Bill > HB389

This bill amends Georgia's income tax laws to allow dealers to claim credits for bad debts on private label credit cards or dealer credit programs, which are credit cards branded with a dealer's name or logo used for purchases from that dealer or its affiliates. Specifically, it allows dealers to receive a deduction or refund for the tax previously paid on the unpaid balance of accounts charged off as bad debts by a lender, provided these credit sales occurred on or after July 1, 2015, and the dealer maintains proper records. If a dealer or lender later collects on a previously written-off debt, the tax on the collected amount must be paid back. The bill also clarifies that these provisions do not apply to sales made by entities other than the dealer whose name is on the card or their affiliates and franchisees, and it sets an effective date of July 1, 2015.