O.C.G.A. § 48-7-38 (2019)
Deduction for payments to classified subcontractors; disclosure of tax returns; maintenance of list of classified subcontractors
(a) As used in this Code section, the term:
(1) “Classified subcontractor” means a small business certified as a minority business enterprise, women owned business, or veteran owned business under Code Section 50-5-132.
(2) “Small business” shall have the same meaning as provided in Code Section 50-5-121.
(3) “State contract” means a contract for the purchase by the state of goods, property, or services or for the construction of any building or structure for the state, which contract is executed by any department, board, bureau, commission, or agency of state government, by any state authority, or by any officer, official, employee, or agent of any of the foregoing.
(b) In computing Georgia taxable net income of a corporation, partnership, or individual, there shall be subtracted from federal taxable income or federal adjusted gross income 10 percent of the amount of qualified payments to classified subcontractors. A payment to a classified subcontractor shall be a qualified payment if:
(1) The payment is for goods, personal property, or services furnished by the classified subcontractor to the taxpayer and delivered by the taxpayer to the state in furtherance of a state contract to which the taxpayer is a party; and the payment does not exceed the value of the goods, property, or services to the taxpayer;
(2) The payment is made during the taxable year for which the subtraction from federal taxable income or federal adjusted gross income is claimed; and
(3) The payment is made to a small business which, at the time of the payment, is certified as a minority business enterprise, women owned business, or veteran owned business under Code Section
(c) The total amount which may be subtracted under this Code section from federal taxable income or federal adjusted gross income of any taxpayer shall be limited to $100,000.00 per taxable year.
(d) The department may disclose to the commissioner of administrative services the income tax returns of taxpayers applying for certification as minority business enterprises, women owned businesses, and veteran owned businesses under Code Section 50-5-132. The commissioner of administrative services shall maintain and periodically revise a list of classified subcontractors and shall make such list available to the department no later than December 31 of each year and to the general public.
History
Code 1981, § 48-7-38, enacted by Ga. L. 1984, p. 1644, § 3; Ga. L. 1987, p. 191, § 2; Ga. L. 2001, p. 105, § 1; Ga. L. 2013, p. 141, § 48/HB 79; Ga. L. 2023, p. 43, § 3/HB 128, effective January 1, 2024. Amendments. The 2023 amendment, effective January 1, 2024, rewrote this Code section.
Annotations
Editor’s notes. Ga. L. 1984, p. 1644, § 4, not codified by the General Assembly, provided that the Act would apply to taxable years beginning on or after January 1, 1985. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, provides that this Act is applicable to taxable years ending on or after March 11, 1987, and that a taxpayer with a taxable year ending on or after January 1, 1987, and before March 11, 1987, may elect to have the provisions of that Act apply. Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that tax, penalty, and interest liabilities and refund eligibility for prior taxable years shall not be affected by that Act.
Ga. L. 1987, p. 191, § 10, not codified by the General Assembly, also provided that provisions of the federal Tax Reform Act of 1986 and of the Internal Revenue Code of 1986 which as of January 1, 1987, were not yet effective become effective for purposes of Georgia taxation on the same dates as they become effective for federal purposes. Ga. L. 2001, p. 105, § 4, not codified by the General Assembly, provides that the 2001 amendment shall be applicable to all taxable years ending on or after January 1, 2001. Code Section 50-5-121, referred to in paragraph (a)(2), was repealed by Ga. L. 2024, p. 922, § 11-1/SB 341, effective May 6, 2024. Law reviews. For article, “Revenue and Taxation: Amend Titles 48, 2, 28, 33, 36, 46, and 50 of the Official Code of Georgia Annotated, Relating Respectively to Revenue and Taxation, Agriculture, the General Assembly, Insurance, Local Government, Public Utilities, and State Government,” see 28 Georgia St. U.L. Rev. 217 (2011).