Section 48-7-40.20 - [Effective 1/1/2025] Tax credits for businesses engaged in manufacturing cigarettes for exportation; amount; required information(a) As used in this Code section, the term: (1) "Base year exportation volume" means the number of cigarettes manufactured and exported by a business enterprise during the calendar year 1999.(2) "Business enterprise" means any business or the headquarters of any business which is engaged in manufacturing, warehousing and distribution, processing, telecommunications, tourism, and research and development industries. Such term shall not include retail businesses.(3) "Exportation" means the shipment of cigarettes manufactured in the United States to a foreign country sufficient to relieve the cigarettes in the shipment of the federal excise tax on cigarettes.(b) A business enterprise engaged in the business of manufacturing cigarettes for exportation to a foreign country is allowed a credit against the taxes levied by this article. The amount of credit allowed under this Code section is determined by comparing the exportation volume of the corporation in the year for which the credit is claimed with the corporation's base year exportation volume, rounded to the nearest whole percentage. The amount of credit allowed is as follows: | Current Year's Exportation Volume Compared to its Base Year's Exportation Volume | Amount of Credit per Thousand Cigarettes Exported |
120 percent or more | 40¢ |
119 percent - 100 percent | 35¢ |
99 percent - 80 percent | 30¢ |
79 percent - 60 percent | 25¢ |
59 percent - 50 percent | 20¢ |
Less than 50 percent | None |
(c) The credit allowed under this Code section may not exceed the lesser of $6 million or 50 percent of the amount of tax imposed by this article for the taxable year reduced by the sum of all other credits allowable, except tax payments made by or on behalf of the taxpayer. This limitation applies to the cumulative amount of the credit allowed in any tax year, including carry forwards claimed by the taxpayer under this Code section for previous tax years. Any unused portion of a credit allowed in this Code section may be carried forward for the next succeeding three years.(d) A business enterprise that claims the credit under this Code section must include the following with its tax return: (1) A statement of the base year exportation volume;(2) A statement of the exportation volume on which the credit is based; and(3) A list of the business enterprise's export volumes shown on its monthly reports to the Bureau of Alcohol, Tobacco, and Firearms of the United States Department of the Treasury for the months in the tax year for which the credit is claimed.Amended by 2024 Ga. Laws 598,§ 1-27, eff. 1/1/2025, app. only to unused tax credits generated during taxable years beginning on or after 1/1/2025.This section is set out more than once due to postponed, multiple, or conflicting amendments.