Georgia Department of Revenue v. Georgia Chemistry Council, Inc.

Mikell, Judge.

The Georgia Chemistry Council, Inc. (“GCC”), a trade association representing 22 companies in the bio-tech industry, filed a declaratory judgment action against the Georgia Department of Revenue (“GDOR”) to challenge the validity of a regulation 1 which interprets the research tax credit codified in OCGA § 48-7-40.12 (“the statute”). The statute allows a tax credit of ten percent of the amount by which a qualified taxpayer’s research expenditures exceed a “base amount,” which is defined as “the product of a business enterprise’s Georgia taxable net income in the current taxable…