SB465: SB465 Income Taxes; business enterprises that hire illegal aliens for large-scale projects from claiming certain tax credits associated with such projects; disqualify

26 LC 59 0401S (SCS) Senate Bill 465 By: Senators Gooch of the 51st, Echols of the 49th, Ginn of the 47th, Robertson of the 29th, Goodman of the 8th and others AS PASSED SENATE 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, computation, exemptions, and credits relative to income taxes,2 so as to disqualify business enterprises that hire illegal aliens for large-scale projects from3 claiming certain tax credits associated with such projects; to prevent a business enterprise4 from claiming such credits in excess of such business enterprise's tax liability against certain5 quarterly or monthly payments; to provide for a sunset date; to allow for a business enterprise6 whose application has been approved prior to such sunset date to continue to claim credits7 for a limited period of time; to provide for related matters; to repeal conflicting laws; and for8 other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to12 imposition, rate, computation, exemptions, and credits relative to income taxes, is amended13 by revising subsection (d) of Code Section 48-7-40.24, relating to tax credits for jobs14 associated with large-scale projects, and adding a new subsection to read as follows:15 S. B. 465 - 1 - 26 LC 59 0401S (SCS) "(d) A business enterprise whose application is approved shall be allowed a tax credit for16 taxes imposed under this article equal to $5,250.00 annually pe r new eligible full-time17 employee job for five years beginning with the year in which such job is created through18 year five after such creation; provided, however, that, where t he amount of such credit19 exceeds a business enterprise's liability for such taxes in a taxable year, the excess may be20 taken as a credit against such business enterprise's quarterly or monthly payment under21 Code Section 48-7-103. The taxpayer may file an election with the commissioner to take22 such credit against quarterly or monthly payments under Code Se ction 48-7-103 that23 become due before the due date of the income tax return on whic h such credit may be24 claimed. In the event of such an election, the commissioner shall confirm with the taxpayer25 a date, which shall not be later than 30 days after receipt of the taxpayer's election, when26 the taxpayer may begin to take the credit against such quarterly or monthly payments. For27 any one taxable year the amounts taken as a credit against taxes imposed under this article28 and against the business enterprise's quarterly or monthly paym ents under Code29 Section 48-7-103 may not in the aggregate exceed $5,250.00 per eligible full-time30 employee job. Each employee whose employer receives credit aga inst such business31 enterprise's quarterly or monthly payment under Code Section 48 -7-103 shall receive a32 credit against his or her incom e tax liability under Code Secti on 48-7-20 for the33 corresponding taxable year for the full amount which would be c redited against such34 liability prior to the application of the credit provided for in this subsection. Credits against35 quarterly or monthly payments under Code Section 48-7-103 and credits against liability36 under Code Section 48-7-20 established by this subsection shall not constitute income to37 the taxpayer . To qualify for a credit under this subsection, the employer business38 enterprise must make health insurance coverage available to the employee filling the new39 full-time job; provided, however, that nothing in this subsecti on shall be construed to40 require the employer business enterprise to pay for all or any part of health insurance41 coverage for such an employee in order to claim the credit provided for in this subsection42 S. B. 465 - 2 - 26 LC 59 0401S (SCS) if such employer enterprise does not pay for all or any part of health insurance coverage43 for other employees. A business enterprise found to have hired an illegal alien, as such44 term is defined in Code Section 16-11-201, and claimed such hir ing as the basis for45 receiving a tax credit under this Code section shall be disqualified from receiving any such46 credit."47 "(s) No business enterprise shall be allowed a tax credit under this Code section against48 taxes imposed under this article on or after July 1, 2031; prov ided, however, that any49 business enterprise whose application has been approved prior to such date may be allowed50 such tax credit for the remainder of the five-year period, as provided under subsection (d)51 of this Code section, for which such business enterprise would have otherwise been52 allowed such tax credit."53 SECTION 2.54 All laws and parts of laws in conflict with this Act are repealed.55 S. B. 465 - 3 -