Section 48-7-40.22 - [Effective 1/1/2025] Tax credits for business enterprises for leased motor vehicles; daily ridership; implementation(a) As used in this Code section, the term: (1) "Broadcasting" means the transmission or licensing of audio, video, text, or other programming content to the general public, subscribers, or to third parties via radio, television, cable, satellite, or the internet or IP and includes motion picture and sound recording, editing, production, postproduction, and distribution. Such term is limited to establishments classified under the 2007 North American Industry Classification System Codes 515, broadcasting; 519, internet publishing and broadcasting; 517, telecommunications; and 512, motion picture and sound recording industries.(2) "Business enterprise" means any business or the headquarters of any such business which is engaged in manufacturing, warehousing and distribution, processing, telecommunications, broadcasting, tourism, research and development industries, child care businesses, or retail businesses.(3) "Headquarters" means the principal central administrative office of a taxpayer.(4) "Tier" means a tier as designated pursuant to Code Section 48-7-40, as amended.(b) A business enterprise which is located in a tier 1 or tier 2 county which purchases or leases a new motor vehicle as defined in paragraph (34) of Code Section 40-1-1 in this state which is used for the exclusive purpose of providing transportation for its employees shall be allowed a credit for taxes imposed under this article as follows: Tier | Credit amount per vehicle |
1 ............................................. | $ 3,000.00 |
2 ............................................. | 2000.00 |
(c) In order to qualify for the tax credit under this Code section, a business enterprise must certify that each vehicle for which a credit is claimed carries an average daily ridership of not less than four employees for an entire taxable year.(d) In no event shall the aggregate amount of the tax credit provided by this Code section exceed the income tax liability of the business enterprise. Any unused tax credit shall be allowed to be carried forward to apply to the three succeeding years' tax liability of such business enterprise. No such credit shall be allowed the business enterprise against prior years' tax liability.(e) No business enterprise shall be authorized to claim on a tax return the credit provided for in this Code section with respect to a vehicle if such business enterprise claims any of the credits authorized under subsection (b) of Code Section 48-7-40.16 with respect to such vehicle.(f)(1) If a business enterprise sells a new motor vehicle within three years of receiving the credit, the business enterprise shall recapture the credit as follows: (A) If the motor vehicle is sold within one year of receiving the credit, the recapture amount will equal the lesser of the credit or the net profit from the sale;(B) If the motor vehicle is sold within two years of receiving the credit, the recapture amount will equal the lesser of two-thirds of the credit or the net profit from the sale; and(C) If the motor vehicle is sold within three years of receiving the credit, the recapture amount will equal the lesser of one-third of the credit or the net profit from the sale.(2) The recapture provisions of this subsection shall not apply to:(A) Any sale by reason of death;(B) Any sale between spouses or incident to divorce;(C) Any transaction to which Section 381(a) of the Internal Revenue Code of 1986 applies;(D) Any change in the form of conducting the taxpayer's trade or business so long as the property is retained in such trade or business and the taxpayer retains a substantial interest in such trade or business; or(E) Any accident or casualty.(g) The commissioner shall promulgate any rules and regulations necessary to implement and administer the Code section.(h) This Code section shall stand repealed and reserved on December 31, 2029.Amended by 2024 Ga. Laws 701,§ 5, eff. 7/1/2024.Amended by 2024 Ga. Laws 598,§ 2-3, eff. 1/1/2025.Amended by 2024 Ga. Laws 598,§ 1-28, eff. 1/1/2025, app. only to unused tax credits generated during taxable years beginning on or after 1/1/2025.Amended by 2013 Ga. Laws 33,§ 48, eff. 4/24/2013.Amended by 2008 Ga. Laws 730,§ 6, eff. 5/14/2008.Amended by 2002 Ga. Laws 446, § 6, eff. 4/12/2002.Added by 2001 Ga. Laws 25, §3, eff. 1/1/2002. See 2002 Ga. Laws 446, § 15.This section is set out more than once due to postponed, multiple, or conflicting amendments.