O.C.G.A. § 48-7-40-2 — GA Code / Title 48 / Chapter 7 / Section 48-7-40-2
Georgia Code Title 48. Revenue and Taxation § 48-7-40.2
Status: repealed

(a) As used in this Code section, the term: (1) “ Product ” means a marketable product or component of a product which has an economic value to the wholesale or retail consumer and is ready to be used without further alteration of its form, or a product or material which is marketed as a prepared material or is a component in the manufacturing and assembly of other finished products. (2) “ Qualified investment property ” means all real and personal property purchased or acquired by a taxpayer for use in the construction of an additional manufacturing or telecommunications facility to be located in this state or the expansion of an existing manufacturing or telecommunications facility located in this state, including, but not limited to, amounts expended on land acquisition, improvements, buildings, building improvements, and machinery and equipment to be used in the manufacturing or telecommunications facility. The department shall promulgate rules defining eligible manufacturing facilities, telecommunications facilities, and qualified investment property pursuant to this paragraph. (3) “ Recovered materials ” means those materials, including, but not limited to, such materials as aluminum, oil, plastic, paper, paper products, scrap metal, iron, glass, and rubber, which have known use, reuse, or recycling potential; can be feasibly used, reused, or recycled; and have been diverted or removed from the solid waste stream for sale, use, reuse, or recycling, whether or not requiring subsequent separation and processing. (4) “ Recycling ” means any process by which materials which would otherwise become solid waste are collected, separated, or processed and reused or returned to use in the form of raw materials or products. (5) “ Recycling machinery and equipment ” means all tangible personal property used, directly or indirectly, to sort, store, prepare, convert, process, fabricate, or manufacture recovered materials into finished products which are composed of at least 25 percent recovered materials, such term including, but not being limited to, power generation and pollution control machinery and equipment. (6) “ Recycling manufacturing facility ” means any facility, including land, improvements to land, buildings, building improvements, and any recycling machinery and equipment used in the recycling process resulting in the manufacture of finished products from recovered materials, provided that up to 10 percent of any building that is a component of a recycling facility may be used for office space to house support staff for the recycling operation. (7) “ Rural county ” means a county that has a population of less than 50,000 with 10 percent or more of such population living in poverty based upon the most recent, reliable, and applicable data published by the United States Bureau of the Census. On or before December 31 of each year, the commissioner of the Department of Community Affairs shall publish a list of such counties.

(a) As used in this Code section, the term:

(1) “ Product ” means a marketable product or component of a product which has an economic value to the wholesale or retail consumer and is ready to be used without further alteration of its form, or a product or material which is marketed as a prepared material or is a component in the manufacturing and assembly of other finished products.

(1) “ Product ” means a marketable product or component of a product which has an economic value to the wholesale or retail consumer and is ready to be used without further alteration of its form, or a product or material which is marketed as a prepared material or is a component in the manufacturing and assembly of other finished products.

(2) “ Qualified investment property ” means all real and personal property purchased or acquired by a taxpayer for use in the construction of an additional manufacturing or telecommunications facility to be located in this state or the expansion of an existing manufacturing or telecommunications facility located in this state, including, but not limited to, amounts expended on land acquisition, improvements, buildings, building improvements, and machinery and equipment to be used in the manufacturing or telecommunications facility. The department shall promulgate rules defining eligible manufacturing facilities, telecommunications facilities, and qualified investment property pursuant to this paragraph.

(2) “ Qualified investment property ” means all real and personal property purchased or acquired by a taxpayer for use in the construction of an additional manufacturing or telecommunications facility to be located in this state or the expansion of an existing manufacturing or telecommunications facility located in this state, including, but not limited to, amounts expended on land acquisition, improvements, buildings, building improvements, and machinery and equipment to be used in the manufacturing or telecommunications facility. The department shall promulgate rules defining eligible manufacturing facilities, telecommunications facilities, and qualified investment property pursuant to this paragraph.

(3) “ Recovered materials ” means those materials, including, but not limited to, such materials as aluminum, oil, plastic, paper, paper products, scrap metal, iron, glass, and rubber, which have known use, reuse, or recycling potential; can be feasibly used, reused, or recycled; and have been diverted or removed from the solid waste stream for sale, use, reuse, or recycling, whether or not requiring subsequent separation and processing.

(3) “ Recovered materials ” means those materials, including, but not limited to, such materials as aluminum, oil, plastic, paper, paper products, scrap metal, iron, glass, and rubber, which have known use, reuse, or recycling potential; can be feasibly used, reused, or recycled; and have been diverted or removed from the solid waste stream for sale, use, reuse, or recycling, whether or not requiring subsequent separation and processing.

(4) “ Recycling ” means any process by which materials which would otherwise become solid waste are collected, separated, or processed and reused or returned to use in the form of raw materials or products.

(4) “ Recycling ” means any process by which materials which would otherwise become solid waste are collected, separated, or processed and reused or returned to use in the form of raw materials or products.

(5) “ Recycling machinery and equipment ” means all tangible personal property used, directly or indirectly, to sort, store, prepare, convert, process, fabricate, or manufacture recovered materials into finished products which are composed of at least 25 percent recovered materials, such term including, but not being limited to, power generation and pollution control machinery and equipment.

(5) “ Recycling machinery and equipment ” means all tangible personal property used, directly or indirectly, to sort, store, prepare, convert, process, fabricate, or manufacture recovered materials into finished products which are composed of at least 25 percent recovered materials, such term including, but not being limited to, power generation and pollution control machinery and equipment.

(6) “ Recycling manufacturing facility ” means any facility, including land, improvements to land, buildings, building improvements, and any recycling machinery and equipment used in the recycling process resulting in the manufacture of finished products from recovered materials, provided that up to 10 percent of any building that is a component of a recycling facility may be used for office space to house support staff for the recycling operation.

(6) “ Recycling manufacturing facility ” means any facility, including land, improvements to land, buildings, building improvements, and any recycling machinery and equipment used in the recycling process resulting in the manufacture of finished products from recovered materials, provided that up to 10 percent of any building that is a component of a recycling facility may be used for office space to house support staff for the recycling operation.

(7) “ Rural county ” means a county that has a population of less than 50,000 with 10 percent or more of such population living in poverty based upon the most recent, reliable, and applicable data published by the United States Bureau of the Census. On or before December 31 of each year, the commissioner of the Department of Community Affairs shall publish a list of such counties.

(7) “ Rural county ” means a county that has a population of less than 50,000 with 10 percent or more of such population living in poverty based upon the most recent, reliable, and applicable data published by the United States Bureau of the Census. On or before December 31 of each year, the commissioner of the Department of Community Affairs shall publish a list of such counties.

(b) In the case of a taxpayer which has operated for the immediately preceding three years an existing manufacturing or telecommunications facility or a manufacturing or telecommunications support facility in this state in a tier 1 county designated pursuant to Code Section 48-7-40 , there shall be allowed a credit against the tax imposed under this article in an amount equal to 5 percent of the cost of all qualified investment property purchased or acquired by the taxpayer in such year, subject to the conditions and limitations set forth in this Code section. In the event such qualified investment property purchased or acquired by the taxpayer in such year consists of recycling machinery or equipment, a recycling manufacturing facility, pollution control or prevention machinery or equipment, a pollution control or prevention facility, or the conversion from defense to domestic production, the amount of such credit shall be equal to 8 percent.

(b) In the case of a taxpayer which has operated for the immediately preceding three years an existing manufacturing or telecommunications facility or a manufacturing or telecommunications support facility in this state in a tier 1 county designated pursuant to Code Section 48-7-40 , there shall be allowed a credit against the tax imposed under this article in an amount equal to 5 percent of the cost of all qualified investment property purchased or acquired by the taxpayer in such year, subject to the conditions and limitations set forth in this Code section. In the event such qualified investment property purchased or acquired by the taxpayer in such year consists of recycling machinery or equipment, a recycling manufacturing facility, pollution control or prevention machinery or equipment, a pollution control or prevention facility, or the conversion from defense to domestic production, the amount of such credit shall be equal to 8 percent.

(c) The credit granted under subsection (b) of this Code section shall be subject to the following conditions and limitations: (1) In order to qualify as a basis for the credit, the investment in qualified investment property must occur no sooner than January 1, 1995. The credit may be taken beginning with the tax year immediately following the tax year in which the qualified investment property having an aggregate cost in excess of $50,000.00 is purchased or acquired by the taxpayer; provided, however, that for tax years beginning on or after January 1, 2020, the credit may only be taken beginning with the tax year immediately following the tax year in which the qualified investment property having an aggregate cost in excess of $100,000.00 is purchased or acquired by the taxpayer. For every year in which a taxpayer claims the credit, the taxpayer shall attach a schedule to the taxpayer's Georgia income tax return which will set forth the following information, as a minimum: (A) A description of the project; (B) The amount of qualified investment property acquired during the taxable year; (C) The amount of tax credit claimed for the taxable year; (D) The amount of qualified investment property acquired in prior taxable years; (E) Any tax credit utilized by the taxpayer in prior taxable years; (F) The amount of tax credit carried over from prior years; (G) The amount of tax credit utilized by the taxpayer in the current taxable year; and (H) The amount of tax credit to be carried over to subsequent tax years; (2)(A) Any credit claimed under this Code section but not used in any taxable year may be carried forward for ten years from the close of the taxable year in which the qualified investment property was acquired, provided that such qualified investment property remains in service: (B)(i) The credit established by this Code section taken in any one taxable year shall be limited to an amount not greater than 50 percent of the taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year. (ii) Notwithstanding division (i) of this subparagraph, for credit earned pursuant to this Code section from purchases of qualified investment property for a manufacturing or telecommunications facility in a rural county made on or after January 1, 2020, such credit shall: (I) First be applied to such taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year, limited to 50 percent of such liability before application of such credit; and (II) If the amount of such credit exceeds the limit set forth in subdivision (I) of this division, the excess may be taken as a credit of up to $1 million for any one taxable year against such taxpayer's quarterly or monthly payments under Code Section 48-7-103 , provided that such $1 million limit shall be reduced by any amount taken by such taxpayer pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 . Each employee for whom an employer receives credit against such employer's quarterly or monthly payment under Code Section 48-7-103 shall receive credit against his or her income tax liability under Code Section 48-7-20 for the corresponding taxable year for the full amount which would be credited against such liability prior to the application of the credit provided for in this paragraph. Credits against quarterly or monthly payments under Code Section 48-7-103 and credits against liability under Code Section 48-7-20 established by this subparagraph shall not constitute income to the employee; provided, however, that credit allowed and used pursuant to subdivision (II) of this division and pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 shall not exceed $10 million in aggregate for all taxpayers for any calendar year. The commissioner shall establish an application process to ensure that the $10 million aggregate maximum and the $1 million per taxpayer maximum are not exceeded. If applications for such credit exceed $10 million for the calendar year, the commissioner shall allow for the credit to be applied to all eligible applicants in prorated amounts among such applicants, not to exceed $10 million for the calendar year. (C) The sale, merger, acquisition, or bankruptcy of any taxpayer shall not create new eligibility in any succeeding taxpayer, but any unused credit may be transferred and continued by any transferee of the taxpayer; (D) The automatic repeal of paragraph (2.1) of this subsection on December 31, 2024, shall not impair or affect a taxpayer's ability or right to apply an unused credit for a taxable year after December 31, 2024, that such taxpayer accrued pursuant to and under the conditions of said paragraph prior to its automatic repeal. (2.1)(A) Any credit claimed prior to January 1, 2020, pursuant to this Code section by a taxpayer that remains unused by such taxpayer may be applied pursuant to subparagraph (B) of this paragraph for any taxable year beginning on or after January 1, 2020, for which such credit may be carried forward pursuant to paragraph (2) of this subsection provided that within a single taxable year beginning on or after January 1, 2020, such taxpayer: (i) Maintains within rural counties at least 100 full-time employee jobs as such term is defined in Code Section 48-7-40.24 ; and (ii) Purchases or acquires at least $5 million of qualified investment property for manufacturing or telecommunications facilities within rural counties. (B) Subject to the requirements established by subparagraph (A) of this paragraph, a taxpayer may elect to apply such credit that has been carried forward as allowed pursuant to division (ii) of subparagraph (B) of paragraph (2) of this Code section. (C)(i) Qualified investment property purchased or acquired in connection with division (ii) of subparagraph (A) of this paragraph may be eligible for credit granted under subsection (b) of this Code section, provided that the conditions for such credit are met independently of this paragraph. Any such new credit earned shall be applied as provided in paragraph (2) of this subsection. (ii) For the taxable year in which the jobs that are required to be maintained in division (i) of subparagraph (A) of this subsection are maintained, such jobs shall not be eligible to be used or claimed as the basis for any other tax credit or benefit allowed by state law. (D) This paragraph shall not extend the carry forward period for any credit. (E) This paragraph shall stand repealed by operation of law on the last moment of December 31, 2024; (3) In the initial year in which the taxpayer claims the credit granted in subsection (b) of this Code section, the taxpayer shall include in the description of the project required by subparagraph (A) of paragraph (1) of this subsection, information which demonstrates that the project includes the acquisition of qualified investment property having an aggregate cost in excess of the amount required by paragraph (1) of this subsection; (4) Any lease for a period of five years or longer of any real or personal property used in a new or expanded manufacturing or telecommunications facility which would otherwise constitute qualified investment property shall be treated as the purchase or acquisition of qualified investment property by the lessee. The taxpayer may treat the full value of the leased property as qualified investment property in the taxable year in which the lease becomes binding on the lessor and the taxpayer if all other conditions of this subsection have been met; and (5) The utilization of the credit granted in subsection (b) of this Code section shall have no effect on the taxpayer's ability to claim depreciation for tax purposes on the assets acquired by the taxpayer, nor shall the credit have any effect on the taxpayer's basis in such assets for the purpose of depreciation. (d) No taxpayer shall be authorized to claim on a tax return for a given project the credit provided for in this Code section if such taxpayer claims on such tax return any of the credits authorized under Code Section 48-7-40 or 48-7-40.1 .

(c) The credit granted under subsection (b) of this Code section shall be subject to the following conditions and limitations:

(1) In order to qualify as a basis for the credit, the investment in qualified investment property must occur no sooner than January 1, 1995. The credit may be taken beginning with the tax year immediately following the tax year in which the qualified investment property having an aggregate cost in excess of $50,000.00 is purchased or acquired by the taxpayer; provided, however, that for tax years beginning on or after January 1, 2020, the credit may only be taken beginning with the tax year immediately following the tax year in which the qualified investment property having an aggregate cost in excess of $100,000.00 is purchased or acquired by the taxpayer. For every year in which a taxpayer claims the credit, the taxpayer shall attach a schedule to the taxpayer's Georgia income tax return which will set forth the following information, as a minimum: (A) A description of the project; (B) The amount of qualified investment property acquired during the taxable year; (C) The amount of tax credit claimed for the taxable year; (D) The amount of qualified investment property acquired in prior taxable years; (E) Any tax credit utilized by the taxpayer in prior taxable years; (F) The amount of tax credit carried over from prior years; (G) The amount of tax credit utilized by the taxpayer in the current taxable year; and (H) The amount of tax credit to be carried over to subsequent tax years;

(1) In order to qualify as a basis for the credit, the investment in qualified investment property must occur no sooner than January 1, 1995. The credit may be taken beginning with the tax year immediately following the tax year in which the qualified investment property having an aggregate cost in excess of $50,000.00 is purchased or acquired by the taxpayer; provided, however, that for tax years beginning on or after January 1, 2020, the credit may only be taken beginning with the tax year immediately following the tax year in which the qualified investment property having an aggregate cost in excess of $100,000.00 is purchased or acquired by the taxpayer. For every year in which a taxpayer claims the credit, the taxpayer shall attach a schedule to the taxpayer's Georgia income tax return which will set forth the following information, as a minimum:

(A) A description of the project;

(A) A description of the project;

(B) The amount of qualified investment property acquired during the taxable year;

(B) The amount of qualified investment property acquired during the taxable year;

(C) The amount of tax credit claimed for the taxable year;

(C) The amount of tax credit claimed for the taxable year;

(D) The amount of qualified investment property acquired in prior taxable years;

(D) The amount of qualified investment property acquired in prior taxable years;

(E) Any tax credit utilized by the taxpayer in prior taxable years;

(E) Any tax credit utilized by the taxpayer in prior taxable years;

(F) The amount of tax credit carried over from prior years;

(F) The amount of tax credit carried over from prior years;

(G) The amount of tax credit utilized by the taxpayer in the current taxable year; and

(G) The amount of tax credit utilized by the taxpayer in the current taxable year; and

(H) The amount of tax credit to be carried over to subsequent tax years;

(H) The amount of tax credit to be carried over to subsequent tax years;

(2)(A) Any credit claimed under this Code section but not used in any taxable year may be carried forward for ten years from the close of the taxable year in which the qualified investment property was acquired, provided that such qualified investment property remains in service: (B)(i) The credit established by this Code section taken in any one taxable year shall be limited to an amount not greater than 50 percent of the taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year. (ii) Notwithstanding division (i) of this subparagraph, for credit earned pursuant to this Code section from purchases of qualified investment property for a manufacturing or telecommunications facility in a rural county made on or after January 1, 2020, such credit shall: (I) First be applied to such taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year, limited to 50 percent of such liability before application of such credit; and (II) If the amount of such credit exceeds the limit set forth in subdivision (I) of this division, the excess may be taken as a credit of up to $1 million for any one taxable year against such taxpayer's quarterly or monthly payments under Code Section 48-7-103 , provided that such $1 million limit shall be reduced by any amount taken by such taxpayer pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 . Each employee for whom an employer receives credit against such employer's quarterly or monthly payment under Code Section 48-7-103 shall receive credit against his or her income tax liability under Code Section 48-7-20 for the corresponding taxable year for the full amount which would be credited against such liability prior to the application of the credit provided for in this paragraph. Credits against quarterly or monthly payments under Code Section 48-7-103 and credits against liability under Code Section 48-7-20 established by this subparagraph shall not constitute income to the employee; provided, however, that credit allowed and used pursuant to subdivision (II) of this division and pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 shall not exceed $10 million in aggregate for all taxpayers for any calendar year. The commissioner shall establish an application process to ensure that the $10 million aggregate maximum and the $1 million per taxpayer maximum are not exceeded. If applications for such credit exceed $10 million for the calendar year, the commissioner shall allow for the credit to be applied to all eligible applicants in prorated amounts among such applicants, not to exceed $10 million for the calendar year. (C) The sale, merger, acquisition, or bankruptcy of any taxpayer shall not create new eligibility in any succeeding taxpayer, but any unused credit may be transferred and continued by any transferee of the taxpayer; (D) The automatic repeal of paragraph (2.1) of this subsection on December 31, 2024, shall not impair or affect a taxpayer's ability or right to apply an unused credit for a taxable year after December 31, 2024, that such taxpayer accrued pursuant to and under the conditions of said paragraph prior to its automatic repeal.

(2)(A) Any credit claimed under this Code section but not used in any taxable year may be carried forward for ten years from the close of the taxable year in which the qualified investment property was acquired, provided that such qualified investment property remains in service:

(2)(A) Any credit claimed under this Code section but not used in any taxable year may be carried forward for ten years from the close of the taxable year in which the qualified investment property was acquired, provided that such qualified investment property remains in service:

(B)(i) The credit established by this Code section taken in any one taxable year shall be limited to an amount not greater than 50 percent of the taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year. (ii) Notwithstanding division (i) of this subparagraph, for credit earned pursuant to this Code section from purchases of qualified investment property for a manufacturing or telecommunications facility in a rural county made on or after January 1, 2020, such credit shall: (I) First be applied to such taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year, limited to 50 percent of such liability before application of such credit; and (II) If the amount of such credit exceeds the limit set forth in subdivision (I) of this division, the excess may be taken as a credit of up to $1 million for any one taxable year against such taxpayer's quarterly or monthly payments under Code Section 48-7-103 , provided that such $1 million limit shall be reduced by any amount taken by such taxpayer pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 . Each employee for whom an employer receives credit against such employer's quarterly or monthly payment under Code Section 48-7-103 shall receive credit against his or her income tax liability under Code Section 48-7-20 for the corresponding taxable year for the full amount which would be credited against such liability prior to the application of the credit provided for in this paragraph. Credits against quarterly or monthly payments under Code Section 48-7-103 and credits against liability under Code Section 48-7-20 established by this subparagraph shall not constitute income to the employee; provided, however, that credit allowed and used pursuant to subdivision (II) of this division and pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 shall not exceed $10 million in aggregate for all taxpayers for any calendar year. The commissioner shall establish an application process to ensure that the $10 million aggregate maximum and the $1 million per taxpayer maximum are not exceeded. If applications for such credit exceed $10 million for the calendar year, the commissioner shall allow for the credit to be applied to all eligible applicants in prorated amounts among such applicants, not to exceed $10 million for the calendar year.

(B)(i) The credit established by this Code section taken in any one taxable year shall be limited to an amount not greater than 50 percent of the taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year.

(B)(i) The credit established by this Code section taken in any one taxable year shall be limited to an amount not greater than 50 percent of the taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year.

(ii) Notwithstanding division (i) of this subparagraph, for credit earned pursuant to this Code section from purchases of qualified investment property for a manufacturing or telecommunications facility in a rural county made on or after January 1, 2020, such credit shall: (I) First be applied to such taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year, limited to 50 percent of such liability before application of such credit; and (II) If the amount of such credit exceeds the limit set forth in subdivision (I) of this division, the excess may be taken as a credit of up to $1 million for any one taxable year against such taxpayer's quarterly or monthly payments under Code Section 48-7-103 , provided that such $1 million limit shall be reduced by any amount taken by such taxpayer pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 . Each employee for whom an employer receives credit against such employer's quarterly or monthly payment under Code Section 48-7-103 shall receive credit against his or her income tax liability under Code Section 48-7-20 for the corresponding taxable year for the full amount which would be credited against such liability prior to the application of the credit provided for in this paragraph. Credits against quarterly or monthly payments under Code Section 48-7-103 and credits against liability under Code Section 48-7-20 established by this subparagraph shall not constitute income to the employee; provided, however, that credit allowed and used pursuant to subdivision (II) of this division and pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 shall not exceed $10 million in aggregate for all taxpayers for any calendar year. The commissioner shall establish an application process to ensure that the $10 million aggregate maximum and the $1 million per taxpayer maximum are not exceeded. If applications for such credit exceed $10 million for the calendar year, the commissioner shall allow for the credit to be applied to all eligible applicants in prorated amounts among such applicants, not to exceed $10 million for the calendar year.

(ii) Notwithstanding division (i) of this subparagraph, for credit earned pursuant to this Code section from purchases of qualified investment property for a manufacturing or telecommunications facility in a rural county made on or after January 1, 2020, such credit shall:

(I) First be applied to such taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year, limited to 50 percent of such liability before application of such credit; and

(I) First be applied to such taxpayer's state income tax liability which is attributable to income derived from operations in this state for that taxable year, limited to 50 percent of such liability before application of such credit; and

(II) If the amount of such credit exceeds the limit set forth in subdivision (I) of this division, the excess may be taken as a credit of up to $1 million for any one taxable year against such taxpayer's quarterly or monthly payments under Code Section 48-7-103 , provided that such $1 million limit shall be reduced by any amount taken by such taxpayer pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 . Each employee for whom an employer receives credit against such employer's quarterly or monthly payment under Code Section 48-7-103 shall receive credit against his or her income tax liability under Code Section 48-7-20 for the corresponding taxable year for the full amount which would be credited against such liability prior to the application of the credit provided for in this paragraph. Credits against quarterly or monthly payments under Code Section 48-7-103 and credits against liability under Code Section 48-7-20 established by this subparagraph shall not constitute income to the employee;

(II) If the amount of such credit exceeds the limit set forth in subdivision (I) of this division, the excess may be taken as a credit of up to $1 million for any one taxable year against such taxpayer's quarterly or monthly payments under Code Section 48-7-103 , provided that such $1 million limit shall be reduced by any amount taken by such taxpayer pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 . Each employee for whom an employer receives credit against such employer's quarterly or monthly payment under Code Section 48-7-103 shall receive credit against his or her income tax liability under Code Section 48-7-20 for the corresponding taxable year for the full amount which would be credited against such liability prior to the application of the credit provided for in this paragraph. Credits against quarterly or monthly payments under Code Section 48-7-103 and credits against liability under Code Section 48-7-20 established by this subparagraph shall not constitute income to the employee;

provided, however, that credit allowed and used pursuant to subdivision (II) of this division and pursuant to subdivision (c)(2)(B)(ii)(II) of Code Section 48-7-40.3 shall not exceed $10 million in aggregate for all taxpayers for any calendar year. The commissioner shall establish an application process to ensure that the $10 million aggregate maximum and the $1 million per taxpayer maximum are not exceeded. If applications for such credit exceed $10 million for the calendar year, the commissioner shall allow for the credit to be applied to all eligible applicants in prorated amounts among such applicants, not to exceed $10 million for the calendar year.

(C) The sale, merger, acquisition, or bankruptcy of any taxpayer shall not create new eligibility in any succeeding taxpayer, but any unused credit may be transferred and continued by any transferee of the taxpayer;

(C) The sale, merger, acquisition, or bankruptcy of any taxpayer shall not create new eligibility in any succeeding taxpayer, but any unused credit may be transferred and continued by any transferee of the taxpayer;

(D) The automatic repeal of paragraph (2.1) of this subsection on December 31, 2024, shall not impair or affect a taxpayer's ability or right to apply an unused credit for a taxable year after December 31, 2024, that such taxpayer accrued pursuant to and under the conditions of said paragraph prior to its automatic repeal.

(D) The automatic repeal of paragraph (2.1) of this subsection on December 31, 2024, shall not impair or affect a taxpayer's ability or right to apply an unused credit for a taxable year after December 31, 2024, that such taxpayer accrued pursuant to and under the conditions of said paragraph prior to its automatic repeal.

(2.1)(A) Any credit claimed prior to January 1, 2020, pursuant to this Code section by a taxpayer that remains unused by such taxpayer may be applied pursuant to subparagraph (B) of this paragraph for any taxable year beginning on or after January 1, 2020, for which such credit may be carried forward pursuant to paragraph (2) of this subsection provided that within a single taxable year beginning on or after January 1, 2020, such taxpayer: (i) Maintains within rural counties at least 100 full-time employee jobs as such term is defined in Code Section 48-7-40.24 ; and (ii) Purchases or acquires at least $5 million of qualified investment property for manufacturing or telecommunications facilities within rural counties. (B) Subject to the requirements established by subparagraph (A) of this paragraph, a taxpayer may elect to apply such credit that has been carried forward as allowed pursuant to division (ii) of subparagraph (B) of paragraph (2) of this Code section. (C)(i) Qualified investment property purchased or acquired in connection with division (ii) of subparagraph (A) of this paragraph may be eligible for credit granted under subsection (b) of this Code section, provided that the conditions for such credit are met independently of this paragraph. Any such new credit earned shall be applied as provided in paragraph (2) of this subsection. (ii) For the taxable year in which the jobs that are required to be maintained in division (i) of subparagraph (A) of this subsection are maintained, such jobs shall not be eligible to be used or claimed as the basis for any other tax credit or benefit allowed by state law. (D) This paragraph shall not extend the carry forward period for any credit. (E) This paragraph shall stand repealed by operation of law on the last moment of December 31, 2024;

(2.1)(A) Any credit claimed prior to January 1, 2020, pursuant to this Code section by a taxpayer that remains unused by such taxpayer may be applied pursuant to subparagraph (B) of this paragraph for any taxable year beginning on or after January 1, 2020, for which such credit may be carried forward pursuant to paragraph (2) of this subsection provided that within a single taxable year beginning on or after January 1, 2020, such taxpayer: (i) Maintains within rural counties at least 100 full-time employee jobs as such term is defined in Code Section 48-7-40.24 ; and (ii) Purchases or acquires at least $5 million of qualified investment property for manufacturing or telecommunications facilities within rural counties.

(2.1)(A) Any credit claimed prior to January 1, 2020, pursuant to this Code section by a taxpayer that remains unused by such taxpayer may be applied pursuant to subparagraph (B) of this paragraph for any taxable year beginning on or after January 1, 2020, for which such credit may be carried forward pursuant to paragraph (2) of this subsection provided that within a single taxable year beginning on or after January 1, 2020, such taxpayer:

(i) Maintains within rural counties at least 100 full-time employee jobs as such term is defined in Code Section 48-7-40.24 ; and

(i) Maintains within rural counties at least 100 full-time employee jobs as such term is defined in Code Section 48-7-40.24 ; and

(ii) Purchases or acquires at least $5 million of qualified investment property for manufacturing or telecommunications facilities within rural counties.

(ii) Purchases or acquires at least $5 million of qualified investment property for manufacturing or telecommunications facilities within rural counties.

(B) Subject to the requirements established by subparagraph (A) of this paragraph, a taxpayer may elect to apply such credit that has been carried forward as allowed pursuant to division (ii) of subparagraph (B) of paragraph (2) of this Code section.

(B) Subject to the requirements established by subparagraph (A) of this paragraph, a taxpayer may elect to apply such credit that has been carried forward as allowed pursuant to division (ii) of subparagraph (B) of paragraph (2) of this Code section.

(C)(i) Qualified investment property purchased or acquired in connection with division (ii) of subparagraph (A) of this paragraph may be eligible for credit granted under subsection (b) of this Code section, provided that the conditions for such credit are met independently of this paragraph. Any such new credit earned shall be applied as provided in paragraph (2) of this subsection. (ii) For the taxable year in which the jobs that are required to be maintained in division (i) of subparagraph (A) of this subsection are maintained, such jobs shall not be eligible to be used or claimed as the basis for any other tax credit or benefit allowed by state law.

(C)(i) Qualified investment property purchased or acquired in connection with division (ii) of subparagraph (A) of this paragraph may be eligible for credit granted under subsection (b) of this Code section, provided that the conditions for such credit are met independently of this paragraph. Any such new credit earned shall be applied as provided in paragraph (2) of this subsection.

(C)(i) Qualified investment property purchased or acquired in connection with division (ii) of subparagraph (A) of this paragraph may be eligible for credit granted under subsection (b) of this Code section, provided that the conditions for such credit are met independently of this paragraph. Any such new credit earned shall be applied as provided in paragraph (2) of this subsection.

(ii) For the taxable year in which the jobs that are required to be maintained in division (i) of subparagraph (A) of this subsection are maintained, such jobs shall not be eligible to be used or claimed as the basis for any other tax credit or benefit allowed by state law.

(ii) For the taxable year in which the jobs that are required to be maintained in division (i) of subparagraph (A) of this subsection are maintained, such jobs shall not be eligible to be used or claimed as the basis for any other tax credit or benefit allowed by state law.

(D) This paragraph shall not extend the carry forward period for any credit.

(D) This paragraph shall not extend the carry forward period for any credit.

(E) This paragraph shall stand repealed by operation of law on the last moment of December 31, 2024;

(E) This paragraph shall stand repealed by operation of law on the last moment of December 31, 2024;

(3) In the initial year in which the taxpayer claims the credit granted in subsection (b) of this Code section, the taxpayer shall include in the description of the project required by subparagraph (A) of paragraph (1) of this subsection, information which demonstrates that the project includes the acquisition of qualified investment property having an aggregate cost in excess of the amount required by paragraph (1) of this subsection;

(3) In the initial year in which the taxpayer claims the credit granted in subsection (b) of this Code section, the taxpayer shall include in the description of the project required by subparagraph (A) of paragraph (1) of this subsection, information which demonstrates that the project includes the acquisition of qualified investment property having an aggregate cost in excess of the amount required by paragraph (1) of this subsection;

(4) Any lease for a period of five years or longer of any real or personal property used in a new or expanded manufacturing or telecommunications facility which would otherwise constitute qualified investment property shall be treated as the purchase or acquisition of qualified investment property by the lessee. The taxpayer may treat the full value of the leased property as qualified investment property in the taxable year in which the lease becomes binding on the lessor and the taxpayer if all other conditions of this subsection have been met; and

(4) Any lease for a period of five years or longer of any real or personal property used in a new or expanded manufacturing or telecommunications facility which would otherwise constitute qualified investment property shall be treated as the purchase or acquisition of qualified investment property by the lessee. The taxpayer may treat the full value of the leased property as qualified investment property in the taxable year in which the lease becomes binding on the lessor and the taxpayer if all other conditions of this subsection have been met; and

(5) The utilization of the credit granted in subsection (b) of this Code section shall have no effect on the taxpayer's ability to claim depreciation for tax purposes on the assets acquired by the taxpayer, nor shall the credit have any effect on the taxpayer's basis in such assets for the purpose of depreciation.

(5) The utilization of the credit granted in subsection (b) of this Code section shall have no effect on the taxpayer's ability to claim depreciation for tax purposes on the assets acquired by the taxpayer, nor shall the credit have any effect on the taxpayer's basis in such assets for the purpose of depreciation.

(d) No taxpayer shall be authorized to claim on a tax return for a given project the credit provided for in this Code section if such taxpayer claims on such tax return any of the credits authorized under Code Section 48-7-40 or 48-7-40.1 .
O.C.G.A. § 48-2-7 — GA Code / Title 48 / Chapter 2 / Section 48-2-7
Georgia Code Title 48. Revenue and Taxation § 48-2-7
Status: in_force

(a) The commissioner shall: (1) Direct the affairs of the department in the administration and enforcement of all laws enacted for the purpose of raising revenues for this state by taxation or otherwise; (2) Supervise all tax administration throughout the state, subject to the sovereign rights of the counties to regulate their own affairs; (3) Assist local tax officials in every feasible manner when so requested by the local tax officials; (4) Make studies of taxation in this state and elsewhere with a view to improvement of administration and legislation affecting the people of this state. In this connection, he may assemble and publish in print or electronically such statistics and reports as he may deem advisable within the limitations of his appropriation; and (5) Submit to the Governor and to each regular session of the General Assembly an annual report of the conduct of his or her office. The commissioner shall not be required to distribute copies of the annual report to the members of the General Assembly but shall notify the members of the availability of the annual report in the manner which he or she deems to be most effective and efficient. As the chief revenue official of the state, he or she shall advise the Governor and the General Assembly on all matters relating to revenue.

(a) The commissioner shall:

(1) Direct the affairs of the department in the administration and enforcement of all laws enacted for the purpose of raising revenues for this state by taxation or otherwise;

(1) Direct the affairs of the department in the administration and enforcement of all laws enacted for the purpose of raising revenues for this state by taxation or otherwise;

(2) Supervise all tax administration throughout the state, subject to the sovereign rights of the counties to regulate their own affairs;

(2) Supervise all tax administration throughout the state, subject to the sovereign rights of the counties to regulate their own affairs;

(3) Assist local tax officials in every feasible manner when so requested by the local tax officials;

(3) Assist local tax officials in every feasible manner when so requested by the local tax officials;

(4) Make studies of taxation in this state and elsewhere with a view to improvement of administration and legislation affecting the people of this state. In this connection, he may assemble and publish in print or electronically such statistics and reports as he may deem advisable within the limitations of his appropriation; and

(4) Make studies of taxation in this state and elsewhere with a view to improvement of administration and legislation affecting the people of this state. In this connection, he may assemble and publish in print or electronically such statistics and reports as he may deem advisable within the limitations of his appropriation; and

(5) Submit to the Governor and to each regular session of the General Assembly an annual report of the conduct of his or her office. The commissioner shall not be required to distribute copies of the annual report to the members of the General Assembly but shall notify the members of the availability of the annual report in the manner which he or she deems to be most effective and efficient. As the chief revenue official of the state, he or she shall advise the Governor and the General Assembly on all matters relating to revenue.

(5) Submit to the Governor and to each regular session of the General Assembly an annual report of the conduct of his or her office. The commissioner shall not be required to distribute copies of the annual report to the members of the General Assembly but shall notify the members of the availability of the annual report in the manner which he or she deems to be most effective and efficient. As the chief revenue official of the state, he or she shall advise the Governor and the General Assembly on all matters relating to revenue.

(b) The commissioner shall annually prepare and publish in print or electronically statistics reasonably available with respect to the operations of Chapter 7 of this title, including classification of taxpayers and of income; the amounts allowed as deductions, exemptions, and credits; and any other facts deemed pertinent and valuable.

(b) The commissioner shall annually prepare and publish in print or electronically statistics reasonably available with respect to the operations of Chapter 7 of this title, including classification of taxpayers and of income; the amounts allowed as deductions, exemptions, and credits; and any other facts deemed pertinent and valuable.

(c) The provisions of this Code section enumerating the duties of the commissioner shall not be construed to exclude other duties assigned to the commissioner by law.

(c) The provisions of this Code section enumerating the duties of the commissioner shall not be construed to exclude other duties assigned to the commissioner by law.

(d) No provision of this chapter shall be construed to give the commissioner any power to: (1) Make assessments for ad valorem taxation or to collect such assessments from any taxpayer, except as specifically provided by law; or (2) Examine the books, records, inventories, or business of any taxpayer for any purpose other than determining liability for taxes collected directly by the commissioner, except as otherwise specifically provided by law.

(d) No provision of this chapter shall be construed to give the commissioner any power to:

(1) Make assessments for ad valorem taxation or to collect such assessments from any taxpayer, except as specifically provided by law; or

(1) Make assessments for ad valorem taxation or to collect such assessments from any taxpayer, except as specifically provided by law; or

(2) Examine the books, records, inventories, or business of any taxpayer for any purpose other than determining liability for taxes collected directly by the commissioner, except as otherwise specifically provided by law.

(2) Examine the books, records, inventories, or business of any taxpayer for any purpose other than determining liability for taxes collected directly by the commissioner, except as otherwise specifically provided by law.
O.C.G.A. § 48-7-21 — GA Code / Title 48 / Chapter 7 / Section 48-7-21
Georgia Code Title 48. Revenue and Taxation § 48-7-21
Status: in_force

<Text of section effective January 1, 2024. See, also, text of section 48-7-21 effective until January 1, 2024.>

(a) Every domestic corporation and every foreign corporation shall pay annually an income tax equivalent to 5.75 percent of its Georgia taxable net income. Georgia taxable net income of a corporation shall be the corporation's taxable income from property owned or from business done in this state. A corporation's taxable income from property owned or from business done in this state shall consist of the corporation's taxable income as defined in the Internal Revenue Code of 1986, with the adjustments provided for in subsection (b) of this Code section and allocated and apportioned as provided in Code Section 48-7-31 .

(a) Every domestic corporation and every foreign corporation shall pay annually an income tax equivalent to 5.75 percent of its Georgia taxable net income. Georgia taxable net income of a corporation shall be the corporation's taxable income from property owned or from business done in this state. A corporation's taxable income from property owned or from business done in this state shall consist of the corporation's taxable income as defined in the Internal Revenue Code of 1986, with the adjustments provided for in subsection (b) of this Code section and allocated and apportioned as provided in Code Section 48-7-31 .

(b)(1)(A) When interest income is derived from obligations of any state or political subdivision except this state and political subdivisions of this state, the interest income shall be added to taxable income to the extent that the interest income is not included in gross income for federal income tax purposes. Interest or dividends on obligations of any authority, commission, instrumentality, territory, or possession of the United States which by the laws of the United States are exempt from federal income tax but not from state income tax shall also be added to taxable income. (B) There shall be subtracted from taxable income interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent such interest or dividends are includable in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States. There shall also be subtracted from taxable income any income derived from the authorized activities of a domestic international banking facility operating pursuant to the provisions of Article 5A of Chapter 1 of Title 7, the “Domestic International Banking Facility Act,” and any income arising from the conduct of a banking business with persons or entities located outside the United States, its territories, or possessions. Any amount subtracted pursuant to this subparagraph shall be reduced by any interest expenses directly or indirectly attributable to the production of the interest or dividend income. (2) There shall be added to taxable income any taxes on, or measured by, net income or net profits paid or accrued within the taxable year imposed by the authority of the United States or any foreign country, by any state except the State of Georgia, or by any territory, county, school district, municipality, or other tax subdivision of any state, territory, or foreign country to the extent such taxes are deducted in determining federal taxable income. (3) No portion of any deductions or losses which occurred in a year in which the taxpayer was not subject to taxation in this state, including, but not limited to, net operating losses may be deducted in any tax year. When the federal adjusted gross income or net income of a corporation includes such deductions or losses, an adjustment deleting them shall be made under rules established by the commissioner. The provisions of this subsection shall not prohibit the carry-over of any deductions or losses, including, but not limited to, net operating losses of any taxpayer which were incurred in a year or years in which the taxpayer was subject to methods of taxation in this state other than the corporate income tax. (4) Income, losses, and deductions previously used in computing Georgia taxable income shall not again be used in computing Georgia taxable income. The commissioner shall provide for needed adjustments by regulation. (5) All elections under Section 338 of the Internal Revenue Code of 1986 shall also apply under this article. (6) This article shall not be construed to repeal any tax exemptions contained in other laws of this state not referred to in this article. Those exemptions and the exemptions provided for by federal law and treaty shall be deducted on forms provided by the commissioner. (7) All elections made by corporate taxpayers under the Internal Revenue Code of 1954 or the Internal Revenue Code of 1986 shall also apply under this article except elections involving consolidated corporate returns and Subchapter “S” elections which shall be treated as follows: (A)(i) Affiliated corporations which file a consolidated federal income tax return must file separate income tax returns with this state unless they elect to file a consolidated return as provided in paragraph (7.1) of this subsection. (ii) No depository financial institution shall be deprived of the benefit of any exemption, deduction, or credit authorized by this title as a consequence of its election to file otherwise lawful consolidated returns with its parent organization or any corporate subsidiaries with respect to any state or local tax levied against such depository financial institution as a result of this title. As used in this division, the term: (I) “Bank” means any financial institution chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a corporate structure authorizing the issuance of capital stock. (II) “Depository financial institution” means a “bank” or a “savings and loan association.” (III) “Savings and loan association” means any financial institution, other than a credit union, chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a mutual corporate form; (B) Subchapter “S” elections apply only if all stockholders are subject to tax in this state on their portion of the corporate income. If all nonresident stockholders pay the Georgia income tax on their portion of the corporate income, the election shall be allowed; and (C)(i) A Subchapter “S” corporation may annually make an irrevocable election, on its timely filed return under Code Section 48-7-51 , to pay the tax levied by this chapter at the entity level for the taxable period covered by such return. Such election must be made on or before the due date for filing the applicable income tax return, including any extensions which have been granted. (ii) Notwithstanding the provisions of subparagraph (B) of this paragraph, an electing Subchapter “S” corporation, with respect to a taxable period, shall pay an income tax equivalent to 5.75 percent of its net income as computed pursuant to this Code section, and allocated and apportioned pursuant to Code Section 48-7-31 , for such taxable period, and such shareholders shall not recognize their respective share of the portion of income on which tax was actually paid pursuant to this subparagraph. (iii) No electing Subchapter “S” corporation nor any of its shareholders shall be entitled to any credit under Code Section 48-7-28 with respect to such tax so paid or any deduction for such income under subsection (d) of Code Section 48-7-27 ; provided, however, that such electing Subchapter “S” corporation shall otherwise be eligible for credits provided by this chapter and shall be considered an “other entity” for purposes of Code Sections 48-7-29.16 , 48-7-29.20 , and 48-7-29.21 . (iv) The election under this subparagraph shall have no impact on the determination of the basis of the shareholders of an electing Subchapter “S” corporation in such shareholders' stock and indebtedness of such electing Subchapter “S” corporation, except that such shareholders' pro rata share of the tax paid or accrued by such electing Subchapter “S” corporation pursuant to such election shall be taken into account in determining such basis. (v) In computing the net income that is subject to taxation, the electing Subchapter “S” corporation shall not be allowed any deduction for taxes that are based on or measured by gross or net income or any other variant thereof. (vi) This subsection shall only apply to a Subchapter “S” corporation that is 100 percent directly owned and controlled by persons eligible to be shareholders of an “S” corporation under Section 1361 of the Internal Revenue Code of 1986 , as amended. (vii) As used in this subparagraph, the term: (I) “ Electing Subchapter ‘S' corporation ” means, with respect to a taxable period, a Subchapter “S” corporation that has made the election under this subparagraph with respect to such taxable period. (II) “ Subchapter ‘S' corporation ” means an entity subject to taxation under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986 1 and the regulations thereunder. (7.1)(A) As used in this paragraph, the term: (i) “ Georgia affiliated group ” means a group of corporations of which each member: (I) Is a member of an affiliated group as defined in 26 U.S.C. Section 1504 , provided that such affiliated group files a federal consolidated corporate income tax return; (II) Is subject to taxation under this chapter; (III) Is subject to taxation in Georgia, even after the application of Public Law 86-272 ( 15 U.S.C. Sections 381 - 384 ); (IV) Has the same taxable year; (V) Was a member of the affiliated group for the entire taxable year or was a member of the affiliated group for a portion of the taxable year if the member was subject to taxation under subsection (a) of this Code section during the entire portion of the taxable year during which it was not a member of the federal consolidated group; (VI) Apportions Georgia taxable income or loss separately for each corporation, unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; (VII) Allocates taxable income or loss separately for each corporation in accordance with Code Section 48-7-31 ; (VIII) Computes apportionable income or loss utilizing separate apportionment factors for each corporation in accordance with Code Section 48-7-31 , unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; and (IX) Combines and reports taxable income or loss on a single return for the Georgia affiliated group which includes all members of the affiliated group included on the federal consolidated corporate income tax return that are eligible under this Code section to be included in the Georgia affiliated group. (ii) “ Georgia consolidated return ” means a Georgia corporate income tax return filed on behalf of the members of a Georgia affiliated group in accordance with this Code section pursuant to the election made under this subsection. (B) A Georgia affiliated group may elect to file a Georgia consolidated return on an originally filed return, including extensions, if applicable. Under no circumstances may the department compel a taxpayer to file a Georgia consolidated return if the taxpayer has not so elected. (C) For purposes of allocation and apportionment, each member of a Georgia affiliated group shall be considered a separate taxpayer, and any taxable loss of a member of a Georgia affiliated group shall be deductible against the taxable income of any other member of the Georgia affiliated group only if and to the extent such loss is apportioned and allocated to Georgia. (D) The tax liability of the Georgia affiliated group shall be determined by applying the rate specified in subsection (a) of this Code section to the group's taxable income. The separate taxable income or loss of each corporation in the Georgia affiliated group shall be included in the consolidated taxable income or loss to the extent that its taxable income or loss is separately apportioned or allocated to the State of Georgia, as computed and determined in accordance with this chapter. (E) Each corporation in a Georgia affiliated group that files a Georgia consolidated return shall be jointly and severally liable for the group's Georgia income tax liability with respect to the taxable year, except that any corporation which was not a member of the Georgia affiliated group for the entire taxable year shall be jointly and severally liable only for the portion of the tax liability attributable to that part of the year during which the corporation was a member, prorated on a daily basis. (F) The election provided for in this subsection is irrevocable and is binding on both the department and the Georgia affiliated group for a period of five years without modification, notwithstanding the powers granted to the department under this title. At the end of the five-year period of filing a Georgia consolidated return, the taxpayer's election shall be automatically terminated. Upon the automatic termination of such election, the taxpayer may reelect to file a Georgia consolidated return. (G) Notwithstanding subparagraph (F) of this paragraph, due to the material change in the law and the procedure for qualification as a member of a Georgia affiliated group, a Georgia affiliated group filing a Georgia consolidated return under the provisions of this paragraph prior to May 5, 2022, shall have the option either to terminate its election with respect to tax years after the period covered by the last Georgia consolidated return due under this Code section or to continue filing a Georgia consolidated return under the previous criteria. (H) Nothing in this subsection shall be construed as allowing or requiring the filing of combined income tax returns under the unitary business concept. (I) The department shall promulgate regulations interpreting the provisions of this paragraph. (8) There shall be subtracted from taxable income dividends received by: (A) A corporation from sources outside the United States as defined in the Internal Revenue Code of 1986. For purposes of this subparagraph, dividends received by a corporation from sources outside of the United States shall include amounts treated as a dividend and income deemed to have been received under provisions of the Internal Revenue Code of 1986 by such corporation if such amounts could have been subtracted from taxable income under this paragraph, had such amounts actually been received. The deduction provided by Section 250 shall apply to the extent the same income was included in Georgia taxable net income. The deduction, exclusion, or subtraction provided by Section 245A, Section 965, or any other section of the Internal Revenue Code of 1986 shall not apply to the extent income has been subtracted pursuant to this subparagraph. Amounts to be subtracted under this subparagraph shall include the following unless excluded by this paragraph, as defined by the Internal Revenue Code of 1986: (i) Qualified electing fund income; (ii) Subpart F income, including income specified in Section 951A of the Internal Revenue Code of 1986; and (iii) Income attributable to an increase in United States property by a controlled foreign corporation. The amount subtracted under this subparagraph shall be reduced by any expenses directly attributable to the dividend income; and (B) Corporations from affiliated corporations within the United States, when the corporation receiving the dividends is engaged in business in this state and is subject to the payment of taxes under the income tax laws of this state, to the extent that the dividends have been included in net income under this Code section. Dividends from affiliates shall be reduced by any expenses directly attributable to the dividend income. (9) Where a corporation's salary and wage deductions are reduced in computing federal taxable income because the corporation has taken a federal jobs tax credit which required, as a condition to using the federal jobs tax credit, the elimination of salary and wage deductions, the eliminated salary and wage deductions shall be subtracted from taxable income. (10) Georgia taxable income shall be adjusted as provided in Code Section 48-7-28.3 . (10.1) Net operating losses for corporations shall be treated as follows: (A) For any taxable year in which the taxpayer takes a federal net operating loss deduction on its federal income tax return, the amount of such deduction shall be added back to federal taxable income, and Georgia taxable net income for such taxable year shall be computed from the taxpayer's federal taxable income as so adjusted. There shall be allowed as a separate deduction from Georgia taxable net income so computed an amount equal to the aggregate of the Georgia net operating loss carryovers to such year, plus the Georgia net operating loss carrybacks to such year if such carrybacks are allowed by the Internal Revenue Code of 1986. Any limitations included in the Internal Revenue Code of 1986 on the amount of net operating loss that can be used in a taxable year shall be applied for purposes of this Code section; provided, however, that such limitations, including, but not limited to, the 80 percent limitation, shall be applied to Georgia taxable net income; (B) The Georgia net operating loss for such taxable year shall be computed by making the adjustments to federal taxable income required by this article and in the case of corporations doing business both within and outside Georgia, by apportioning and allocating to Georgia, as provided in Code Section 48-7-31 , only the amount of the loss attributable to operations within Georgia. The term “ Georgia net operating loss ” shall mean the loss computed as provided in this paragraph. In the event the net Georgia adjustments completely offset a federal net operating loss, there shall be no Georgia net operating loss for the taxable year, and any excess of net Georgia adjustments over the federal net operating loss shall constitute Georgia taxable net income after any such excess has been allocated and apportioned to Georgia as provided in Code Section 48-7-31 . The procedural sequence of taxable years to which a Georgia net operating loss may be carried back or carried over, and the number of years for which a net operating loss may be carried back or carried over, shall be the same as provided in the Internal Revenue Code. The terms “ Georgia net operating loss carryback ” and “ Georgia net operating loss carryover ” shall mean the Georgia net operating loss for the applicable year carried back or carried over in the manner and for the number of years as provided in this paragraph; (C) In the event the taxpayer elects to forgo the carryback period for the federal net operating loss as allowed under the Internal Revenue Code, the taxpayer shall also forgo the carryback period for Georgia purposes. If the taxpayer does not elect to forgo the carryback period for the federal net operating loss, the election to forgo the net operating loss period shall not be allowed for Georgia purposes. If the taxpayer does not have a federal net operating loss, the taxpayer may make an irrevocable election to forgo the carryback period for the Georgia net operating loss, provided that an affirmative statement is attached to the Georgia return for the year of the loss. Such election must be made on or before the due date for filing the income tax return for the taxable year wherein the loss was incurred, including any extensions which have been granted; (D) The provisions of Sections 108 , 381 , 382 , and 384 of the Internal Revenue Code of 1986 , as amended, as they relate to net operating losses also apply for Georgia purposes. The commissioner shall by regulation provide the method of determining how such sections apply; (E) In the event a taxpayer is entitled to a refund of income taxes by reason of a net operating loss carryback, a claim for such refund must be filed within three years after the due date for filing the income tax return for the taxable year wherein the loss was incurred, including any extensions which have been granted. Such tax refund shall be deemed to have been erroneously assessed and collected, and shall be paid under the provisions of Code Section 48-2-35 ; provided, however, that no interest shall accrue or be paid for any period prior to the close of the taxable year in which such net operating loss arises and no interest shall be paid if the claim for refund is processed within 90 days from the last day of the month in which the claim for such refund is filed; and (F) The commissioner shall have the authority to promulgate regulations regarding net operating losses with respect to this paragraph and with respect to consolidated return net operating losses. (11) There shall be subtracted from taxable income a portion of qualified payments to classified subcontractors, as provided in Code Section 48-7-38 . (12) Georgia taxable income shall, if the taxpayer so elects, be adjusted with respect to federal depreciation deductions as provided in Code Section 48-7-39 . (13) If the taxpayer claims the tax credit provided for in subsection (d) of Code Section 48-7-40.6 with respect to qualified child care property, Georgia taxable income shall be increased by any depreciation deductions attributable to such property to the extent such deductions are used in determining federal taxable income. (14) There shall be subtracted from taxable income the deduction provided and allowed by Section 179 of the Internal Revenue Code of 1986 as enacted on or before January 1, 2005, to the extent the deduction has not been included in the corporation's taxable income, as defined under the Internal Revenue Code of 1986. (15) Georgia taxable income shall be increased by the amount of the payments, compensation, or other economic benefit disallowed by Code Section 48-7-21.1 . (16) Georgia taxable income shall be adjusted as provided in Code Section 48-7-28.4 . (17) Georgia taxable net income shall be adjusted as provided in Code Section 48-7-53 .

(b)(1)(A) When interest income is derived from obligations of any state or political subdivision except this state and political subdivisions of this state, the interest income shall be added to taxable income to the extent that the interest income is not included in gross income for federal income tax purposes. Interest or dividends on obligations of any authority, commission, instrumentality, territory, or possession of the United States which by the laws of the United States are exempt from federal income tax but not from state income tax shall also be added to taxable income. (B) There shall be subtracted from taxable income interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent such interest or dividends are includable in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States. There shall also be subtracted from taxable income any income derived from the authorized activities of a domestic international banking facility operating pursuant to the provisions of Article 5A of Chapter 1 of Title 7, the “Domestic International Banking Facility Act,” and any income arising from the conduct of a banking business with persons or entities located outside the United States, its territories, or possessions. Any amount subtracted pursuant to this subparagraph shall be reduced by any interest expenses directly or indirectly attributable to the production of the interest or dividend income.

(b)(1)(A) When interest income is derived from obligations of any state or political subdivision except this state and political subdivisions of this state, the interest income shall be added to taxable income to the extent that the interest income is not included in gross income for federal income tax purposes. Interest or dividends on obligations of any authority, commission, instrumentality, territory, or possession of the United States which by the laws of the United States are exempt from federal income tax but not from state income tax shall also be added to taxable income.

(b)(1)(A) When interest income is derived from obligations of any state or political subdivision except this state and political subdivisions of this state, the interest income shall be added to taxable income to the extent that the interest income is not included in gross income for federal income tax purposes. Interest or dividends on obligations of any authority, commission, instrumentality, territory, or possession of the United States which by the laws of the United States are exempt from federal income tax but not from state income tax shall also be added to taxable income.

(B) There shall be subtracted from taxable income interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent such interest or dividends are includable in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States. There shall also be subtracted from taxable income any income derived from the authorized activities of a domestic international banking facility operating pursuant to the provisions of Article 5A of Chapter 1 of Title 7, the “Domestic International Banking Facility Act,” and any income arising from the conduct of a banking business with persons or entities located outside the United States, its territories, or possessions. Any amount subtracted pursuant to this subparagraph shall be reduced by any interest expenses directly or indirectly attributable to the production of the interest or dividend income.

(B) There shall be subtracted from taxable income interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission, or instrumentality of the United States to the extent such interest or dividends are includable in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States. There shall also be subtracted from taxable income any income derived from the authorized activities of a domestic international banking facility operating pursuant to the provisions of Article 5A of Chapter 1 of Title 7, the “Domestic International Banking Facility Act,” and any income arising from the conduct of a banking business with persons or entities located outside the United States, its territories, or possessions. Any amount subtracted pursuant to this subparagraph shall be reduced by any interest expenses directly or indirectly attributable to the production of the interest or dividend income.

(2) There shall be added to taxable income any taxes on, or measured by, net income or net profits paid or accrued within the taxable year imposed by the authority of the United States or any foreign country, by any state except the State of Georgia, or by any territory, county, school district, municipality, or other tax subdivision of any state, territory, or foreign country to the extent such taxes are deducted in determining federal taxable income.

(2) There shall be added to taxable income any taxes on, or measured by, net income or net profits paid or accrued within the taxable year imposed by the authority of the United States or any foreign country, by any state except the State of Georgia, or by any territory, county, school district, municipality, or other tax subdivision of any state, territory, or foreign country to the extent such taxes are deducted in determining federal taxable income.

(3) No portion of any deductions or losses which occurred in a year in which the taxpayer was not subject to taxation in this state, including, but not limited to, net operating losses may be deducted in any tax year. When the federal adjusted gross income or net income of a corporation includes such deductions or losses, an adjustment deleting them shall be made under rules established by the commissioner. The provisions of this subsection shall not prohibit the carry-over of any deductions or losses, including, but not limited to, net operating losses of any taxpayer which were incurred in a year or years in which the taxpayer was subject to methods of taxation in this state other than the corporate income tax.

(3) No portion of any deductions or losses which occurred in a year in which the taxpayer was not subject to taxation in this state, including, but not limited to, net operating losses may be deducted in any tax year. When the federal adjusted gross income or net income of a corporation includes such deductions or losses, an adjustment deleting them shall be made under rules established by the commissioner. The provisions of this subsection shall not prohibit the carry-over of any deductions or losses, including, but not limited to, net operating losses of any taxpayer which were incurred in a year or years in which the taxpayer was subject to methods of taxation in this state other than the corporate income tax.

(4) Income, losses, and deductions previously used in computing Georgia taxable income shall not again be used in computing Georgia taxable income. The commissioner shall provide for needed adjustments by regulation.

(4) Income, losses, and deductions previously used in computing Georgia taxable income shall not again be used in computing Georgia taxable income. The commissioner shall provide for needed adjustments by regulation.

(5) All elections under Section 338 of the Internal Revenue Code of 1986 shall also apply under this article.

(5) All elections under Section 338 of the Internal Revenue Code of 1986 shall also apply under this article.

(6) This article shall not be construed to repeal any tax exemptions contained in other laws of this state not referred to in this article. Those exemptions and the exemptions provided for by federal law and treaty shall be deducted on forms provided by the commissioner.

(6) This article shall not be construed to repeal any tax exemptions contained in other laws of this state not referred to in this article. Those exemptions and the exemptions provided for by federal law and treaty shall be deducted on forms provided by the commissioner.

(7) All elections made by corporate taxpayers under the Internal Revenue Code of 1954 or the Internal Revenue Code of 1986 shall also apply under this article except elections involving consolidated corporate returns and Subchapter “S” elections which shall be treated as follows: (A)(i) Affiliated corporations which file a consolidated federal income tax return must file separate income tax returns with this state unless they elect to file a consolidated return as provided in paragraph (7.1) of this subsection. (ii) No depository financial institution shall be deprived of the benefit of any exemption, deduction, or credit authorized by this title as a consequence of its election to file otherwise lawful consolidated returns with its parent organization or any corporate subsidiaries with respect to any state or local tax levied against such depository financial institution as a result of this title. As used in this division, the term: (I) “Bank” means any financial institution chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a corporate structure authorizing the issuance of capital stock. (II) “Depository financial institution” means a “bank” or a “savings and loan association.” (III) “Savings and loan association” means any financial institution, other than a credit union, chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a mutual corporate form; (B) Subchapter “S” elections apply only if all stockholders are subject to tax in this state on their portion of the corporate income. If all nonresident stockholders pay the Georgia income tax on their portion of the corporate income, the election shall be allowed; and (C)(i) A Subchapter “S” corporation may annually make an irrevocable election, on its timely filed return under Code Section 48-7-51 , to pay the tax levied by this chapter at the entity level for the taxable period covered by such return. Such election must be made on or before the due date for filing the applicable income tax return, including any extensions which have been granted. (ii) Notwithstanding the provisions of subparagraph (B) of this paragraph, an electing Subchapter “S” corporation, with respect to a taxable period, shall pay an income tax equivalent to 5.75 percent of its net income as computed pursuant to this Code section, and allocated and apportioned pursuant to Code Section 48-7-31 , for such taxable period, and such shareholders shall not recognize their respective share of the portion of income on which tax was actually paid pursuant to this subparagraph. (iii) No electing Subchapter “S” corporation nor any of its shareholders shall be entitled to any credit under Code Section 48-7-28 with respect to such tax so paid or any deduction for such income under subsection (d) of Code Section 48-7-27 ; provided, however, that such electing Subchapter “S” corporation shall otherwise be eligible for credits provided by this chapter and shall be considered an “other entity” for purposes of Code Sections 48-7-29.16 , 48-7-29.20 , and 48-7-29.21 . (iv) The election under this subparagraph shall have no impact on the determination of the basis of the shareholders of an electing Subchapter “S” corporation in such shareholders' stock and indebtedness of such electing Subchapter “S” corporation, except that such shareholders' pro rata share of the tax paid or accrued by such electing Subchapter “S” corporation pursuant to such election shall be taken into account in determining such basis. (v) In computing the net income that is subject to taxation, the electing Subchapter “S” corporation shall not be allowed any deduction for taxes that are based on or measured by gross or net income or any other variant thereof. (vi) This subsection shall only apply to a Subchapter “S” corporation that is 100 percent directly owned and controlled by persons eligible to be shareholders of an “S” corporation under Section 1361 of the Internal Revenue Code of 1986 , as amended. (vii) As used in this subparagraph, the term: (I) “ Electing Subchapter ‘S' corporation ” means, with respect to a taxable period, a Subchapter “S” corporation that has made the election under this subparagraph with respect to such taxable period. (II) “ Subchapter ‘S' corporation ” means an entity subject to taxation under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986 1 and the regulations thereunder.

(7) All elections made by corporate taxpayers under the Internal Revenue Code of 1954 or the Internal Revenue Code of 1986 shall also apply under this article except elections involving consolidated corporate returns and Subchapter “S” elections which shall be treated as follows:

(A)(i) Affiliated corporations which file a consolidated federal income tax return must file separate income tax returns with this state unless they elect to file a consolidated return as provided in paragraph (7.1) of this subsection. (ii) No depository financial institution shall be deprived of the benefit of any exemption, deduction, or credit authorized by this title as a consequence of its election to file otherwise lawful consolidated returns with its parent organization or any corporate subsidiaries with respect to any state or local tax levied against such depository financial institution as a result of this title. As used in this division, the term: (I) “Bank” means any financial institution chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a corporate structure authorizing the issuance of capital stock. (II) “Depository financial institution” means a “bank” or a “savings and loan association.” (III) “Savings and loan association” means any financial institution, other than a credit union, chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a mutual corporate form;

(A)(i) Affiliated corporations which file a consolidated federal income tax return must file separate income tax returns with this state unless they elect to file a consolidated return as provided in paragraph (7.1) of this subsection.

(A)(i) Affiliated corporations which file a consolidated federal income tax return must file separate income tax returns with this state unless they elect to file a consolidated return as provided in paragraph (7.1) of this subsection.

(ii) No depository financial institution shall be deprived of the benefit of any exemption, deduction, or credit authorized by this title as a consequence of its election to file otherwise lawful consolidated returns with its parent organization or any corporate subsidiaries with respect to any state or local tax levied against such depository financial institution as a result of this title. As used in this division, the term: (I) “Bank” means any financial institution chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a corporate structure authorizing the issuance of capital stock. (II) “Depository financial institution” means a “bank” or a “savings and loan association.” (III) “Savings and loan association” means any financial institution, other than a credit union, chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a mutual corporate form;

(ii) No depository financial institution shall be deprived of the benefit of any exemption, deduction, or credit authorized by this title as a consequence of its election to file otherwise lawful consolidated returns with its parent organization or any corporate subsidiaries with respect to any state or local tax levied against such depository financial institution as a result of this title. As used in this division, the term:

(I) “Bank” means any financial institution chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a corporate structure authorizing the issuance of capital stock.

(I) “Bank” means any financial institution chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a corporate structure authorizing the issuance of capital stock.

(II) “Depository financial institution” means a “bank” or a “savings and loan association.”

(II) “Depository financial institution” means a “bank” or a “savings and loan association.”

(III) “Savings and loan association” means any financial institution, other than a credit union, chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a mutual corporate form;

(III) “Savings and loan association” means any financial institution, other than a credit union, chartered under the laws of this state or under the laws of the United States and domiciled in this state which is authorized to receive deposits in this state and which has a mutual corporate form;

(B) Subchapter “S” elections apply only if all stockholders are subject to tax in this state on their portion of the corporate income. If all nonresident stockholders pay the Georgia income tax on their portion of the corporate income, the election shall be allowed; and

(B) Subchapter “S” elections apply only if all stockholders are subject to tax in this state on their portion of the corporate income. If all nonresident stockholders pay the Georgia income tax on their portion of the corporate income, the election shall be allowed; and

(C)(i) A Subchapter “S” corporation may annually make an irrevocable election, on its timely filed return under Code Section 48-7-51 , to pay the tax levied by this chapter at the entity level for the taxable period covered by such return. Such election must be made on or before the due date for filing the applicable income tax return, including any extensions which have been granted. (ii) Notwithstanding the provisions of subparagraph (B) of this paragraph, an electing Subchapter “S” corporation, with respect to a taxable period, shall pay an income tax equivalent to 5.75 percent of its net income as computed pursuant to this Code section, and allocated and apportioned pursuant to Code Section 48-7-31 , for such taxable period, and such shareholders shall not recognize their respective share of the portion of income on which tax was actually paid pursuant to this subparagraph. (iii) No electing Subchapter “S” corporation nor any of its shareholders shall be entitled to any credit under Code Section 48-7-28 with respect to such tax so paid or any deduction for such income under subsection (d) of Code Section 48-7-27 ; provided, however, that such electing Subchapter “S” corporation shall otherwise be eligible for credits provided by this chapter and shall be considered an “other entity” for purposes of Code Sections 48-7-29.16 , 48-7-29.20 , and 48-7-29.21 . (iv) The election under this subparagraph shall have no impact on the determination of the basis of the shareholders of an electing Subchapter “S” corporation in such shareholders' stock and indebtedness of such electing Subchapter “S” corporation, except that such shareholders' pro rata share of the tax paid or accrued by such electing Subchapter “S” corporation pursuant to such election shall be taken into account in determining such basis. (v) In computing the net income that is subject to taxation, the electing Subchapter “S” corporation shall not be allowed any deduction for taxes that are based on or measured by gross or net income or any other variant thereof. (vi) This subsection shall only apply to a Subchapter “S” corporation that is 100 percent directly owned and controlled by persons eligible to be shareholders of an “S” corporation under Section 1361 of the Internal Revenue Code of 1986 , as amended. (vii) As used in this subparagraph, the term: (I) “ Electing Subchapter ‘S' corporation ” means, with respect to a taxable period, a Subchapter “S” corporation that has made the election under this subparagraph with respect to such taxable period. (II) “ Subchapter ‘S' corporation ” means an entity subject to taxation under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986 1 and the regulations thereunder.

(C)(i) A Subchapter “S” corporation may annually make an irrevocable election, on its timely filed return under Code Section 48-7-51 , to pay the tax levied by this chapter at the entity level for the taxable period covered by such return. Such election must be made on or before the due date for filing the applicable income tax return, including any extensions which have been granted.

(C)(i) A Subchapter “S” corporation may annually make an irrevocable election, on its timely filed return under Code Section 48-7-51 , to pay the tax levied by this chapter at the entity level for the taxable period covered by such return. Such election must be made on or before the due date for filing the applicable income tax return, including any extensions which have been granted.

(ii) Notwithstanding the provisions of subparagraph (B) of this paragraph, an electing Subchapter “S” corporation, with respect to a taxable period, shall pay an income tax equivalent to 5.75 percent of its net income as computed pursuant to this Code section, and allocated and apportioned pursuant to Code Section 48-7-31 , for such taxable period, and such shareholders shall not recognize their respective share of the portion of income on which tax was actually paid pursuant to this subparagraph.

(ii) Notwithstanding the provisions of subparagraph (B) of this paragraph, an electing Subchapter “S” corporation, with respect to a taxable period, shall pay an income tax equivalent to 5.75 percent of its net income as computed pursuant to this Code section, and allocated and apportioned pursuant to Code Section 48-7-31 , for such taxable period, and such shareholders shall not recognize their respective share of the portion of income on which tax was actually paid pursuant to this subparagraph.

(iii) No electing Subchapter “S” corporation nor any of its shareholders shall be entitled to any credit under Code Section 48-7-28 with respect to such tax so paid or any deduction for such income under subsection (d) of Code Section 48-7-27 ; provided, however, that such electing Subchapter “S” corporation shall otherwise be eligible for credits provided by this chapter and shall be considered an “other entity” for purposes of Code Sections 48-7-29.16 , 48-7-29.20 , and 48-7-29.21 .

(iii) No electing Subchapter “S” corporation nor any of its shareholders shall be entitled to any credit under Code Section 48-7-28 with respect to such tax so paid or any deduction for such income under subsection (d) of Code Section 48-7-27 ; provided, however, that such electing Subchapter “S” corporation shall otherwise be eligible for credits provided by this chapter and shall be considered an “other entity” for purposes of Code Sections 48-7-29.16 , 48-7-29.20 , and 48-7-29.21 .

(iv) The election under this subparagraph shall have no impact on the determination of the basis of the shareholders of an electing Subchapter “S” corporation in such shareholders' stock and indebtedness of such electing Subchapter “S” corporation, except that such shareholders' pro rata share of the tax paid or accrued by such electing Subchapter “S” corporation pursuant to such election shall be taken into account in determining such basis.

(iv) The election under this subparagraph shall have no impact on the determination of the basis of the shareholders of an electing Subchapter “S” corporation in such shareholders' stock and indebtedness of such electing Subchapter “S” corporation, except that such shareholders' pro rata share of the tax paid or accrued by such electing Subchapter “S” corporation pursuant to such election shall be taken into account in determining such basis.

(v) In computing the net income that is subject to taxation, the electing Subchapter “S” corporation shall not be allowed any deduction for taxes that are based on or measured by gross or net income or any other variant thereof.

(v) In computing the net income that is subject to taxation, the electing Subchapter “S” corporation shall not be allowed any deduction for taxes that are based on or measured by gross or net income or any other variant thereof.

(vi) This subsection shall only apply to a Subchapter “S” corporation that is 100 percent directly owned and controlled by persons eligible to be shareholders of an “S” corporation under Section 1361 of the Internal Revenue Code of 1986 , as amended.

(vi) This subsection shall only apply to a Subchapter “S” corporation that is 100 percent directly owned and controlled by persons eligible to be shareholders of an “S” corporation under Section 1361 of the Internal Revenue Code of 1986 , as amended.

(vii) As used in this subparagraph, the term: (I) “ Electing Subchapter ‘S' corporation ” means, with respect to a taxable period, a Subchapter “S” corporation that has made the election under this subparagraph with respect to such taxable period. (II) “ Subchapter ‘S' corporation ” means an entity subject to taxation under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986 1 and the regulations thereunder.

(vii) As used in this subparagraph, the term:

(I) “ Electing Subchapter ‘S' corporation ” means, with respect to a taxable period, a Subchapter “S” corporation that has made the election under this subparagraph with respect to such taxable period.

(I) “ Electing Subchapter ‘S' corporation ” means, with respect to a taxable period, a Subchapter “S” corporation that has made the election under this subparagraph with respect to such taxable period.

(II) “ Subchapter ‘S' corporation ” means an entity subject to taxation under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986 1 and the regulations thereunder.

(II) “ Subchapter ‘S' corporation ” means an entity subject to taxation under Subchapter S of Chapter 1 of Subtitle A of the Internal Revenue Code of 1986 1 and the regulations thereunder.

(7.1)(A) As used in this paragraph, the term: (i) “ Georgia affiliated group ” means a group of corporations of which each member: (I) Is a member of an affiliated group as defined in 26 U.S.C. Section 1504 , provided that such affiliated group files a federal consolidated corporate income tax return; (II) Is subject to taxation under this chapter; (III) Is subject to taxation in Georgia, even after the application of Public Law 86-272 ( 15 U.S.C. Sections 381 - 384 ); (IV) Has the same taxable year; (V) Was a member of the affiliated group for the entire taxable year or was a member of the affiliated group for a portion of the taxable year if the member was subject to taxation under subsection (a) of this Code section during the entire portion of the taxable year during which it was not a member of the federal consolidated group; (VI) Apportions Georgia taxable income or loss separately for each corporation, unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; (VII) Allocates taxable income or loss separately for each corporation in accordance with Code Section 48-7-31 ; (VIII) Computes apportionable income or loss utilizing separate apportionment factors for each corporation in accordance with Code Section 48-7-31 , unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; and (IX) Combines and reports taxable income or loss on a single return for the Georgia affiliated group which includes all members of the affiliated group included on the federal consolidated corporate income tax return that are eligible under this Code section to be included in the Georgia affiliated group. (ii) “ Georgia consolidated return ” means a Georgia corporate income tax return filed on behalf of the members of a Georgia affiliated group in accordance with this Code section pursuant to the election made under this subsection. (B) A Georgia affiliated group may elect to file a Georgia consolidated return on an originally filed return, including extensions, if applicable. Under no circumstances may the department compel a taxpayer to file a Georgia consolidated return if the taxpayer has not so elected. (C) For purposes of allocation and apportionment, each member of a Georgia affiliated group shall be considered a separate taxpayer, and any taxable loss of a member of a Georgia affiliated group shall be deductible against the taxable income of any other member of the Georgia affiliated group only if and to the extent such loss is apportioned and allocated to Georgia. (D) The tax liability of the Georgia affiliated group shall be determined by applying the rate specified in subsection (a) of this Code section to the group's taxable income. The separate taxable income or loss of each corporation in the Georgia affiliated group shall be included in the consolidated taxable income or loss to the extent that its taxable income or loss is separately apportioned or allocated to the State of Georgia, as computed and determined in accordance with this chapter. (E) Each corporation in a Georgia affiliated group that files a Georgia consolidated return shall be jointly and severally liable for the group's Georgia income tax liability with respect to the taxable year, except that any corporation which was not a member of the Georgia affiliated group for the entire taxable year shall be jointly and severally liable only for the portion of the tax liability attributable to that part of the year during which the corporation was a member, prorated on a daily basis. (F) The election provided for in this subsection is irrevocable and is binding on both the department and the Georgia affiliated group for a period of five years without modification, notwithstanding the powers granted to the department under this title. At the end of the five-year period of filing a Georgia consolidated return, the taxpayer's election shall be automatically terminated. Upon the automatic termination of such election, the taxpayer may reelect to file a Georgia consolidated return. (G) Notwithstanding subparagraph (F) of this paragraph, due to the material change in the law and the procedure for qualification as a member of a Georgia affiliated group, a Georgia affiliated group filing a Georgia consolidated return under the provisions of this paragraph prior to May 5, 2022, shall have the option either to terminate its election with respect to tax years after the period covered by the last Georgia consolidated return due under this Code section or to continue filing a Georgia consolidated return under the previous criteria. (H) Nothing in this subsection shall be construed as allowing or requiring the filing of combined income tax returns under the unitary business concept. (I) The department shall promulgate regulations interpreting the provisions of this paragraph.

(7.1)(A) As used in this paragraph, the term: (i) “ Georgia affiliated group ” means a group of corporations of which each member: (I) Is a member of an affiliated group as defined in 26 U.S.C. Section 1504 , provided that such affiliated group files a federal consolidated corporate income tax return; (II) Is subject to taxation under this chapter; (III) Is subject to taxation in Georgia, even after the application of Public Law 86-272 ( 15 U.S.C. Sections 381 - 384 ); (IV) Has the same taxable year; (V) Was a member of the affiliated group for the entire taxable year or was a member of the affiliated group for a portion of the taxable year if the member was subject to taxation under subsection (a) of this Code section during the entire portion of the taxable year during which it was not a member of the federal consolidated group; (VI) Apportions Georgia taxable income or loss separately for each corporation, unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; (VII) Allocates taxable income or loss separately for each corporation in accordance with Code Section 48-7-31 ; (VIII) Computes apportionable income or loss utilizing separate apportionment factors for each corporation in accordance with Code Section 48-7-31 , unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; and (IX) Combines and reports taxable income or loss on a single return for the Georgia affiliated group which includes all members of the affiliated group included on the federal consolidated corporate income tax return that are eligible under this Code section to be included in the Georgia affiliated group. (ii) “ Georgia consolidated return ” means a Georgia corporate income tax return filed on behalf of the members of a Georgia affiliated group in accordance with this Code section pursuant to the election made under this subsection.

(7.1)(A) As used in this paragraph, the term:

(i) “ Georgia affiliated group ” means a group of corporations of which each member: (I) Is a member of an affiliated group as defined in 26 U.S.C. Section 1504 , provided that such affiliated group files a federal consolidated corporate income tax return; (II) Is subject to taxation under this chapter; (III) Is subject to taxation in Georgia, even after the application of Public Law 86-272 ( 15 U.S.C. Sections 381 - 384 ); (IV) Has the same taxable year; (V) Was a member of the affiliated group for the entire taxable year or was a member of the affiliated group for a portion of the taxable year if the member was subject to taxation under subsection (a) of this Code section during the entire portion of the taxable year during which it was not a member of the federal consolidated group; (VI) Apportions Georgia taxable income or loss separately for each corporation, unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; (VII) Allocates taxable income or loss separately for each corporation in accordance with Code Section 48-7-31 ; (VIII) Computes apportionable income or loss utilizing separate apportionment factors for each corporation in accordance with Code Section 48-7-31 , unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; and (IX) Combines and reports taxable income or loss on a single return for the Georgia affiliated group which includes all members of the affiliated group included on the federal consolidated corporate income tax return that are eligible under this Code section to be included in the Georgia affiliated group.

(i) “ Georgia affiliated group ” means a group of corporations of which each member:

(I) Is a member of an affiliated group as defined in 26 U.S.C. Section 1504 , provided that such affiliated group files a federal consolidated corporate income tax return;

(I) Is a member of an affiliated group as defined in 26 U.S.C. Section 1504 , provided that such affiliated group files a federal consolidated corporate income tax return;

(II) Is subject to taxation under this chapter;

(II) Is subject to taxation under this chapter;

(III) Is subject to taxation in Georgia, even after the application of Public Law 86-272 ( 15 U.S.C. Sections 381 - 384 );

(III) Is subject to taxation in Georgia, even after the application of Public Law 86-272 ( 15 U.S.C. Sections 381 - 384 );

(IV) Has the same taxable year;

(IV) Has the same taxable year;

(V) Was a member of the affiliated group for the entire taxable year or was a member of the affiliated group for a portion of the taxable year if the member was subject to taxation under subsection (a) of this Code section during the entire portion of the taxable year during which it was not a member of the federal consolidated group;

(V) Was a member of the affiliated group for the entire taxable year or was a member of the affiliated group for a portion of the taxable year if the member was subject to taxation under subsection (a) of this Code section during the entire portion of the taxable year during which it was not a member of the federal consolidated group;

(VI) Apportions Georgia taxable income or loss separately for each corporation, unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ;

(VI) Apportions Georgia taxable income or loss separately for each corporation, unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ;

(VII) Allocates taxable income or loss separately for each corporation in accordance with Code Section 48-7-31 ;

(VII) Allocates taxable income or loss separately for each corporation in accordance with Code Section 48-7-31 ;

(VIII) Computes apportionable income or loss utilizing separate apportionment factors for each corporation in accordance with Code Section 48-7-31 , unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; and

(VIII) Computes apportionable income or loss utilizing separate apportionment factors for each corporation in accordance with Code Section 48-7-31 , unless the member is subject to paragraph (1) of subsection (b) of Code Section 48-7-31 ; and

(IX) Combines and reports taxable income or loss on a single return for the Georgia affiliated group which includes all members of the affiliated group included on the federal consolidated corporate income tax return that are eligible under this Code section to be included in the Georgia affiliated group.

(IX) Combines and reports taxable income or loss on a single return for the Georgia affiliated group which includes all members of the affiliated group included on the federal consolidated corporate income tax return that are eligible under this Code section to be included in the Georgia affiliated group.

(ii) “ Georgia consolidated return ” means a Georgia corporate income tax return filed on behalf of the members of a Georgia affiliated group in accordance with this Code section pursuant to the election made under this subsection.

(ii) “ Georgia consolidated return ” means a Georgia corporate income tax return filed on behalf of the members of a Georgia affiliated group in accordance with this Code section pursuant to the election made under this subsection.

(B) A Georgia affiliated group may elect to file a Georgia consolidated return on an originally filed return, including extensions, if applicable. Under no circumstances may the department compel a taxpayer to file a Georgia consolidated return if the taxpayer has not so elected.

(B) A Georgia affiliated group may elect to file a Georgia consolidated return on an originally filed return, including extensions, if applicable. Under no circumstances may the department compel a taxpayer to file a Georgia consolidated return if the taxpayer has not so elected.

(C) For purposes of allocation and apportionment, each member of a Georgia affiliated group shall be considered a separate taxpayer, and any taxable loss of a member of a Georgia affiliated group shall be deductible against the taxable income of any other member of the Georgia affiliated group only if and to the extent such loss is apportioned and allocated to Georgia.

(C) For purposes of allocation and apportionment, each member of a Georgia affiliated group shall be considered a separate taxpayer, and any taxable loss of a member of a Georgia affiliated group shall be deductible against the taxable income of any other member of the Georgia affiliated group only if and to the extent such loss is apportioned and allocated to Georgia.

(D) The tax liability of the Georgia affiliated group shall be determined by applying the rate specified in subsection (a) of this Code section to the group's taxable income. The separate taxable income or loss of each corporation in the Georgia affiliated group shall be included in the consolidated taxable income or loss to the extent that its taxable income or loss is separately apportioned or allocated to the State of Georgia, as computed and determined in accordance with this chapter.

(D) The tax liability of the Georgia affiliated group shall be determined by applying the rate specified in subsection (a) of this Code section to the group's taxable income. The separate taxable income or loss of each corporation in the Georgia affiliated group shall be included in the consolidated taxable income or loss to the extent that its taxable income or loss is separately apportioned or allocated to the State of Georgia, as computed and determined in accordance with this chapter.

(E) Each corporation in a Georgia affiliated group that files a Georgia consolidated return shall be jointly and severally liable for the group's Georgia income tax liability with respect to the taxable year, except that any corporation which was not a member of the Georgia affiliated group for the entire taxable year shall be jointly and severally liable only for the portion of the tax liability attributable to that part of the year during which the corporation was a member, prorated on a daily basis.

(E) Each corporation in a Georgia affiliated group that files a Georgia consolidated return shall be jointly and severally liable for the group's Georgia income tax liability with respect to the taxable year, except that any corporation which was not a member of the Georgia affiliated group for the entire taxable year shall be jointly and severally liable only for the portion of the tax liability attributable to that part of the year during which the corporation was a member, prorated on a daily basis.

(F) The election provided for in this subsection is irrevocable and is binding on both the department and the Georgia affiliated group for a period of five years without modification, notwithstanding the powers granted to the department under this title. At the end of the five-year period of filing a Georgia consolidated return, the taxpayer's election shall be automatically terminated. Upon the automatic termination of such election, the taxpayer may reelect to file a Georgia consolidated return.

(F) The election provided for in this subsection is irrevocable and is binding on both the department and the Georgia affiliated group for a period of five years without modification, notwithstanding the powers granted to the department under this title. At the end of the five-year period of filing a Georgia consolidated return, the taxpayer's election shall be automatically terminated. Upon the automatic termination of such election, the taxpayer may reelect to file a Georgia consolidated return.

(G) Notwithstanding subparagraph (F) of this paragraph, due to the material change in the law and the procedure for qualification as a member of a Georgia affiliated group, a Georgia affiliated group filing a Georgia consolidated return under the provisions of this paragraph prior to May 5, 2022, shall have the option either to terminate its election with respect to tax years after the period covered by the last Georgia consolidated return due under this Code section or to continue filing a Georgia consolidated return under the previous criteria.

(G) Notwithstanding subparagraph (F) of this paragraph, due to the material change in the law and the procedure for qualification as a member of a Georgia affiliated group, a Georgia affiliated group filing a Georgia consolidated return under the provisions of this paragraph prior to May 5, 2022, shall have the option either to terminate its election with respect to tax years after the period covered by the last Georgia consolidated return due under this Code section or to continue filing a Georgia consolidated return under the previous criteria.

(H) Nothing in this subsection shall be construed as allowing or requiring the filing of combined income tax returns under the unitary business concept.

(H) Nothing in this subsection shall be construed as allowing or requiring the filing of combined income tax returns under the unitary business concept.

(I) The department shall promulgate regulations interpreting the provisions of this paragraph.

(I) The department shall promulgate regulations interpreting the provisions of this paragraph.

(8) There shall be subtracted from taxable income dividends received by: (A) A corporation from sources outside the United States as defined in the Internal Revenue Code of 1986. For purposes of this subparagraph, dividends received by a corporation from sources outside of the United States shall include amounts treated as a dividend and income deemed to have been received under provisions of the Internal Revenue Code of 1986 by such corporation if such amounts could have been subtracted from taxable income under this paragraph, had such amounts actually been received. The deduction provided by Section 250 shall apply to the extent the same income was included in Georgia taxable net income. The deduction, exclusion, or subtraction provided by Section 245A, Section 965, or any other section of the Internal Revenue Code of 1986 shall not apply to the extent income has been subtracted pursuant to this subparagraph. Amounts to be subtracted under this subparagraph shall include the following unless excluded by this paragraph, as defined by the Internal Revenue Code of 1986: (i) Qualified electing fund income; (ii) Subpart F income, including income specified in Section 951A of the Internal Revenue Code of 1986; and (iii) Income attributable to an increase in United States property by a controlled foreign corporation. The amount subtracted under this subparagraph shall be reduced by any expenses directly attributable to the dividend income; and (B) Corporations from affiliated corporations within the United States, when the corporation receiving the dividends is engaged in business in this state and is subject to the payment of taxes under the income tax laws of this state, to the extent that the dividends have been included in net income under this Code section. Dividends from affiliates shall be reduced by any expenses directly attributable to the dividend income.

(8) There shall be subtracted from taxable income dividends received by:

(A) A corporation from sources outside the United States as defined in the Internal Revenue Code of 1986. For purposes of this subparagraph, dividends received by a corporation from sources outside of the United States shall include amounts treated as a dividend and income deemed to have been received under provisions of the Internal Revenue Code of 1986 by such corporation if such amounts could have been subtracted from taxable income under this paragraph, had such amounts actually been received. The deduction provided by Section 250 shall apply to the extent the same income was included in Georgia taxable net income. The deduction, exclusion, or subtraction provided by Section 245A, Section 965, or any other section of the Internal Revenue Code of 1986 shall not apply to the extent income has been subtracted pursuant to this subparagraph. Amounts to be subtracted under this subparagraph shall include the following unless excluded by this paragraph, as defined by the Internal Revenue Code of 1986: (i) Qualified electing fund income; (ii) Subpart F income, including income specified in Section 951A of the Internal Revenue Code of 1986; and (iii) Income attributable to an increase in United States property by a controlled foreign corporation. The amount subtracted under this subparagraph shall be reduced by any expenses directly attributable to the dividend income; and

(A) A corporation from sources outside the United States as defined in the Internal Revenue Code of 1986. For purposes of this subparagraph, dividends received by a corporation from sources outside of the United States shall include amounts treated as a dividend and income deemed to have been received under provisions of the Internal Revenue Code of 1986 by such corporation if such amounts could have been subtracted from taxable income under this paragraph, had such amounts actually been received. The deduction provided by Section 250 shall apply to the extent the same income was included in Georgia taxable net income. The deduction, exclusion, or subtraction provided by Section 245A, Section 965, or any other section of the Internal Revenue Code of 1986 shall not apply to the extent income has been subtracted pursuant to this subparagraph. Amounts to be subtracted under this subparagraph shall include the following unless excluded by this paragraph, as defined by the Internal Revenue Code of 1986:

(i) Qualified electing fund income;

(i) Qualified electing fund income;

(ii) Subpart F income, including income specified in Section 951A of the Internal Revenue Code of 1986; and

(ii) Subpart F income, including income specified in Section 951A of the Internal Revenue Code of 1986; and

(iii) Income attributable to an increase in United States property by a controlled foreign corporation.

(iii) Income attributable to an increase in United States property by a controlled foreign corporation.

The amount subtracted under this subparagraph shall be reduced by any expenses directly attributable to the dividend income; and

(B) Corporations from affiliated corporations within the United States, when the corporation receiving the dividends is engaged in business in this state and is subject to the payment of taxes under the income tax laws of this state, to the extent that the dividends have been included in net income under this Code section. Dividends from affiliates shall be reduced by any expenses directly attributable to the dividend income.

(B) Corporations from affiliated corporations within the United States, when the corporation receiving the dividends is engaged in business in this state and is subject to the payment of taxes under the income tax laws of this state, to the extent that the dividends have been included in net income under this Code section. Dividends from affiliates shall be reduced by any expenses directly attributable to the dividend income.

(9) Where a corporation's salary and wage deductions are reduced in computing federal taxable income because the corporation has taken a federal jobs tax credit which required, as a condition to using the federal jobs tax credit, the elimination of salary and wage deductions, the eliminated salary and wage deductions shall be subtracted from taxable income.

(9) Where a corporation's salary and wage deductions are reduced in computing federal taxable income because the corporation has taken a federal jobs tax credit which required, as a condition to using the federal jobs tax credit, the elimination of salary and wage deductions, the eliminated salary and wage deductions shall be subtracted from taxable income.

(10) Georgia taxable income shall be adjusted as provided in Code Section 48-7-28.3 .

(10) Georgia taxable income shall be adjusted as provided in Code Section 48-7-28.3 .

(10.1) Net operating losses for corporations shall be treated as follows: (A) For any taxable year in which the taxpayer takes a federal net operating loss deduction on its federal income tax return, the amount of such deduction shall be added back to federal taxable income, and Georgia taxable net income for such taxable year shall be computed from the taxpayer's federal taxable income as so adjusted. There shall be allowed as a separate deduction from Georgia taxable net income so computed an amount equal to the aggregate of the Georgia net operating loss carryovers to such year, plus the Georgia net operating loss carrybacks to such year if such carrybacks are allowed by the Internal Revenue Code of 1986. Any limitations included in the Internal Revenue Code of 1986 on the amount of net operating loss that can be used in a taxable year shall be applied for purposes of this Code section; provided, however, that such limitations, including, but not limited to, the 80 percent limitation, shall be applied to Georgia taxable net income; (B) The Georgia net operating loss for such taxable year shall be computed by making the adjustments to federal taxable income required by this article and in the case of corporations doing business both within and outside Georgia, by apportioning and allocating to Georgia, as provided in Code Section 48-7-31 , only the amount of the loss attributable to operations within Georgia. The term “ Georgia net operating loss ” shall mean the loss computed as provided in this paragraph. In the event the net Georgia adjustments completely offset a federal net operating loss, there shall be no Georgia net operating loss for the taxable year, and any excess of net Georgia adjustments over the federal net operating loss shall constitute Georgia taxable net income after any such excess has been allocated and apportioned to Georgia as provided in Code Section 48-7-31 . The procedural sequence of taxable years to which a Georgia net operating loss may be carried back or carried over, and the number of years for which a net operating loss may be carried back or carried over, shall be the same as provided in the Internal Revenue Code. The terms “ Georgia net operating loss carryback ” and “ Georgia net operating loss carryover ” shall mean the Georgia net operating loss for the applicable year carried back or carried over in the manner and for the number of years as provided in this paragraph; (C) In the event the taxpayer elects to forgo the carryback period for the federal net operating loss as allowed under the Internal Revenue Code, the taxpayer shall also forgo the carryback period for Georgia purposes. If the taxpayer does not elect to forgo the carryback period for the federal net operating loss, the election to forgo the net operating loss period shall not be allowed for Georgia purposes. If the taxpayer does not have a federal net operating loss, the taxpayer may make an irrevocable election to forgo the carryback period for the Georgia net operating loss, provided that an affirmative statement is attached to the Georgia return for the year of the loss. Such election must be made on or before the due date for filing the income tax return for the taxable year wherein the loss was incurred, including any extensions which have been granted; (D) The provisions of Sections 108 , 381 , 382 , and 384 of the Internal Revenue Code of 1986 , as amended, as they relate to net operating losses also apply for Georgia purposes. The commissioner shall by regulation provide the method of determining how such sections apply; (E) In the event a taxpayer is entitled to a refund of income taxes by reason of a net operating loss carryback, a claim for such refund must be filed within three years after the due date for filing the income tax return for the taxable year wherein the loss was incurred, including any extensions which have been granted. Such tax refund shall be deemed to have been erroneously assessed and collected, and shall be paid under the provisions of Code Section 48-2-35 ; provided, however, that no interest shall accrue or be paid for any period prior to the close of the taxable year in which such net operating loss arises and no interest shall be paid if the claim for refund is processed within 90 days from the last day of the month in which the claim for such refund is filed; and (F) The commissioner shall have the authority to promulgate regulations regarding net operating losses with respect to this paragraph and with respect to consolidated return net operating losses.

(10.1) Net operating losses for corporations shall be treated as follows:

(A) For any taxable year in which the taxpayer takes a federal net operating loss deduction on its federal income tax return, the amount of such deduction shall be added back to federal taxable income, and Georgia taxable net income for such taxable year shall be computed from the taxpayer's federal taxable income as so adjusted. There shall be allowed as a separate deduction from Georgia taxable net income so computed an amount equal to the aggregate of the Georgia net operating loss carryovers to such year, plus the Georgia net operating loss carrybacks to such year if such carrybacks are allowed by the Internal Revenue Code of 1986. Any limitations included in the Internal Revenue Code of 1986 on the amount of net operating loss that can be used in a taxable year shall be applied for purposes of this Code section; provided, however, that such limitations, including, but not limited to, the 80 percent limitation, shall be applied to Georgia taxable net income;

(A) For any taxable year in which the taxpayer takes a federal net operating loss deduction on its federal income tax return, the amount of such deduction shall be added back to federal taxable income, and Georgia taxable net income for such taxable year shall be computed from the taxpayer's federal taxable income as so adjusted. There shall be allowed as a separate deduction from Georgia taxable net income so computed an amount equal to the aggregate of the Georgia net operating loss carryovers to such year, plus the Georgia net operating loss carrybacks to such year if such carrybacks are allowed by the Internal Revenue Code of 1986. Any limitations included in the Internal Revenue Code of 1986 on the amount of net operating loss that can be used in a taxable year shall be applied for purposes of this Code section; provided, however, that such limitations, including, but not limited to, the 80 percent limitation, shall be applied to Georgia taxable net income;

(B) The Georgia net operating loss for such taxable year shall be computed by making the adjustments to federal taxable income required by this article and in the case of corporations doing business both within and outside Georgia, by apportioning and allocating to Georgia, as provided in Code Section 48-7-31 , only the amount of the loss attributable to operations within Georgia. The term “ Georgia net operating loss ” shall mean the loss computed as provided in this paragraph. In the event the net Georgia adjustments completely offset a federal net operating loss, there shall be no Georgia net operating loss for the taxable year, and any excess of net Georgia adjustments over the federal net operating loss shall constitute Georgia taxable net income after any such excess has been allocated and apportioned to Georgia as provided in Code Section 48-7-31 . The procedural sequence of taxable years to which a Georgia net operating loss may be carried back or carried over, and the number of years for which a net operating loss may be carried back or carried over, shall be the same as provided in the Internal Revenue Code. The terms “ Georgia net operating loss carryback ” and “ Georgia net operating loss carryover ” shall mean the Georgia net operating loss for the applicable year carried back or carried over in the manner and for the number of years as provided in this paragraph;

(B) The Georgia net operating loss for such taxable year shall be computed by making the adjustments to federal taxable income required by this article and in the case of corporations doing business both within and outside Georgia, by apportioning and allocating to Georgia, as provided in Code Section 48-7-31 , only the amount of the loss attributable to operations within Georgia. The term “ Georgia net operating loss ” shall mean the loss computed as provided in this paragraph. In the event the net Georgia adjustments completely offset a federal net operating loss, there shall be no Georgia net operating loss for the taxable year, and any excess of net Georgia adjustments over the federal net operating loss shall constitute Georgia taxable net income after any such excess has been allocated and apportioned to Georgia as provided in Code Section 48-7-31 . The procedural sequence of taxable years to which a Georgia net operating loss may be carried back or carried over, and the number of years for which a net operating loss may be carried back or carried over, shall be the same as provided in the Internal Revenue Code. The terms “ Georgia net operating loss carryback ” and “ Georgia net operating loss carryover ” shall mean the Georgia net operating loss for the applicable year carried back or carried over in the manner and for the number of years as provided in this paragraph;

(C) In the event the taxpayer elects to forgo the carryback period for the federal net operating loss as allowed under the Internal Revenue Code, the taxpayer shall also forgo the carryback period for Georgia purposes. If the taxpayer does not elect to forgo the carryback period for the federal net operating loss, the election to forgo the net operating loss period shall not be allowed for Georgia purposes. If the taxpayer does not have a federal net operating loss, the taxpayer may make an irrevocable election to forgo the carryback period for the Georgia net operating loss, provided that an affirmative statement is attached to the Georgia return for the year of the loss. Such election must be made on or before the due date for filing the income tax return for the taxable year wherein the loss was incurred, including any extensions which have been granted;

(C) In the event the taxpayer elects to forgo the carryback period for the federal net operating loss as allowed under the Internal Revenue Code, the taxpayer shall also forgo the carryback period for Georgia purposes. If the taxpayer does not elect to forgo the carryback period for the federal net operating loss, the election to forgo the net operating loss period shall not be allowed for Georgia purposes. If the taxpayer does not have a federal net operating loss, the taxpayer may make an irrevocable election to forgo the carryback period for the Georgia net operating loss, provided that an affirmative statement is attached to the Georgia return for the year of the loss. Such election must be made on or before the due date for filing the income tax return for the taxable year wherein the loss was incurred, including any extensions which have been granted;

(D) The provisions of Sections 108 , 381 , 382 , and 384 of the Internal Revenue Code of 1986 , as amended, as they relate to net operating losses also apply for Georgia purposes. The commissioner shall by regulation provide the method of determining how such sections apply;

(D) The provisions of Sections 108 , 381 , 382 , and 384 of the Internal Revenue Code of 1986 , as amended, as they relate to net operating losses also apply for Georgia purposes. The commissioner shall by regulation provide the method of determining how such sections apply;

(E) In the event a taxpayer is entitled to a refund of income taxes by reason of a net operating loss carryback, a claim for such refund must be filed within three years after the due date for filing the income tax return for the taxable year wherein the loss was incurred, including any extensions which have been granted. Such tax refund shall be deemed to have been erroneously assessed and collected, and shall be paid under the provisions of Code Section 48-2-35 ; provided, however, that no interest shall accrue or be paid for any period prior to the close of the taxable year in which such net operating loss arises and no interest shall be paid if the claim for refund is processed within 90 days from the last day of the month in which the claim for such refund is filed; and

(E) In the event a taxpayer is entitled to a refund of income taxes by reason of a net operating loss carryback, a claim for such refund must be filed within three years after the due date for filing the income tax return for the taxable year wherein the loss was incurred, including any extensions which have been granted. Such tax refund shall be deemed to have been erroneously assessed and collected, and shall be paid under the provisions of Code Section 48-2-35 ; provided, however, that no interest shall accrue or be paid for any period prior to the close of the taxable year in which such net operating loss arises and no interest shall be paid if the claim for refund is processed within 90 days from the last day of the month in which the claim for such refund is filed; and

(F) The commissioner shall have the authority to promulgate regulations regarding net operating losses with respect to this paragraph and with respect to consolidated return net operating losses.

(F) The commissioner shall have the authority to promulgate regulations regarding net operating losses with respect to this paragraph and with respect to consolidated return net operating losses.

(11) There shall be subtracted from taxable income a portion of qualified payments to classified subcontractors, as provided in Code Section 48-7-38 .

(11) There shall be subtracted from taxable income a portion of qualified payments to classified subcontractors, as provided in Code Section 48-7-38 .

(12) Georgia taxable income shall, if the taxpayer so elects, be adjusted with respect to federal depreciation deductions as provided in Code Section 48-7-39 .

(12) Georgia taxable income shall, if the taxpayer so elects, be adjusted with respect to federal depreciation deductions as provided in Code Section 48-7-39 .

(13) If the taxpayer claims the tax credit provided for in subsection (d) of Code Section 48-7-40.6 with respect to qualified child care property, Georgia taxable income shall be increased by any depreciation deductions attributable to such property to the extent such deductions are used in determining federal taxable income.

(13) If the taxpayer claims the tax credit provided for in subsection (d) of Code Section 48-7-40.6 with respect to qualified child care property, Georgia taxable income shall be increased by any depreciation deductions attributable to such property to the extent such deductions are used in determining federal taxable income.

(14) There shall be subtracted from taxable income the deduction provided and allowed by Section 179 of the Internal Revenue Code of 1986 as enacted on or before January 1, 2005, to the extent the deduction has not been included in the corporation's taxable income, as defined under the Internal Revenue Code of 1986.

(14) There shall be subtracted from taxable income the deduction provided and allowed by Section 179 of the Internal Revenue Code of 1986 as enacted on or before January 1, 2005, to the extent the deduction has not been included in the corporation's taxable income, as defined under the Internal Revenue Code of 1986.

(15) Georgia taxable income shall be increased by the amount of the payments, compensation, or other economic benefit disallowed by Code Section 48-7-21.1 .

(15) Georgia taxable income shall be increased by the amount of the payments, compensation, or other economic benefit disallowed by Code Section 48-7-21.1 .

(16) Georgia taxable income shall be adjusted as provided in Code Section 48-7-28.4 .

(16) Georgia taxable income shall be adjusted as provided in Code Section 48-7-28.4 .

(17) Georgia taxable net income shall be adjusted as provided in Code Section 48-7-53 .

(17) Georgia taxable net income shall be adjusted as provided in Code Section 48-7-53 .

1 26 U.S.C.A. § 1361 et seq.
O.C.G.A. § 48-9-10-1 — GA Code / Title 48 / Chapter 9 / Section 48-9-10-1
Georgia Code Title 48. Revenue and Taxation § 48-9-10.1
Status: in_force

(a) As used in this Code section, the term: (1) “ Credit card issuer ” means the party that extends credit, through the issuance of a credit card, to the qualified governmental tax-exempt entity that purchases “motor fuel” for “highway use” as those terms are defined under Code Section 48-9-2 for a qualified governmental tax-exempt entity's exclusive use. (2) “ Qualified governmental tax-exempt entity ” means a government entity that is exempt from sales and use tax under Chapter 8 of this title, or other provision of general law.

(a) As used in this Code section, the term:

(1) “ Credit card issuer ” means the party that extends credit, through the issuance of a credit card, to the qualified governmental tax-exempt entity that purchases “motor fuel” for “highway use” as those terms are defined under Code Section 48-9-2 for a qualified governmental tax-exempt entity's exclusive use.

(1) “ Credit card issuer ” means the party that extends credit, through the issuance of a credit card, to the qualified governmental tax-exempt entity that purchases “motor fuel” for “highway use” as those terms are defined under Code Section 48-9-2 for a qualified governmental tax-exempt entity's exclusive use.

(2) “ Qualified governmental tax-exempt entity ” means a government entity that is exempt from sales and use tax under Chapter 8 of this title, or other provision of general law.

(2) “ Qualified governmental tax-exempt entity ” means a government entity that is exempt from sales and use tax under Chapter 8 of this title, or other provision of general law.

(b) In the event that a sale of motor fuel for highway use is made to a qualified governmental tax-exempt entity by means of a credit card issued by a credit card issuer to the qualified governmental tax-exempt entity when such credit card issuer invoices and bills such qualified governmental tax-exempt entity net of the applicable taxes, such credit card issuer may obtain a refund for the sales and use taxes paid on such sales.

(b) In the event that a sale of motor fuel for highway use is made to a qualified governmental tax-exempt entity by means of a credit card issued by a credit card issuer to the qualified governmental tax-exempt entity when such credit card issuer invoices and bills such qualified governmental tax-exempt entity net of the applicable taxes, such credit card issuer may obtain a refund for the sales and use taxes paid on such sales.

(c) In order for a credit card issuer to be eligible to claim a refund of sales and use taxes provided under this Code section, the credit card issuer must be registered with the Internal Revenue Service under Section 4101 of the Internal Revenue Code as a credit card issuer; establish that it has not collected the tax from the qualified governmental tax-exempt entity that purchased the motor fuel; establish that it repaid the amount of the tax to the dealer in full with all applicable taxes included; and has obtained the written consent of the dealer for the allowance of the credit or refund or has otherwise made arrangements which directly or indirectly provide the dealer with reimbursement of the tax.

(c) In order for a credit card issuer to be eligible to claim a refund of sales and use taxes provided under this Code section, the credit card issuer must be registered with the Internal Revenue Service under Section 4101 of the Internal Revenue Code as a credit card issuer; establish that it has not collected the tax from the qualified governmental tax-exempt entity that purchased the motor fuel; establish that it repaid the amount of the tax to the dealer in full with all applicable taxes included; and has obtained the written consent of the dealer for the allowance of the credit or refund or has otherwise made arrangements which directly or indirectly provide the dealer with reimbursement of the tax.

(d) Refunds of sales and use tax pursuant to this Code section shall be made without interest.

(d) Refunds of sales and use tax pursuant to this Code section shall be made without interest.

(e) The commissioner is authorized to promulgate rules and regulations deemed necessary in order to administer and effectuate this Code section.

(e) The commissioner is authorized to promulgate rules and regulations deemed necessary in order to administer and effectuate this Code section.
O.C.G.A. § 48-7a-3 — GA Code / Title 48 / Chapter 7A / Section 48-7a-3
Georgia Code Title 48. Revenue and Taxation § 48-7A-3
Status: in_force

(a) Except as otherwise provided in subsection (e) of this Code section, each resident taxpayer who files an individual income tax return for a taxable year and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Georgia individual income tax purposes may claim a tax credit against the resident taxpayer's individual income tax liability for the taxable year for which the individual income tax return is being filed; provided that: (1) A husband and wife filing a joint return shall each be deemed a dependent for purposes of such joint return; and (2) A husband and wife filing separate returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

(a) Except as otherwise provided in subsection (e) of this Code section, each resident taxpayer who files an individual income tax return for a taxable year and who is not claimed or is not otherwise eligible to be claimed as a dependent by another taxpayer for federal or Georgia individual income tax purposes may claim a tax credit against the resident taxpayer's individual income tax liability for the taxable year for which the individual income tax return is being filed; provided that:

(1) A husband and wife filing a joint return shall each be deemed a dependent for purposes of such joint return; and

(1) A husband and wife filing a joint return shall each be deemed a dependent for purposes of such joint return; and

(2) A husband and wife filing separate returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

(2) A husband and wife filing separate returns for a taxable year for which a joint return could have been filed by them shall claim only the tax credit to which they would have been entitled had a joint return been filed.

(b) Each taxpayer may claim a tax credit in the amount indicated for each adjusted gross income bracket as shown in the schedule below multiplied by the number of dependents which the taxpayer is entitled to claim. Each taxpayer 65 years of age or over may claim double the tax credit. TAX CREDIT SCHEDULE Adjusted Gross Income Tax Credit Under $ 6,000.00․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․ ․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․$ 26.00 6,000.00 but not more than 7,999.00․․․․․․․․․․․․․․ ․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․20.00 8,000.00 but not more than 9,999.00․․․․․․․․․․․․․․ ․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․14.00 10,000.00 but not more than 14,999.00․․․․․․․․․․․․ ․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․8.00 15,000.00 but not more than 19,999.00․․․․․․․․․․․․ ․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․5.00

(b) Each taxpayer may claim a tax credit in the amount indicated for each adjusted gross income bracket as shown in the schedule below multiplied by the number of dependents which the taxpayer is entitled to claim. Each taxpayer 65 years of age or over may claim double the tax credit.

Adjusted Gross Income

Tax Credit

Under $ 6,000.00․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․

․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․$ 26.00

6,000.00 but not more than 7,999.00․․․․․․․․․․․․․․

․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․20.00

8,000.00 but not more than 9,999.00․․․․․․․․․․․․․․

․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․14.00

10,000.00 but not more than 14,999.00․․․․․․․․․․․․

․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․8.00

15,000.00 but not more than 19,999.00․․․․․․․․․․․․

․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․․5.00

(c) The tax credit claimed by a resident taxpayer pursuant to this Code section shall be deductible from the resident taxpayer's individual income tax liability, if any, for the tax year in which it is properly claimed; provided, however, that in no event shall the total amount of the tax credit under this Code section for a taxable year exceed the taxpayer's income tax liability. Any unused credit amount shall not be allowed to be carried forward to the taxpayer's succeeding years' tax liability. No such credit shall be allowed the taxpayer against prior years' tax liability.

(c) The tax credit claimed by a resident taxpayer pursuant to this Code section shall be deductible from the resident taxpayer's individual income tax liability, if any, for the tax year in which it is properly claimed; provided, however, that in no event shall the total amount of the tax credit under this Code section for a taxable year exceed the taxpayer's income tax liability. Any unused credit amount shall not be allowed to be carried forward to the taxpayer's succeeding years' tax liability. No such credit shall be allowed the taxpayer against prior years' tax liability.

(d) All claims for a tax credit under this Code section, including any amended claims, must be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with this subsection shall constitute a waiver of the right to claim the credit.

(d) All claims for a tax credit under this Code section, including any amended claims, must be filed on or before the end of the twelfth month following the close of the taxable year for which the credit may be claimed. Failure to comply with this subsection shall constitute a waiver of the right to claim the credit.

(e) Any individual who receives a food stamp allotment for all or any part of a taxable year shall not be entitled to claim a credit under this Code section for that taxable year.

(e) Any individual who receives a food stamp allotment for all or any part of a taxable year shall not be entitled to claim a credit under this Code section for that taxable year.

(e.1) Any individual incarcerated or confined in any city, county, municipal, state, or federal penal or correctional institution for all or any part of a taxable year shall not be entitled to claim a credit under this Code section for that taxable year.

(e.1) Any individual incarcerated or confined in any city, county, municipal, state, or federal penal or correctional institution for all or any part of a taxable year shall not be entitled to claim a credit under this Code section for that taxable year.

(f) The commissioner shall be authorized by rule and regulation to provide for the proper administration of this Code section.

(f) The commissioner shall be authorized by rule and regulation to provide for the proper administration of this Code section.
O.C.G.A. § 48-5-293 — GA Code / Title 48 / Chapter 5 / Section 48-5-293
Georgia Code Title 48. Revenue and Taxation § 48-5-293
Status: in_force

Each member of the county board of tax assessors shall take an oath before the judge or the clerk of the superior court of the county to perform faithfully and impartially the duties imposed upon him by law. In addition, he shall also take the oath required of all public officers as provided in Code Section 45-3-1 .
O.C.G.A. § 48-13-77 — GA Code / Title 48 / Chapter 13 / Section 48-13-77
Georgia Code Title 48. Revenue and Taxation § 48-13-77
Status: in_force

Each corporation other than Georgia Subchapter “S” corporations subject to the tax imposed by this article shall file a return and pay the tax due on the fifteenth day of the fourth calendar month following the beginning of its tax period. Each Georgia Subchapter “S” corporation subject to the tax imposed by this article shall file a return and pay the tax due on the fifteenth day of the third calendar month following the beginning of its tax period. The commissioner may authorize combining the return required by this Code section with the state income tax return required by law. The return shall be signed and sworn to by an officer of the corporation and shall be forwarded to the commissioner.