--- title: O.C.G.A. § 48-7-40.20. Tax credits for businesses engaged in manufacturing cigarettes for exportation. collection: code id: 48-7-40.20 cite_as: O.C.G.A. § 48-7-40.20 (2025) canonical_url: https://georgiacommons.org/code/48-7-40.20 md_url: https://georgiacommons.org/code/48-7-40.20.md text_url: https://georgiacommons.org/code/48-7-40.20/text source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t48-ch7-8-(v37)-2024-pdf.pdf?sfvrsn=1ff964a3_0#page=395 date: 2025 status: active corpus_version: 2025-supplement-89aa39ab3c68 license: CC0-1.0 publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/code/48-7.md previous: https://georgiacommons.org/code/48-7-40.19.md next: https://georgiacommons.org/code/48-7-40.21.md index: https://georgiacommons.org/code/index.md version: Effective January 1, 2025. in_force: true other_versions: - version: Effective until January 1, 2025. in_force: false md_url: https://georgiacommons.org/code/48-7-40.20.md?version=until+January+1%2C+2025 current_through: Including Acts of the 2025 Regular Session of the General Assembly heading_path: REVENUE AND TAXATION / INCOME TAXES / IMPOSITION, RATE, COMPUTATION, EXEMPTIONS, AND CREDITS --- # O.C.G.A. § 48-7-40.20. Tax credits for businesses engaged in manufacturing cigarettes for exportation. (a) As used in this Code section, the term: (1) “Base year exportation volume” means the number of cigarettes manufactured and exported by a business enterprise during the calendar year 1999. (2) “Business enterprise” means any business or the headquarters of any business which is engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, and research and development industries. Such term shall not include retail businesses. (3) “Exportation” means the shipment of cigarettes manufactured in the United States to a foreign country sufficient to relieve the cigarettes in the shipment of the federal excise tax on cigarettes. (b) A business enterprise engaged in the business of manufacturing cigarettes for exportation to a foreign country is allowed a credit against the taxes levied by this article. The amount of credit allowed under this Code section is determined by comparing the exportation volume of the corporation in the year for which the credit is claimed with the corporation’s base year exportation volume, rounded to the nearest whole percentage. The amount of credit allowed is as follows: Current Year’s Exportation Amount of Credit Volume Compared to its per Thousand Base Year’s Exportation Vol- Cigarettes Exported ume 120 percent or more 40¢ 119 percent — 100 percent 35¢ 99 percent — 80 percent 30¢ 79 percent — 60 percent 25¢ 59 percent — 50 percent 20¢ Less than 50 percent None (c) The credit allowed under this Code section may not exceed the lesser of $6 million or percent of the amount of tax imposed by this article for the taxable year reduced by the sum of all other credits allowable, except tax payments made by or on behalf of the taxpayer. This limitation applies to the cumulative amount of the credit allowed in any tax year, including carry forwards claimed by the taxpayer under this Code section for previous tax years. Any unused portion of a credit allowed in this Code section may be carried forward for the next succeeding three years. (d) A business enterprise that claims the credit under this Code section must include the following with its tax return: (1) A statement of the base year exportation volume; (2) A statement of the exportation volume on which the credit is based; and (3) A list of the business enterprise’s export volumes shown on its monthly reports to the Bureau of Alcohol, Tobacco, and Firearms of the United States Department of the Treasury for the months in the tax year for which the credit is claimed. ## History Code 1981, § 48-7-40.20, enacted by Ga. L. 2000, p. 1447, § 1; Ga. L. 2024, p. 794, § 1-27/HB 1181, effective January 1, 2025. ## Editor's Notes Ga. L. 2024, p. 794, § 4-1/HB 1181, not codified by the General Assembly, makes the amendments to this Code section by Part I applicable only to the unused tax credits generated during the taxable years beginning on or after January 1, 2025. ## Amendments The 2024 amendment, effective January 1, 2025, substituted “three years” for “five years” at the end of the third sentence in subsection (c). See Editor’s notes for applicability. ## Delayed Effective Date Code Section 48-7-40.20 is set out twice in this Code. This version is effective January 1, 2025. For version effective until January 1, 2025, see the preceding version.