Georgia-2009-HB1204-Introduced

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 an additional income tax credit for job creation for a limited period of time; to provide for definitions, procedures, conditions, and limitations; to provide for powers, duties, and authority of the state revenue commissioner; to provide an effective date; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

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:

(a) As used in this Code section, the term:

(1) 'Business enterprise' means any business or the headquarters of any such business in this state.

(2) 'Eligible new full-time employee job' means a permanent rather than part-time job consisting of not less than 35 hours per week and paying an annual wage of not less than $20,000.00 per year in the tax year in which the credit under this Code section is first claimed and allowed; provided, however, that if such salary is less than $20,000.00 in the immediately following year, such job shall be deemed to be an eligible full-time job if the remaining requirements of this paragraph continue to be met.

(3) 'Existing business enterprise' means any business or the headquarters of any such business which has operated for the immediately preceding three years a facility in this state.

(b) Business enterprises shall be allowed a tax credit for taxes imposed under this article for each eligible new full-time employee job created on or after January 1, 2010, and prior to January 1, 2012, beginning with the second taxable year following the taxable year in which the new full-time employee job is created and for the immediately succeeding taxable year. For each eligible full-time employee job, such tax credit shall be in an amount equal to 2 percent of the wages of the eligible new full-time employee or $700.00 per eligible new full-time employee job, whichever is less. Credit shall not be allowed during a year if the qualifying job is discontinued and the taxpayer shall forfeit the right to the credit claimed for that taxable year. For that year, a taxpayer that forfeits such right is therefore liable for all past taxes imposed by this article for that taxable year that were foregone by the state as a result of the credits provided by this Code section; provided, however, that Code Section 48-2-40 shall not apply to any such forfeiture.

(c) Any credit claimed under 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, subject to forfeiture as provided in subsection (b) of this Code section.

(d) Any credit claimed under 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, subject to forfeiture as provided in subsection (b) of this Code section, but the credit established by this Code section 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.

(e) Notwithstanding Code Section 48-2-35, any tax credit claimed under this Code section shall be claimed within three years of the earlier of the date the original tax return was filed or the date such return was due as prescribed in subsection (a) of Code Section 48-7-56, including any approved extensions."