GA Code § 48-7-38 - Deduction for Payments to Classified Subcontractors; Disclosure of Tax Returns; Maintenance of List of Classified Subcontractors.

Section 48-7-38 - Deduction for Payments to Classified Subcontractors; Disclosure of Tax Returns; Maintenance of List of Classified Subcontractors.Section 48-7-38 - Deduction for Payments to Classified Subcontractors; Disclosure of Tax Returns; Maintenance of List of Classified Subcontractors.

Section 48-7-37 - Taxes Due From Members of Armed Forces Dying on Active Duty; Applicability of Tax to Particular Taxable Years; Assessment of Unpaid Taxes; Abatement; Credit or Refund of Collected Payments.Section 48-7-39 - Depreciation of Property Placed in Service in Prior Tax Years.

(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 50-5-132.

(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.

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