2023 CODE OF GEORGIA › Title 48 - REVENUE AND TAXATION (§§ 48-1-1 — 48-18-1) › Chapter 7 - INCOME TAXES (§§ 48-7-1 — 48-7-170) › Article 2 - IMPOSITION, RATE, AND COMPUTATION; EXEMPTIONS (§§ 48-7-20 — 48-7-42) › Section 48-7-40.15 - [Effective 1/1/2025] Alternative tax credits for base year port traffic increases

(a)
As used in this Code section, the term:
(1)
"Base year port traffic" means:
(A)
For taxable years beginning prior to January 1, 2010, the total amount of net tons, containers, or twenty-foot equivalent units (TEU's) of product actually transported by way of a waterborne ship or vehicle through a port facility during the period from January 1, 1997, through December 31, 1997; provided, however, that, in the event the total amount actually transported during such period was not at least 75 net tons, five containers, or ten twenty-foot equivalent units (TEU's), then "base year port traffic" means 75 net tons, five containers, or ten twenty-foot equivalent units (TEU's).
(B)
For all taxable years beginning on or after January 1, 2010, the total amount of net tons, containers, or twenty-foot equivalent units (TEU's) of product actually imported into this state or exported out of this state by way of a waterborne ship or vehicle through a port facility during the second preceding 12 month period; provided, however, that, in the event the total amount actually imported into this state or exported out of this state during such period was not at least 75 net tons, five containers, or ten twenty-foot equivalent units (TEU's), then "base year port traffic" means 75 net tons, five containers, or ten twenty-foot equivalent units (TEU's).
(2)
"Broadcasting" means the transmission or licensing of audio, video, text, or other programming content to the general public, subscribers, or to third parties via radio, television, cable, satellite, or the internet or IP and includes motion picture and sound recording, editing, production, postproduction, and distribution. Such term is limited to establishments classified under the 2007 North American Industry Classification System Codes 515, broadcasting; 519, internet publishing and broadcasting; 517, telecommunications; and 512, motion picture and sound recording industries.
(3)
"Business enterprise" means any business or the headquarters of any such business which is engaged in manufacturing, including, but not limited to, the manufacturing of alternative energy products for use in solar, wind, battery, bioenergy, biofuel, and electric vehicle enterprises, warehousing and distribution, processing, telecommunications, broadcasting, tourism, biomedical manufacturing, and research and development industries. Such term shall not include retail businesses. Businesses are eligible for the tax credit provided by subsection (b) of this Code section at an individual establishment of the business based on the classification of the individual establishment under the North American Industry Classification System. For purposes of this Code section, the term "establishment" means an economic unit at a single physical location where business is conducted or where services or industrial operations are performed. If more than one business activity is conducted at the establishment, then only those jobs engaged in the qualifying activity will be eligible for the tax credit provided by this Code section.
(4)
"Port facility" means any privately owned or publicly owned facility located within this state through which product is transported by way of a waterborne ship or vehicle to or from destinations outside this state.
(5)
"Port traffic" means:
(A)
For taxable years beginning prior to January 1, 2010, the total amount of net tons, containers, or twenty-foot equivalent units (TEU's) of product transported by way of a waterborne ship or vehicle through a port facility.
(B)
For all taxable years beginning on or after January 1, 2010, the total amount of net tons, containers, or twenty-foot equivalent units (TEU's) of product imported into this state or exported out of this state by way of a waterborne ship or vehicle through a port facility.
(6)
"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.
(7)
"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 in the expansion of an existing manufacturing or telecommunications facility located in this state, including, but not limited to, moneys 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 Code section.
(b)
(1)
In the case of any business enterprise which has increased its port traffic of products during the previous 12 month period by more than 10 percent above its base year port traffic and is qualified to claim a job tax credit under Code Section
48-7-40
or
48-7-40.1
for jobs added at any time on or after January 1, 1998, there shall be allowed an additional $1,250.00 job tax credit against the tax imposed under this article.
(2)
The tax credit described in this subsection shall be allowed subject to the conditions and limitations set forth in Code Section
48-7-40
or
48-7-40.1
and shall be in addition to the credit allowed under Code Section
48-7-40
or
48-7-40.1
; provided, however, that such credit shall not be allowed during a year if the port traffic does not remain above the minimum level established in this Code section.
(c)
In the case of any business enterprise which has increased its port traffic of products during the previous 12 month period by more than 10 percent above its base year port traffic and is qualified to claim a tax credit under Code Section
48-7-40.2
,
48-7-40.3
,
48-7-40.4
,
48-7-40.7
,
48-7-40.8
, or
48-7-40.9
upon qualified investment property added at any time on or after January 1, 1998, there shall be allowed a credit against the tax imposed under this article in an amount equal to the applicable percentage amount otherwise allowed under Code Section
48-7-40.2
or
48-7-40.7
to business enterprises for the cost of such property. The tax credit described in this subsection shall be allowed subject to the conditions and limitations set forth in Code Section
48-7-40.2
or
48-7-40.7
, as applicable, except that such property may be placed in service in any county without regard to its tier designation. Such credit shall also be in lieu of and not in addition to the credit authorized under Code Sections
48-7-40.2
,
48-7-40.3
,
48-7-40.4
,
48-7-40.7
,
48-7-40.8
, and
48-7-40.9
.
(d)
No business enterprise shall be authorized to claim the credits provided for in both subsections (b) and (c) of this Code section on a tax return for any taxable year unless such business enterprise has increased its port traffic of products during the previous 12 month period by more than 20 percent above its base year port traffic, has increased employment by 400 or more no sooner than January 1, 1998, and has purchased or acquired qualified investment property having an aggregate cost in excess of $20 million no sooner than January 1, 1998.
(e)
The credit granted under this Code section shall be subject to the following conditions and limitations:
(1)
For every year in which a taxpayer claims the credit, the taxpayer shall attach a schedule to the taxpayer's state income tax return which shall set forth the following information, as a minimum, in addition to the information required under Code Sections
48-7-40
,
48-7-40.1
, and
48-7-40.2
or
48-7-40.7
:
(A)
A description of how the base year port traffic and the increase in port traffic was determined;
(B)
The amount of the base year port traffic;
(C)
The amount of the increase in port traffic for the taxable year, including information which demonstrates an increase in port traffic in excess of the minimum amount required to claim the tax credit under this Code section;
(D)
Any tax credit utilized by the taxpayer in prior years;
(E)
The amount of tax credit carried over from prior years;
(F)
The amount of tax credit utilized by the taxpayer in the current taxable year; and
(G)
The amount of tax credit to be carried over to subsequent tax years.
(2)
(A)
Any tax credit claimed under subsection (b) of this Code section but not used in any taxable year may be carried forward for five years from the close of the taxable year in which the qualified jobs were established, provided that the increase in port traffic remains above the minimum levels established in Code Section
48-7-40
or
48-7-40.1
and this Code section, respectively.
(B)
Any tax credit claimed under subsection (c) of this Code section in lieu of Code Section
48-7-40.2
,
48-7-40.3
, or
48-7-40.4
but not used in any taxable year may be carried forward for five years from the close of the taxable year in which the qualified investment property was acquired, provided that the increase in port traffic remains above the minimum level established in this Code section and the qualified investment property remains in service.
(3)
(A)
Any tax credit claimed under subsection (c) of this Code section in lieu of Code Section
48-7-40.7
,
48-7-40.8
, or
48-7-40.9
shall be allowed for the ensuing five taxable years following the taxable year the qualified investment property was first placed in service, provided that the increase in port traffic remains above the minimum level established in this Code section and the qualified investment property remains in service.
(B)
The tax credit established by this Code section in lieu of Code Section
48-7-40.2
,
48-7-40.3
, or
48-7-40.4
and 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.
(C)
The tax credit established by this Code section in addition to that pursuant to Code Section
48-7-40
or
48-7-40.1
and 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.
(D)
The sale, merger, acquisition, or bankruptcy of any taxpayer shall not create new eligibility for any succeeding taxpayer, but any unused credit may be transferred and continued by any transferee of the taxpayer.
Amended by 2024 Ga. Laws 701,§ 5, eff. 7/1/2024.
Amended by 2024 Ga. Laws 598,§ 1-24, eff. 1/1/2025, app. only to unused tax credits generated during taxable years beginning on or after 1/1/2025.
Amended by 2012 Ga. Laws 767,§ 4, eff. 5/3/2012.
Amended by 2009 Ga. Laws 129,§ 5, eff. 5/4/2009.
Amended by 2009 Ga. Laws 8,§ 48, eff. 4/14/2009.
Amended by 2008 Ga. Laws 730,§ 4, eff. 5/14/2008.
Amended by 2005 Ga. Laws 31,§ 16, eff. 4/12/2005.
Amended by 2002 Ga. Laws 462, § 48, eff. 4/18/2002.
Amended by 2001 Ga. Laws 265, §1, eff. 4/27/2001.
See 2012 Ga. Laws 767, § 7.
This section is set out more than once due to postponed, multiple, or conflicting amendments.