Bill Text: GA HB1023 | 2009-2010 | Regular Session | Comm Sub
Bill Title: Jobs, Opportunity, and Business Success Act of 2010; enact
Spectrum: Partisan Bill (Republican 7-0)
Status: (Vetoed) 2010-06-04 - Veto V8 [HB1023 Detail]
Download: Georgia-2009-HB1023-Comm_Sub.html
10 LC
18 9185ERS
The
Senate Finance Committee offered the following substitute to HB
1023:
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
enact the Jobs, Opportunity, and Business Success Act of 2010; to amend and
enact provisions intended to provide for tax relief, to encourage employment
opportunities and business stimulation, and to provide temporary revenue support
for hospitals and nonprofit health care clinics; to provide for a short title;
to amend Chapter 8 of Title 31 of the Official Code of Georgia Annotated,
relating to the care and protection of indigent and elderly patients, so as to
provide for a payment to be imposed on hospitals to be used to obtain federal
financial participation for medical assistance payments under Medicaid; to
provide for definitions; to establish a segregated account within the Indigent
Care Trust Fund; to provide for a method for calculating and collecting the
provider payment; to authorize inspection of hospital records; to provide for
penalties; to recommend withholding of Medicaid payments equal to amounts owed;
to provide for the collection of payments; to provide for the appropriation of
funds in the segregated account; to provide for application of the "Georgia
Medical Assistance Act of 1977"; to provide for automatic repeal; to amend
Title 34 of the Official Code of Georgia Annotated, relating to labor and
industrial relations, so as to provide that, for a period of time, employers who
hire persons receiving employment security benefits shall be entitled to a
credit against employer contributions; to amend Title 48 of the Official Code of
Georgia Annotated, the "Georgia Public Revenue Code," so as to provide that a
portion of net long-term capital gains shall be excluded from state taxable
income of corporations and individuals; to provide for an income tax credit for
certain qualified business investments for a limited period of time; to provide
for legislative findings and intent; to provide for definitions; to provide for
procedures, conditions, and limitations; to provide for powers, duties, and
authority of the state revenue commissioner with respect to the foregoing; to
provide for an exemption from state sales and use tax only for a limited period
of time regarding the sale or use of tangible personal property to certain
nonprofit health centers; to provide for an exemption for a limited period of
time regarding sales to certain nonprofit volunteer health clinics; to extend
the sunset or termination date of the exemption for certain qualified nonprofit
job training organizations; to eliminate the corporate net worth tax; to provide
for the effect of such elimination on liabilities and eligibilities; to provide
that such elimination shall not abate or affect prosecutions, punishments,
penalties, administrative proceedings or remedies, or civil actions related to
certain violations; to provide for other related matters; to provide for
effective dates; to repeal conflicting laws; and for other
purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
(a)
This Act shall be known and may be cited as the "Jobs, Opportunity, and Business
Success Act of 2010."
(b) The General Assembly intends through the enactment of this Act, during this time of economic decline, to stimulate the state's economy overall by providing for tax relief, encouraging employment opportunities and business stimulation, and providing revenue support for hospitals and nonprofit health care clinics.
(b) The General Assembly intends through the enactment of this Act, during this time of economic decline, to stimulate the state's economy overall by providing for tax relief, encouraging employment opportunities and business stimulation, and providing revenue support for hospitals and nonprofit health care clinics.
SECTION
2.
Chapter
8 of Title 31 of the Official Code of Georgia Annotated, relating to the care
and protection of indigent and elderly patients, is amended by adding a new
article to read as follows:
"ARTICLE
6C
31-8-179.
This
article is enacted pursuant to the authority of Article III, Section IX,
Paragraph VI(i) of the Constitution.
31-8-179.1.
As
used in this article, the term:
(1)
'Department' means the Department of Revenue.
(2)
'Hospital' means an institution licensed pursuant to Chapter 7 of this title
which is primarily engaged in providing to inpatients, by or under the
supervision of physicians, diagnostic services and therapeutic services for
medical diagnosis, treatment, and care of injured, disabled, or sick persons or
rehabilitation services for the rehabilitation of injured, disabled, or sick
persons. Such term includes public, private, rehabilitative, geriatric,
osteopathic, and other specialty hospitals but shall not include psychiatric
hospitals as defined in paragraph (7) of Code Section 37-3-1, critical access
hospitals as defined in paragraph (3) of Code Section 33-21A-2, or any state
owned or state operated hospitals.
(3)
'Net patient revenue' means the total gross patient revenue of a hospital less
contractual adjustments; charity care; bad debt; Hill-Burton commitments; and
indigent care as defined by and calculated in the Department of Community
Health's annual hospital financial survey.
(4)
'Provider payment' means the payment imposed pursuant to this article for the
privilege of operating a hospital.
(5)
'Segregated account' means an account for the dedication and deposit of provider
payments which is established within the Indigent Care Trust Fund created
pursuant to Code Section 31-8-152.
(6)
'Trust fund' means the Indigent Care Trust Fund created pursuant to Code Section
31-8-152.
31-8-179.2.
There
is established within the trust fund a segregated account for revenues raised
through the imposition of the provider payment. All revenues raised through
provider payments from hospitals shall be credited to the segregated account
within the trust fund. All funds shall be invested in the same manner as
authorized for investing other moneys in the state treasury. Contributions and
transfers to the trust fund pursuant to Code Sections 31-8-153 and 31-8-153.1
shall not be deposited into the segregated account.
31-8-179.3.
(a)
Each hospital shall be assessed a provider payment, assessed uniformly upon all
hospitals, in the amount of 1.45 percent of the net patient revenue of the
hospital; provided, however, that hospitals with a designated trauma center, as
defined in paragraph (1) of Code Section 31-11-100, shall be assessed a provider
payment in the amount of 1.38 percent of the net patient revenue of the
hospital.
(b)
The provider payment shall be paid quarterly by each hospital to the department.
The assessment shall be based on the Department of Community Health's annual
hospital financial survey. Payment of the provider payment shall be due at end
of each calendar quarter; the first payment shall be due on September
30.
(c)
The amount of provider payment paid by a hospital under this article shall be
credited by the Department of Community Health toward any indigent or charity
care commitment imposed by the Department of Community Health on such hospital
as a condition of the grant of a certificate of need pursuant to subsection (c)
of Code Section 31-6-40.1 and reported pursuant to Code Section
31-6-70.
31-8-179.4.
(a)
The department shall collect the provider payments imposed pursuant to Code
Section 31-8-179.3. All revenues raised pursuant to this article shall be
deposited into the segregated account. Such funds shall be dedicated and used
for the sole purpose of obtaining federal financial participation for medical
assistance payments to providers on behalf of Medicaid recipients pursuant to
Article 7 of Chapter 4 of Title 49.
(b)
The department shall prepare and distribute a form upon which each hospital
shall submit information to comply with this article.
(c)
Each hospital shall keep and preserve for a period of three years such books and
records as may be necessary to determine the amount for which it is liable under
this article. The department shall have the authority to inspect and copy the
records of a hospital for purposes of auditing the calculation of the provider
payment. All information obtained by the department pursuant to this article
shall be confidential and shall not constitute a public record.
(d)
In the event the department determines that a hospital has underpaid or overpaid
the provider payment, the department shall notify the hospital of the balance of
the provider payment or refund that is due. Such payment or refund shall be due
within 30 days of the department's notice.
(e)
Any hospital that fails to pay the provider payment pursuant to this article
within the time required by this article shall pay, in addition to the
outstanding provider payment, a 6 percent penalty for each month or fraction
thereof that the payment is overdue. If a provider payment has not been
received by the department by the last day of the month, the department shall
recommend that the Department of Community Health withhold an amount equal to
the provider payment and penalty owed from any medical assistance payment due
such hospital under the Medicaid program. The provider payment levied by this
article shall constitute a debt due the state and may be collected by civil
action and the filing of tax liens in addition to such methods provided for in
this article. Any penalty that accrues pursuant to this subsection shall be
credited to the segregated account.
31-8-179.5.
(a)
Notwithstanding any other provision of this chapter, the General Assembly is
authorized to appropriate as state funds to the Department of Community Health
for use in any fiscal year all revenues dedicated and deposited into the
segregated account. Such appropriations shall be made for the sole purpose of
obtaining federal financial participation for medical assistance payments to
providers on behalf of Medicaid recipients pursuant to Article 7 of Chapter 4 of
Title 49. Any appropriation from the segregated account for any purpose other
than such medical assistance payments shall be void.
(b)
Revenues appropriated to the Department of Community Health pursuant to this
Code section shall be used to match federal funds that are available for the
purpose for which such trust funds have been appropriated.
(c)
Appropriations from the segregated account to the Department of Community Health
shall not lapse to the general fund at the end of the fiscal year.
31-8-179.6.
The
Department of Community Health shall report annually to the General Assembly on
its use of revenues deposited into the segregated account and appropriated to
the Department of Community Health pursuant to this article.
31-8-179.7.
Except
where inconsistent with this article, the provisions of Article 7 of Chapter 4
of Title 49, the 'Georgia Medical Assistance Act of 1977,' shall apply to the
department and the Department of Community Health in carrying out the purposes
of this article.
31-8-179.8.
This
article shall stand repealed on June 30,
2013."
SECTION
3.
Title
34 of the Official Code of Georgia Annotated, relating to labor and industrial
relations, is amended by revising Code Section 34-8-156, relating to the
State-wide Reserve Ratio and reduction in tax rate, by adding a new subsection
to read as follows:
"(g)(1)
The Commissioner shall make an expedited request within 15 days of the effective
date of this Act for a determination by the United States secretary of labor
that implementation of paragraph (3) of this subsection is in conformity with
federal law. If the United States secretary of labor determines that paragraph
(3) of this subsection is not in conformity with federal law and cannot be
adjusted procedurally by the Commissioner pursuant to Code Section 34-8-93
pending action of the General Assembly to bring about conformity with federal
law, paragraph (3) of this subsection shall not become effective. Upon such
determination the Commissioner shall take all necessary steps to obtain a waiver
of conformity with federal law from the United States secretary of labor. If
such waiver is granted, paragraph (3) of this subsection shall become effective
immediately upon the granting of the waiver. If the United States secretary of
labor determines that paragraph (3) of this subsection could be implemented in
conformity with federal law if procedurally adjusted by the Commissioner, the
Commissioner shall exercise the authority granted under Code Section 34-8-93 to
make such adjustments and paragraph (3) of this subsection shall become
effective immediately following such adjustment. If the United States secretary
of labor determines that paragraph (3) of this subsection is in conformity with
federal law, paragraph (3) of this subsection shall become effective immediately
upon such determination.
(2)
In the event paragraph (3) of this subsection becomes effective, it shall not be
implemented unless the Commissioner determines that the employer contribution
and reimbursement liability shall not increase as a result of such
implementation.
(3)
If this paragraph becomes effective, for calendar quarters beginning on or after
July 1, 2010, there shall be a credit to be known as the Georgia Works Tax
Credit. The amount of the credit shall be not less than $25.00 and not more
than $125.00 per individual employee per calendar quarter, as further described
in this paragraph. The determination of the amount of the credit, within the
permissible range, shall be made and periodically revised by the Commissioner
based on the Commissioner's evaluation of conditions in the Georgia labor
market, the state of the economy, and the State-wide Reserve Ratio. The credit
may be claimed by an employer for up to four calendar quarters for each
individual hired by that employer for services to be performed in this state
under the following conditions:
(A)
Such individual:
(i)
Has filed a claim for unemployment compensation in this state and is currently
receiving weekly unemployment compensation benefits on that claim under the
provisions of Article 7 of this chapter and such benefits are chargeable to the
experience rating account of an employer under Code Section
34-8-157;
(ii)
Has been profiled by the department as likely to exhaust benefits;
(iii)
Has no return-to-work date or promise of future employment; and
(iv)
Has at least eight weeks of benefit eligibility remaining on his or her current
claim at the time the employer hires the individual;
(B)
The credit for each such hired individual per calendar quarter may be claimed on
the reports required to be filed under Code Section 34-8-165 as a reduction from
amounts otherwise due in each of the four calendar quarters immediately
following the hire date of the individual; provided, however, that the credit
may not be claimed for any individual who has been hired more than once by the
employer claiming the credit or for more than four calendar quarters for that
one hiring;
(C)
For each calendar quarter for which the credit is claimed, such individual shall
be continuously employed by the employer claiming the credit, and such
individual's employment with that employer shall consist of at least 30 hours
per week during each week of that calendar quarter;
(D)
The credit shall be timely claimed for the calendar quarter to which the credit
is applicable, and in no event later than the last day of the reporting month
following the end of the calendar quarter to which the credit is applicable.
The credit shall not be refundable. The credit cannot reduce tax liability
below zero; provided, however, that the credit, if properly and timely claimed,
may be carried forward and applied against contributions due in any subsequent
calendar quarter in the same calendar year as claimed. Any unused credit
remaining at the end of a calendar year shall not be carried forward to another
calendar year and shall be deemed to have expired; and
(E)
No credit shall be claimed or taken by any employer who fails to timely file any
report or to timely pay all amounts otherwise due for all calendar quarters
during the calendar year for which the credit is claimed. In the event an
employer has claimed a credit under this Code section and fails to timely file
any report or to timely pay all amounts otherwise due during the year the credit
is claimed, the amount of any credits claimed for that calendar year shall be
canceled and become delinquent as of the date originally due under Code Section
34-8-165 and subject to all the provisions of this article as if no credit had
ever been available or
claimed."
SECTION
4.
Title
48 of the Official Code of Georgia Annotated, the "Georgia Public Revenue Code,"
is amended in Code Section 48-7-21, relating to taxation of corporations, by
adding at the end of subsection (b) a new paragraph (17) to read as
follows:
"(17)(A)
For the taxable year beginning on or after January 1 of the calendar year
immediately following the state fiscal year in which the revenue shortfall
reserve is funded at the level of $500 million or more as certified to the
commissioner in writing by the state auditor, and prior to January 1 of the next
succeeding taxable year, there shall be subtracted from taxable income an amount
equal to 25 percent of the excess of the net long-term capital gain, over the
net short-term capital loss included in Georgia taxable net income.
(B)
For all taxable years beginning on or after January 1 of the taxable year next
succeeding the taxable year specified in subparagraph (A) of this paragraph,
there shall be subtracted from taxable income an amount equal to 50 percent of
the excess of the net long-term capital gain, over the net short-term capital
loss included in Georgia taxable net income.
(C)
For purposes of this paragraph, the terms 'net long-term capital gain' and 'net
short-term capital loss' shall mean the same as defined in Section 1222 of the
Internal Revenue Code."
SECTION
5.
Said
title is further amended in subsection (a) of Code Section 48-7-27, relating to
computation of taxable net income of individuals, by deleting "and" at the end
of paragraph (14); replacing the period at the end of paragraph (15) with ";
and"; and adding a new paragraph (16) to read as follows:
"(16)(A)
For the taxable year beginning on or after January 1 of the calendar year
immediately following the state fiscal year in which the revenue shortfall
reserve is funded at the level of $500 million or more as certified to the
commissioner in writing by the state auditor, and prior to January 1 of the next
succeeding taxable year, an amount equal to 25 percent of the excess of the net
long-term capital gain, over the net short-term capital loss included in Georgia
taxable net income.
(B)
For all taxable years beginning on or after January 1 of the taxable year next
succeeding the taxable year specified in subparagraph (A) of this paragraph, an
amount equal to 50 percent of the excess of the net long-term capital gain, over
the net short-term capital loss included in Georgia taxable net
income.
(C)
For purposes of this paragraph, the terms 'net long-term capital gain' and 'net
short-term capital loss' shall mean the same as defined in Section 1222 of the
Internal Revenue Code."
SECTION
6.
Said
title is further amended by adding a new Code section to read as
follows:
"48-7-40.29.
(a)
The General Assembly finds that entrepreneurial businesses significantly
contribute to the economy of the state. The intent of this Code section is to
achieve the following:
(1)
To encourage individual investors to invest in early stage, innovative,
wealth-creating businesses;
(2)
To enlarge the number of high quality, high paying jobs within the state both to
attract qualified individuals to move to and work within this state and to
retain young people educated in Georgia's universities and
colleges;
(3)
To expand the economy of Georgia by enlarging its base of wealth-creating
businesses; and
(4)
To support businesses seeking to commercialize technology invented in Georgia's
universities and colleges.
(b)
As used in this Code section, the term:
(1)
'Allowable credit' means the credit as it may be reduced pursuant to
subparagraph (3) of subsection (i) of this Code section.
(2)
'Headquarters' means the principal central administrative office of a business
located in this state which conducts significant operations of such
business.
(3)
'Net income tax liability' means income tax liability reduced by all other
credits allowed under this chapter.
(4)
'Pass-through entity' means a partnership, an S-corporation, or a limited
liability company taxed as a partnership.
(5)
'Professional services' means those services specified in paragraph (2) of Code
Section 14-7-2 or any service which requires as a condition precedent to the
rendering of such service the obtaining of a license from a state licensing
board pursuant to Title 43.
(6)
'Qualified business' means a registered business that:
(A)
Is either a corporation, limited liability company, or a general or limited
partnership located in this state;
(B)
Was organized no more than three years before the qualified investment was
made;
(C)
Has its headquarters located in this state at the time the investment was made
and has maintained such headquarters for the entire time the qualified business
benefitted from the tax credit provided for pursuant to this Code
section;
(D)
Employs 20 or fewer people in this state at the time it is registered as a
qualified business;
(E)
Has had in any complete fiscal year before registration gross annual revenue as
determined in accordance with the Internal Revenue Code of $500,000.00 or less
on a consolidated basis;
(F)
Has not obtained during its existence more than $1 million in aggregate gross
cash proceeds from the issuance of its equity or debt investments, not including
commercial loans from chartered banking or savings and loan
institutions;
(G)
Has not utilized the tax credit described in Code Section
48-7-40.26;
(H)
Is primarily engaged in manufacturing, processing, online and digital
warehousing, online and digital wholesaling, software development, information
technology services, research and development, or a business providing services
other than those described in subparagraph (I) of this paragraph;
and
(I)
Does not engage substantially in:
(i)
Retail sales;
(ii)
Real estate or construction;
(iii)
Professional services;
(iv)
Gambling;
(v)
Natural resource extraction;
(vi)
Financial, brokerage, or investment activities or insurance; or
(vii)
Entertainment, amusement, recreation, or athletic or fitness activity for which
an admission or membership is charged.
A
business shall be substantially engaged in one of the above activities if its
gross revenue from such activity exceeds 25 percent of its gross revenues in any
fiscal year or it is established pursuant to its articles of incorporation,
articles of organization, operating agreement or similar organizational
documents to engage as one of its primary purposes such activity.
(7)
'Qualified investment' means an investment by a qualified investor of cash in a
qualified business for common or preferred stock or an equity interest or a
purchase for cash of qualified subordinated debt in a qualified business;
provided, however, that funds constituting a qualified investment cannot have
been raised or be raised as a result of other tax incentive programs.
Furthermore, no investment of common or preferred stock or an equity interest or
purchase of subordinated debt shall qualify as a qualified investment if a
broker fee or commission or a similar remuneration is paid or given directly or
indirectly for soliciting such investment or purchase.
(8)
'Qualified investor' means an accredited investor as that term is defined by the
United States Securities and Exchange Commission who is:
(A)
An individual person who is a resident of this state or a nonresident who is
obligated to pay taxes imposed by this chapter; or
(B)
A pass-through entity which is formed for investment purposes, has no business
operations, has committed capital under management of equal to or less than $5
million, and is not capitalized with funds raised or pooled through private
placement memoranda directed to institutional investors. A venture capital fund
or commodity fund with institutional investors or a hedge fund shall not qualify
as a qualified investor.
(9)
'Qualified subordinated debt' means indebtedness that is not secured, that may
or may not be convertible into common or preferred stock or other equity
interest, and that is subordinated in payment to all other indebtedness of the
qualified business issued or to be issued for money borrowed and no part of
which has a maturity date less than five years after the date such indebtedness
was purchased.
(10)
'Registered' or 'registration' means that a business has been certified by the
commissioner as a qualified business at the time of application to the
commissioner.
(c)
A qualified business shall register with the commissioner for purposes of this
Code section. Approval of such registration shall constitute certification by
the commissioner for 12 months after being issued. A business shall be
permitted to renew its registration with the commissioner so long as, at the
time of renewal, the business remains a qualified business.
(d)
Any individual person making a qualified investment directly in a qualified
business in the 2011, 2012, or 2013 calendar year shall be allowed a tax credit
of 20 percent of the amount invested against the tax imposed by this chapter
commencing on January 1 of the second year following the year in which the
qualified investment was made as provided in this Code section.
(e)
Any pass-through entity making a qualified investment directly in a qualified
business in the 2011, 2012, or 2013 calendar year shall be allowed a tax credit
of 20 percent of the amount invested against the tax imposed by this chapter
commencing on January 1 of the second year following the year in which the
qualified investment was made as provided in this Code section. Each individual
who is a shareholder, partner, or member of an entity shall be allocated the
credit allowed the pass-through entity in an amount determined in the same
manner as the proportionate shares of income or loss of such pass-through entity
would be determined. If an individual's share of the pass-through entity's
credit is limited due to the maximum allowable credit under this Code section
for a taxable year, the pass-through entity and its owners may not reallocate
the unused credit among the other owners.
(f)
Tax credits claimed pursuant to this Code section shall be subject to the
following conditions and limitations:
(1)
The qualified investor is not eligible for the credit for the taxable year in
which the qualified investment is made but shall be eligible for the credit for
the second taxable year beginning after the qualified investment is made as
provided in subsection (d) or (e) of this Code section;
(2)
The aggregate amount of credit allowed an individual for one or more qualified
investments in a single taxable year under this Code section, whether made
directly or by a pass-through entity and allocated to such individual, shall not
exceed $30,000.00;
(3)
In no event shall the amount of the tax credit allowed an individual under this
Code section for a taxable year exceed such individual's net income tax
liability. Any unused credit amount shall be allowed to be carried forward for
five years from the close of the taxable year in which the qualified investment
was made. No such credit shall be allowed against prior years' tax
liability;
(4)
The qualified investor's basis in the common or preferred stock, equity
interest, or subordinated debt acquired as a result of the qualified investment
shall be reduced for purposes of this chapter by the amount of the allowable
credit;
(5)
The credit shall not be transferrable by the qualified investor except to the
heirs and legatees of the qualified investor upon his or her death and to his or
her spouse or incident to divorce; and
(6)
To be eligible for the credit provided in this Code section, the qualified
investor must file an application for the credit with the commissioner on or
before June 30 of the year following the calendar year in which the qualified
investment was made.
(g)
The registration of a business as a qualified business shall be subject to the
following conditions and limitations:
(1)
If the commissioner finds that any of the information contained in an
application of a business for registration under this Code section is false, the
commissioner shall revoke the registration of such business. The commissioner
shall not revoke the registration of a business solely because it ceases
business operations for an indefinite period of time, as long as the business
renews its registration;
(2)
A registration as a qualified business may not be sold or otherwise transferred,
except that, if a qualified business enters into a merger, conversion,
consolidation, or other similar transaction with another business and the
surviving company would otherwise meet the criteria for being a qualified
business, the surviving company retains the registration for the 12 month
registration period without further application to the commissioner. In such a
case, the qualified business must provide the commissioner with written notice
of the merger, conversion, consolidation, or similar transaction and such other
information as required by the commissioner; and
(3)
The commissioner shall report to the House Committee on Ways and Means and the
Senate Finance Committee each year all of the businesses that have registered
with the commissioner as a qualified business. The report shall include the
name and address of each business, the location of its headquarters, a
description of the types of business in which it engages, the number of jobs
created by the business during the period covered by the report, and the average
wages paid by these jobs.
(h)
Any credit claimed under this Code section shall be recaptured in the following
situations and shall be subject to the following conditions and
limitations:
(1)
If within two years after the qualified investment was made, the qualified
investor transfers any of the securities or subordinated debt received in the
qualified investment to another person or entity, other than a transfer
resulting from one of the following:
(A)
The death of the qualified investor;
(B)
A transfer to the spouse of the qualified investor or incident to divorce;
or
(C)
A merger, conversion, consolidation, sale of the qualified business's assets, or
similar transaction requiring approval by the owners of the qualified business
under applicable law, to the extent the qualified investor does not receive cash
or tangible property in such merger, conversion, consolidation, sale, or other
similar transaction;
(2)
Except as provided in paragraph (1) of this subsection, if within five years
after the qualified investment was made, the qualified business makes a
redemption with respect to the securities received or pays any principal of the
subordinated debt;
(3)
If within two years after the qualified investment was made, the qualified
investor participates in the operation of the qualified business. For the
purpose of this paragraph, a qualified investor participates in the operation of
a qualified business if the qualified investor, or the qualified investor's
spouse, parent, sibling, or child, or a business controlled by any of these
individuals, provides services of any nature to the qualified business for
compensation, whether as an employee, a contractor, or otherwise. However, a
person who provides uncompensated professional advice to a qualified business
whether as an officer, a member of the board of directors or managers or
otherwise or participates in a stock or membership option or stock or membership
plan, or both, shall be eligible for the credit;
(4)
The amount of the credit recaptured shall apply only to the qualified investment
in the particular qualified business in which the investment was
made;
(5)
The amount of the recaptured tax credit determined under this subsection shall
be added to the qualified investor's income tax liability for the taxable year
in which the recapture occurs under this subsection; and
(6)
In the event the credit is recaptured because the qualified business ceases
business operations, dissolves, or liquidates, the qualified investor may claim
either the credit authorized under this Code section or any capital loss the
qualified investor otherwise would be able to claim regarding that qualified
business, but shall not be authorized to claim and be allowed both.
(i)(1)
A qualified investor seeking to claim a tax credit provided for under this Code
section must submit an application to the commissioner for tentative approval of
such tax credit between September 1 and October 31 of the year for which the tax
credit is claimed or allowed. The commissioner shall promulgate the rules and
forms on which the application is to be submitted. Amounts specified on such
application shall not be changed by the qualified investor after the application
is approved by the commissioner. The commissioner shall review such application
and shall tentatively approve such application upon determining that it meets
the requirements of this Code section.
(2)
The commissioner shall provide tentative approval of the applications by the
date provided in paragraph (3) of this subsection as follows:
(A)
The total aggregate amount of all tax credits allowed to qualified investors or
pass-through entities for investments made in the 2011 calendar year and claimed
and allowed in the 2013 taxable year shall not exceed $10 million in such
year;
(B)
The total aggregate amount of all tax credits allowed to qualified investors or
pass-through entities for investments made in the 2012 calendar year and claimed
and allowed in the 2014 taxable year shall not exceed $10 million in such year;
and
(C)
The total aggregate amount of all tax credits allowed to qualified investors or
pass-through entities for investments made in the 2013 calendar year and claimed
and allowed in the 2015 taxable year shall not exceed $10 million in such
year.
(3)
The commissioner shall notify each qualified investor of the tax credits
tentatively approved and allocated to such qualified investor by December 31 of
the year in which the application was submitted. In the event that the credit
amounts on the tax credit applications filed with the commissioner exceed the
maximum aggregate limit of tax credits under this subsection, then the tax
credits shall be allocated among the qualified investors who filed a timely
application on a pro rata basis based upon the amounts otherwise allowed by this
Code section. Once the tax credit application has been approved and the amount
approved has been communicated to the applicant, the qualified investor may then
apply the amount of the approved tax credit to its tax liability for the tax
year for which the approved application applies.
(j)
The commissioner shall promulgate any rules and regulations necessary to
implement and administer this Code
section."
SECTION
7.
Said
title is further amended in Code Section 48-8-3, relating to exemptions from
state sales and use tax, by revising subparagraph (A) of paragraph (7.05) as
follows:
"(7.05)(A)
For the period commencing on July 1,
2008
2010,
and ending on June 30,
2010
2012,
sales of tangible personal property to a nonprofit health center in this state
which has been established under the authority of and is receiving funds
pursuant to the United States Public Health Service Act, 42 U. S. C. Section
254b if such health clinic obtains an exemption determination letter from the
commissioner."
SECTION
8.
Said
title is further amended in said Code section by revising paragraph (7.3) as
follows:
"(7.3)
For the period commencing July 1,
2008
2010,
and ending June 30,
2010
2012,
sales of tangible personal property and services to a nonprofit volunteer health
clinic which primarily treats indigent persons with incomes below 200 percent of
the federal poverty level and which property and services are used exclusively
by such volunteer health clinic in performing a general treatment function in
this state when such volunteer health clinic is a tax exempt organization under
the Internal Revenue Code and obtains an exemption determination letter from the
commissioner;"
SECTION
9.
Said
title is further amended in said Code section in paragraph (85) by revising
subparagraph (E) as follows:
"(E)
This paragraph shall stand repealed in its entirety on July 1,
2010
2012;".
SECTION
10.
Said
title is further amended by revising Article 4 of Chapter 13, relating to the
corporate net worth tax, in its entirety as follows:
"ARTICLE
4
48-13-70.
(a)
For net worth taxable years beginning on or after January 1, 2012, there shall
be no corporate net worth taxes whatsoever levied or collected under this
article and no corporate net worth returns are required.
(b)
Tax, penalty, and interest liabilities and refund eligibility for prior net
worth taxable years shall not be affected by the enactment of this revised
article and shall continue to be governed by the provisions of this article as
it existed immediately prior to January 1, 2012.
(c)
The revision of this article pursuant to this Code section shall not abate any
prosecution, punishment, penalty, administrative proceedings or remedies, or
civil action related to any violation of law committed prior to January 1,
2012."
SECTION
11.
(a)
Except as otherwise provided in subsection (b) of this section, this Act shall
become effective upon its approval by the Governor or upon its becoming law
without such approval.
(b)(1)
Sections 2, 7, 8, and 9 of this Act shall become effective on July 1,
2010.
(2)
Section 10 of this Act shall become effective on January 1, 2012.
SECTION
12.
All
laws and parts of laws in conflict with this Act are repealed.