09 LC 18
8240S
The
House Committee on Ways and Means offers the following substitute to HB
485:
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 imposition, rate, computation, and exemptions regarding
income taxes, so as to provide for alternative tax credits for base year port
traffic; to provide for procedures, conditions, and limitations; to provide for
powers, duties, and authority of the state revenue commissioner; to provide for
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 imposition, rate, computation, and exemptions regarding income taxes, is
amended by adding a new Code section to read as follows:
"48-7-40.15A.
(a)
As used in this Code section, the term:
(1)
'Base year port traffic' means the total amount of net tons, containers, or
twenty-foot equivalent units (TEU's) of product actually imported into this
state or exported out of this state by way of a waterborne ship or vehicle
through a port facility during the period from January 1, 1997, through December
31, 1997; provided, however, that in the event the total amount actually
imported into this state or exported out of this state during such period was
not at least 75 net tons, five containers, or ten twenty-foot equivalent units
(TEU's), then 'base year port traffic' means 75 net tons, five containers, or
ten twenty-foot equivalent units (TEU's).
(2)
'Business enterprise' means any business located in a tier two or tier three
county established pursuant to Code Section 48-7-40 and in a less developed
area established pursuant to Code Section 48-7-40.1 and which qualifies and
receives the tax credit under Code Section 48-7-40.1 and which:
(A)
Consists of a distribution facility of greater than 650,000 square feet in
operation in this state prior to December 31, 2008;
(B)
Distributes product to retail stores owned by the same legal entity or its
subsidiaries as such distribution facility; and
(C)
Has a minimum of 8 retail stores in this state in the first year of
operations.
(3)
'Port traffic' means the total amount of net tons, containers, or twenty-foot
equivalent units (TEU's) of product imported into this state or exported out of
this state by way of a waterborne ship or vehicle through a port
facility.
(4)
'Product' means a marketable product or component of a product which has an
economic value to the wholesale or retail consumer and is ready to be used
without further alteration of its form or a product or material which is
marketed as a prepared material or is a component in the manufacturing and
assembly of other finished products.
(b)(1)
In the case of any business enterprise which has increased its port traffic of
products during the previous 12 month period by more than 10 percent above its
base year port traffic and is qualified to claim a job tax credit under Code
Section 48-7-40 or 48-7-40.1 for jobs added at any time on or after January 1,
1998, there shall be allowed an additional $1,250.00 job tax credit against the
tax imposed under this article.
(2)
The tax credit described in this subsection shall be allowed subject to the
conditions and limitations set forth in Code Section 48-7-40 and shall be in
addition to the credit allowed under Code Section 48-7-40; provided, however,
that such credit shall not be allowed during a year if the port traffic does not
remain above the minimum level established in this Code section.
(c)
No business enterprise shall be authorized to claim the credits provided for in
both subsection (b) of this Code section and subsection (b) of Code Section
48-7-40.15 on a tax return for any taxable year unless such business enterprise
has increased its port traffic of products during the previous 12 month period
by more than 20 percent above its base year port traffic and has increased
employment by 400 or more no sooner than January 1, 1998.
(d)(1)
The credit granted under this Code section shall be subject to the following
conditions and limitations:
(2)
For every year in which a taxpayer claims the credit, the taxpayer shall attach
a schedule to the taxpayer's state income tax return which shall set forth the
following information, as a minimum, in addition to the information required
under Code Sections 48-7-40 and 48-7-40.2 or 48-7-40.7:
(A)
A description of how the base year port traffic and the increase in port traffic
was determined;
(B)
The amount of the base year port traffic;
(C)
The amount of the increase in port traffic for the taxable year, including
information which demonstrates an increase in port traffic in excess of the
minimum amount required to claim the tax credit under this Code
section;
(D)
Any tax credit utilized by the taxpayer in prior years;
(E)
The amount of tax credit carried over from prior years;
(F)
The amount of tax credit utilized by the taxpayer in the current taxable year;
and
(G)
The amount of tax credit to be carried over to subsequent tax
years.
(3)(A)
Any tax credit claimed under subsection (b) of this Code section but not used in
any taxable year may be carried forward for ten years from the close of the
taxable year in which the qualified jobs were established, provided that the
increase in port traffic remains above the minimum levels established in Code
Section 48-7-40 and this Code section, respectively.
(B)
The tax credit established by this Code section in lieu of Code Section
48-7-40.2, 48-7-40.3, or 48-7-40.4 and taken in any one taxable year shall be
limited to an amount not greater than 50 percent of the taxpayer's state income
tax liability which is attributable to income derived from operations in this
state for that taxable year.
(C)
The tax credit established by this Code section in addition to that pursuant to
Code Section 48-7-40 and taken in any one taxable year shall be limited to an
amount not greater than 50 percent of the taxpayer's state income tax liability
which is attributable to income derived from operations in this state for that
taxable year.
(D)
The sale, merger, acquisition, or bankruptcy of any taxpayer shall not create
new eligibility for any succeeding taxpayer, but any unused credit may be
transferred and continued by any transferee of the taxpayer.
(e)
No credit may be claimed and allowed pursuant to this Code section for any jobs
created on or after January 1,
2015."
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.