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2006 Georgia Code - 48-7-40.6
48-7-40.6. (a) As used in this Code section, the term: (1) 'Cost of operation' means reasonable direct operational costs incurred by an employer as a result of providing employer provided or employer sponsored child care facilities; provided, however, that the term cost of operation shall exclude the cost of any property that is qualified child care property. (2) 'Employer' means any employer upon whom an income tax is imposed by this article. (3) 'Employer provided' refers to child care offered on the premises of the employer. (4) 'Employer sponsored' refers to a contractual arrangement with a child care facility that is paid for by the employer. (5) 'Premises of the employer' refers to any location within the State of Georgia and located on the workplace premises of the employer providing the child care or one of the employers providing the child care in the event that the child care property is owned jointly or severally by the taxpayer and one or more employers; provided, however, that if such workplace premises are impracticable or otherwise unsuitable for the on-site location of such child care facility, as determined by the commissioner, such facility may be located within a reasonable distance of the premises of the employer. (6) 'Qualified child care property' means all real property and tangible personal property purchased or acquired on or after July 1, 1999, or which property is first placed in service on or after July 1, 1999, for use exclusively in the construction, expansion, improvement, or operation of an employer provided child care facility, but only if: (A) The facility is licensed or commissioned by the Department of Early Care and Learning pursuant to Chapter 1A of Title 20; (B) At least 95 percent of the children who use the facility are children of employees of: (i) The taxpayer and other employers in the event that the child care property is owned jointly or severally by the taxpayer and one or more employers; or (ii) A corporation that is a member of the taxpayeŕs 'affiliated group' within the meaning of Section 1504(a) of the Internal Revenue Code; and (C) The taxpayer has not previously claimed any tax credit for the cost of operation for such qualified child care property placed in service prior to taxable years beginning on or after January 1, 2000. Qualified child care property includes, but is not limited to, amounts expended on land acquisition, improvements, buildings, and building improvements and furniture, fixtures, and equipment. (7) 'Recapture amount' means, with respect to property as to which a recapture event has occurred, an amount equal to the applicable recapture percentage of the aggregate credits claimed under subsection (d) of this Code section for all taxable years preceding the recapture year, whether or not such credits were used. (8) 'Recapture event' refers to any disposition of qualified child care property by the taxpayer, or any other event or circumstance under which property ceases to be qualified child care property with respect to the taxpayer, except for: (A) Any transfer by reason of death; (B) Any transfer between spouses or incident to divorce; (C) Any transaction to which Section 381(a) of the Internal Revenue Code applies; (D) Any change in the form of conducting the taxpayeŕs trade or business so long as the property is retained in such trade or business as qualified child care property and the taxpayer retains a substantial interest in such trade or business; or (E) Any accident or casualty. (9) 'Recapture percentage' refers to the applicable percentage set forth in the following table:If the recapture The recapture event occurs within– percentage is: | |
Five full years after the qualified child care property is placed in service | 100 |
The sixth full year after the qualified child care property is placed in service | 90 |
The seventh full year after the qualified child care property is placed in service | 80 |
The eighth full year after the qualified child care property is placed in service | 70 |
The ninth full year after the qualified child care property is placed in service | 60 |
The tenth full year after the qualified child care property is placed in service | 50 |
The eleventh full year after the qualified child care property is placed in service | 40 |
The twelfth full year after the qualified child care property is placed in service | 30 |
The thirteenth full year after the qualified child care property is placed in service | 20 |
The fourteenth full year after the qualified child care property is placed in service | 10 |
Any period after the close of the fourteenth full year after the qualified child care property is placed in service | 0 |
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