| 1 | 1 | | 23 LC 51 0222 |
|---|
| 2 | 2 | | H. B. 25 |
|---|
| 3 | 3 | | - 1 - |
|---|
| 4 | 4 | | House Bill 25 |
|---|
| 5 | 5 | | By: Representatives Thomas of the 65 |
|---|
| 6 | 6 | | th |
|---|
| 7 | 7 | | , Buckner of the 137 |
|---|
| 8 | 8 | | th |
|---|
| 9 | 9 | | , and Drenner of the 85 |
|---|
| 10 | 10 | | th |
|---|
| 11 | 11 | | |
|---|
| 12 | 12 | | A BILL TO BE ENTITLED |
|---|
| 13 | 13 | | AN ACT |
|---|
| 14 | 14 | | To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, |
|---|
| 15 | 15 | | 1 |
|---|
| 16 | 16 | | relating to imposition, rate, computation, and exemptions from income taxes, so as to provide2 |
|---|
| 17 | 17 | | for a tax credit for certain wooden toy manufacturers; to provide for definitions; to provide3 |
|---|
| 18 | 18 | | for conditions and limitations; to provide for rules, regulations, and forms; to provide for4 |
|---|
| 19 | 19 | | related matters; to provide for a short title; to provide for an effective date and applicability;5 |
|---|
| 20 | 20 | | to repeal conflicting laws; and for other purposes.6 |
|---|
| 21 | 21 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 |
|---|
| 22 | 22 | | SECTION 1.8 |
|---|
| 23 | 23 | | This Act shall be known and may be cited as the "Georgia Wooden Toy Act."9 |
|---|
| 24 | 24 | | SECTION 2.10 |
|---|
| 25 | 25 | | Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to11 |
|---|
| 26 | 26 | | imposition, rate, computation, and exemptions from income taxes, is amended by adding a12 |
|---|
| 27 | 27 | | new Code section to read as follows:13 |
|---|
| 28 | 28 | | "48-7-40.37. |
|---|
| 29 | 29 | | 14 |
|---|
| 30 | 30 | | (a) As used in this Code section, the term:15 23 LC 51 0222 |
|---|
| 31 | 31 | | H. B. 25 |
|---|
| 32 | 32 | | - 2 - |
|---|
| 33 | 33 | | (1) 'Toy manufacturer' means an enterprise or organization, whether corporation,16 |
|---|
| 34 | 34 | | partnership, limited liability company, proprietorship, association, trust, business trust,17 |
|---|
| 35 | 35 | | real estate trust, or other form of organization, and its affiliates, which is registered and18 |
|---|
| 36 | 36 | | authorized to use the federal employment verification system known as 'E-Verify' or any19 |
|---|
| 37 | 37 | | successor federal employment verification system and is engaged in or carrying on the20 |
|---|
| 38 | 38 | | manufacture of toys in this state and derived at least 50 percent of its gross annual income21 |
|---|
| 39 | 39 | | from the sale of wooden toys in its current or preceding taxable year.22 |
|---|
| 40 | 40 | | (2) 'Wooden toy' means a consumer good and any related packaging materials made23 |
|---|
| 41 | 41 | | solely from wood or wood-derived sources manufactured primarily for enjoyment by24 |
|---|
| 42 | 42 | | children.25 |
|---|
| 43 | 43 | | (b) Each toy manufacturer that increases its expenditures incurred in this state for materials26 |
|---|
| 44 | 44 | | or labor used directly in the manufacture of wooden toys by at least 30 percent from its27 |
|---|
| 45 | 45 | | preceding taxable year shall be allowed a credit against the tax imposed by this article in28 |
|---|
| 46 | 46 | | the amount of 20 percent of the increase in such expenditures.29 |
|---|
| 47 | 47 | | (c) In no event shall the credit provided by subsection (b) of this Code section for a taxable30 |
|---|
| 48 | 48 | | year exceed the toy manufacturer's income tax liability. Any unused portion of the credit31 |
|---|
| 49 | 49 | | provided by subsection (b) of this Code section shall be permitted to be carried forward and32 |
|---|
| 50 | 50 | | applied to the toy manufacturer's tax liability for the subsequent three years. The credit33 |
|---|
| 51 | 51 | | provided by subsection (b) of this Code section shall not be applied against the toy34 |
|---|
| 52 | 52 | | manufacturer's prior years' tax liabilities.35 |
|---|
| 53 | 53 | | (d) The commissioner shall promulgate rules and regulations and forms necessary to36 |
|---|
| 54 | 54 | | implement and administer the provisions of this Code section."37 |
|---|
| 55 | 55 | | SECTION 3.38 |
|---|
| 56 | 56 | | This Act shall become effective on July 1, 2023, and shall be applicable to all taxable years39 |
|---|
| 57 | 57 | | beginning on or after January 1, 2024.40 23 LC 51 0222 |
|---|
| 58 | 58 | | H. B. 25 |
|---|
| 59 | 59 | | - 3 - |
|---|
| 60 | 60 | | SECTION 4. |
|---|
| 61 | 61 | | 41 |
|---|
| 62 | 62 | | All laws and parts of laws in conflict with this Act are repealed.42 |
|---|