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(a) As used in this Code section, the term:
(1) “Establishment” means an economic unit at a single physical location where business is conducted or where services or industrial operations are performed.
(2) “Hand sanitizer” means any hand antiseptic, hand rub, soap, or agent applied to the hands for the purpose of removing common pathogens, including, but not limited to, hand cleaners and sanitizers provided for under 7 C.F.R. Section 3201.18.
(3) “Personal protective equipment” or “PPE” means any protective clothing, helmets, gloves, face shields, goggles, facemasks, hand sanitizer, and respirators or other equipment designed to protect the wearer from injury or to prevent the spread of infection, disease, virus, or other illness. Such term shall include equipment identified under 29 C.F.R. Section 1910, Subpart I.
(4) “Personal protective equipment manufacturer” or “PPE manufacturer” means any business enterprise which is engaged in the manufacturing of PPE in this state. Such term shall include any business enterprise which, in response to COVID-19, began manufacturing PPE in this state. Such term shall not include retail businesses that sell PPE.
(b) (1) When any PPE manufacturer is qualified to claim a job tax credit under Code Section 48-7-40 or 48-7-40.1, there shall be allowed an additional $1,250.00 job tax credit against the tax imposed under this article for those qualifying jobs to the extent they are engaged in the qualifying activity of manufacturing PPE in this state during the taxable year. Such PPE manufacturer shall be eligible for such additional job tax credit at an individual establishment of the business. If more than one business activity is conducted at the establishment, then only those jobs engaged in the qualifying activity of manufacturing PPE in this state shall be eligible for such additional job tax credit.
(2) The additional tax credit provided for in paragraph (1) of this subsection shall be claimed separately from the job tax credit under Code Section 48-7-40 or 48-7-40.1 but shall, except as provided in this Code section, 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 the amount allowed to offset taxes imposed by this article shall be 100 percent; and provided, further, that when such tax credit exceeds a business enterprise’s liability for taxes imposed by this article in a taxable year, the excess may be taken as a credit against such business enterprise’s quarterly or monthly payment under Code Section 48-7-103 in the same manner as provided under Code Section 48-7-40 or 48-7-40.1 but not subject to the dollar limitations provided therein. Additionally, such tax credit shall be disallowed during any year that a business enterprise does not qualify as a PPE manufacturer.
(3) The additional tax credit provided for in paragraph (1) of this subsection may be used in conjunction with the tax credit provided for under Code Section 48-7-40.15.
(c) The additional tax credit provided for under paragraph (1) of subsection (b) of 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 and 48-7-40.1:
(A) The number of jobs otherwise qualified to claim a credit under this Code section;
(B) A verification that the taxpayer is a PPE manufacturer and a description of the PPE manufactured during the current taxable year;
(C) Any tax credit utilized by the taxpayer in prior years;
(D) The amount of tax credit carried over from prior years;
(E) The amount of tax credit utilized by the taxpayer in the current taxable year; and
(F) The amount of tax credit to be carried over to subsequent tax years.
(2) Any tax credit claimed under subsection (b) of 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 jobs were established.
(3) No taxpayer shall be eligible for the tax credit provided for under subsection (b) of this Code section for any job for which the taxpayer claims the tax credit provided for under Code Section 48-7-40.1B.
(d) No tax credit shall be claimed and allowed pursuant to this Code section for any jobs created on or after January 1, 2025.
(e) This Code section shall be effective as of January 1, 2020, and shall be applicable to taxable years beginning on and after January 1, 2020. History. Code 1981, § 48-7-40.1A, enacted by Ga. L. 2020, p. 184, § 2-1/HB 846; Ga. L. 2021, p. 289, § 2-2/SB 6. Effective date. This Code section became effective June 30, 2020. The 2021 amendment, effective July 1, 2021, added paragraph (c)(3). Editor’s notes. Ga. L. 2021, p. 289, § 1-1/SB 6, not codified by the General Assembly, provides, in part that: “Parts II through IV of this Act shall be known and may be cited as the ‘Georgia Economic Renewal Act of 2021.’ ” Law reviews. For article, “SB 6: The Review, Creation, and Extension of Georgia Tax Credits and Deductions,” see 38 Ga. St. U.L. Rev. 167, 168 (2021).