23 LC 51 0222
H. B. 25
- 1 -
House Bill 25
By: Representatives Thomas of the 65
th
, Buckner of the 137
th
, and Drenner of the 85
th
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
1
relating to imposition, rate, computation, and exemptions from income taxes, so as to provide2
for a tax credit for certain wooden toy manufacturers; to provide for definitions; to provide3
for conditions and limitations; to provide for rules, regulations, and forms; to provide for4
related matters; to provide for a short title; to provide for an effective date and applicability;5
to repeal conflicting laws; and for other purposes.6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
SECTION 1.8
This Act shall be known and may be cited as the "Georgia Wooden Toy Act."9
SECTION 2.10
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to11
imposition, rate, computation, and exemptions from income taxes, is amended by adding a12
new Code section to read as follows:13
"48-7-40.37.
14
(a) As used in this Code section, the term:15 23 LC 51 0222
H. B. 25
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(1) 'Toy manufacturer' means an enterprise or organization, whether corporation,16
partnership, limited liability company, proprietorship, association, trust, business trust,17
real estate trust, or other form of organization, and its affiliates, which is registered and18
authorized to use the federal employment verification system known as 'E-Verify' or any19
successor federal employment verification system and is engaged in or carrying on the20
manufacture of toys in this state and derived at least 50 percent of its gross annual income21
from the sale of wooden toys in its current or preceding taxable year.22
(2) 'Wooden toy' means a consumer good and any related packaging materials made23
solely from wood or wood-derived sources manufactured primarily for enjoyment by24
children.25
(b) Each toy manufacturer that increases its expenditures incurred in this state for materials26
or labor used directly in the manufacture of wooden toys by at least 30 percent from its27
preceding taxable year shall be allowed a credit against the tax imposed by this article in28
the amount of 20 percent of the increase in such expenditures.29
(c) In no event shall the credit provided by subsection (b) of this Code section for a taxable30
year exceed the toy manufacturer's income tax liability. Any unused portion of the credit31
provided by subsection (b) of this Code section shall be permitted to be carried forward and32
applied to the toy manufacturer's tax liability for the subsequent three years. The credit33
provided by subsection (b) of this Code section shall not be applied against the toy34
manufacturer's prior years' tax liabilities.35
(d) The commissioner shall promulgate rules and regulations and forms necessary to36
implement and administer the provisions of this Code section."37
SECTION 3.38
This Act shall become effective on July 1, 2023, and shall be applicable to all taxable years39
beginning on or after January 1, 2024.40 23 LC 51 0222
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SECTION 4.
41
All laws and parts of laws in conflict with this Act are repealed.42