HB519: HB519 Revenue and taxation; amount of federal work opportunity credit claimed by a taxpayer shall also be allowed as a tax credit; provide

26 LC 62 0093/AP House Bill 519 (AS PASSED HOUSE AND SENATE) By: Representatives Stephens of the 164 th, Mathis of the 133 rd, Reeves of the 99 th, and Williams of the 148th A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to imposition, rate, com putation, exemption, and credits, so as to provide that the2 amount of the federal work opportunity credit claimed by a taxpayer shall also be allowed3 as a tax credit against state income taxes; to provide for conditions, eligibility, limitations,4 and recaptures; to provide for definitions; to provide for rules and regulations; to provide for5 automatic repeal; to provide for related matters; to provide fo r an effective date and6 applicability; to repeal conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to10 imposition, rate, computation, exemption, and credits, is amend ed by adding a new Code11 section to read as follows:12 "48-7-29.27.13 (a) As used in this Code section, the term:14 (1) 'Federal work opportunity tax credit' means the work oppor tunity credit allowed15 under Section 51 of the Internal Revenue Code.16 H. B. 519 - 1 - 26 LC 62 0093/AP (2) 'Qualified wages' shall have the same meaning as provided in Section 51 of the17 Internal Revenue Code.18 (3) 'Targeted group' shall have the same meaning as provided i n the Internal Revenue19 Code.20 (b)(1) A taxpayer subject to tax under this article shall be allowed a credit against such21 tax in an amount equal to 100 percent of the tax credit allowed to such taxpayer under22 Section 51 of the Internal Revenue Code attributable to qualified wages paid to a Georgia23 resident who is a member of a targeted group and to whom a certificate to that effect has24 been issued by the United States Department of Labor.25 (2) Such credit shall not exceed $500.00 per eligible employee per year in any given tax26 year.27 (c) To claim a tax credit allowed by this Code section, the ta xpayer shall provide any28 information required by the department. Each taxpayer claiming a tax credit under this29 Code section shall maintain and make available for inspection b y the department any30 records that the department deems necessary to determine the amount of the tax credit to31 which the taxpayer is entitled. The burden of proving eligibility for a tax credit allowed32 by this Code section and the amount of such tax credit rests upon the taxpayer, and no such33 credit shall be allowed to a taxpayer that fails to maintain adequate records or to make such34 records available for inspection.35 (d)(1) If, after the inspection of records as provided for in subsection (c) of this Code36 section, the department determines that all or a portion of any federal work opportunity37 tax credit taken should be recaptured from a taxpayer, the department shall recapture a38 proportionate amount of the corresponding tax credit allowed to such taxpayer under this39 Code section.40 (2) In the event that the recapture of any tax credit allowed under this Code section is41 required, any amended return submitted to the department as provided in subsection (c)42 of this Code section shall include the proportion of the state tax credit required to be43 H. B. 519 - 2 - 26 LC 62 0093/AP recaptured, the identity of each taxpayer subject to the recapture, and the amount of tax44 credit previously allocated to such taxpayer.45 (e) In no event shall the:46 (1) Amount of the tax credit allowed under this Code section for a taxable year exceed47 a taxpayer's income tax liability for such year;48 (2) Tax credit provided for in this Code section be allowed to a taxpayer against any49 succeeding or prior year's tax liability; or50 (3) Aggregate limit of tax credits allowed under this Code section for any year exceed51 $10 million.52 (f) The commissioner is authorized to promulgate any rules and regulations necessary to53 implement and administer this Code section.54 (g) This Code section shall stand repealed on December 31, 2030."55 SECTION 2.56 This Act shall become effective on January 1, 2026, and shall b e applicable to all taxable57 years beginning on or after January 1, 2026.58 SECTION 3.59 All laws and parts of laws in conflict with this Act are repealed.60 H. B. 519 - 3 -