an individual retirement account under federal law
for such taxable year;"
SECTION
2.
This
Act shall become effective upon its approval by the Governor or upon its
becoming law without such approval.
SECTION
3.
All
laws and parts of laws in conflict with this Act are repealed.