GA
Georgia House Bill HB1090

Georgia 2023-2024 Regular Session

Georgia House Bill HB1090 Compare Versions

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1-24 LC 50 0836S
2-The Senate Committee on Finance offered the following
3-substitute to HB 1090:
1+24 LC 50 0761S
2+House Bill 1090 (COMMITTEE SUBTITUTE)
3+By: Representatives Newton of the 127
4+th
5+, Wiedower of the 121
6+st
7+, Gullett of the 19
8+th
9+, Crowe
10+of the 118
11+th
12+, and Hutchinson of the 106
13+th
14+
415 A BILL TO BE ENTITLED
516 AN ACT
6-To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to1
17+To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
18+1
719 income taxes, so as to expand the tax credit for contributions to foster child support2
820 organizations to allow such organizations to include as qualified expenditures wraparound3
921 and mentorship services for justice involved youth; to expand the wraparound services that4
1022 are qualified expenditures; to provide for such tax credits to be used by certain insurance5
1123 companies against certain tax liability; to provide for conditions and limitations; to provide6
12-for reporting and public website requirements; to provide for definitions; to provide for a7
13-sunset; to provide for information sharing and limitations thereof; to provide for related8
14-matters; to provide for an effective date and applicability; to repeal conflicting laws; and for9
15-other purposes.10
16-BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
17-SECTION 1.12
18-Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,13
19-is amended by revising Code Section 48-7-29.24, relating to tax credits for contributions to14
20-foster child support organizations, as follows:15
21-- 1 - 24 LC 50 0836S
22-"48-7-29.24.16
23-(a) As used in this Code section, the term:17
24-(1) 'Aging foster children' means:18
25-(A) Foster children aged 16 through 18 that would benefit based on projected status at19
26-age 18, as determined by the division; and20
27-(B) Former foster children up to and including age 21, or age 25 if legally possible,21
28-aged 16 through 25 who have not been adopted or reunited with families were:22
29-(i) In foster care for at least six months after reaching age 14 and who have not been23
30-or were not adopted or reunited with family prior to reaching age 18;24
31-(ii) Adopted after reaching age 14; or25
32-(iii) In foster care for at least six months after reaching age 14 and:26
33-(I) Meet the definition of 'homeless children and youths' pursuant to 42 U.S.C.27
34-Section 11434a(2), the McKinney-Vento Homeless Assistance Act; or28
35-(II) Qualify by reason of low income for the Supplemental Nutrition Assistance29
36-Program.30
37-(2) 'Aging-out program' means a program with the primary function of supporting aging31
38-foster children and justice involved youth.32
39-(2.1) 'Business enterprise' means any insurance company or the headquarters of any33
40-insurance company required to pay the tax provided for in Code Section 33-8-4.34
41-(3) 'Division' means the Division of Family and Children Services of the Department of35
42-Human Services.36
43-(4) 'Foster child support organization' means:37
44-(A) The aging-out program of the Technical College System of Georgia Foundation;38
45-(B) The aging-out program of the University System of Georgia Foundation, provided39
46-that such program is certified by the Governor's Office of Planning and Budget as an40
47-aging-out program; or41
48-- 2 - 24 LC 50 0836S
49-(C) Any domestic nonprofit corporation which maintains nonprofit status under42
50-Section 501(c)(3) of the Internal Revenue Code and tax exempt status under Code43
51-Section 48-7-25, that has the primary function of:44
52-(i) Operating an aging-out program that primarily supports aging foster children or45
53-operating as or supporting a Georgia licensed child-placing agency; or46
54-(ii) Disbursing funds directly to one or more of the entities identified in47
55-subparagraphs (A) or (B) or division (C)(i) of this paragraph.48
56-(4.1) 'Justice involved youth' means youth aged 16 through 25 who:49
57-(A) Were previously or are currently committed to the Department of Juvenile Justice50
58-pursuant to a court order as authorized by paragraph (11) of subsection (a) of Code51
59-Section 15-11-601; and52
60-(B) As a result of such commitment, have been previously placed or are currently53
61-placed in a nonsecure facility or community setting.54
62-(4.2) 'Mentorship services' means support services directly provided to an aging foster55
63-child or justice involved youth by a mentor, such as role modeling, informal counseling,56
64-guiding, motivating, and sharing time together.57
65-(5) 'Qualified contributions' means the preapproved contribution of funds made during58
66-the taxable year by a taxpayer or a business enterprise to a qualified organization under59
67-the terms and conditions of this Code section.60
68-(6) 'Qualified expenditures' means expenditures made by a qualified organization for:61
69-(A) The costs associated with tuition waivers granted pursuant to Code Section62
70-20-3-660;63
71-(B) Wraparound services for individuals aging foster children and justice involved64
72-youth who are:65
73-(1) Enrolled in attending a public postsecondary educational institution under a66
74-waiver granted pursuant to Code Section 20-3-660; or67
75-(2) Enrolled in a program to obtain a high school diploma or its equivalent;68
76-- 3 - 24 LC 50 0836S
77-(3) Enrolled in a recognized vocational school; or69
78-(4) Participating in a registered apprenticeship program, provided that the participant70
79-and the organization for which the participant is an apprentice document that the71
80-participant is compliant with the rules of the apprenticeship program.72
81-(C) Mentorship services provided to aging foster children and justice involved youth,73
82-provided that such expenditures shall not include: 74
83-(1) Compensation for a single mentor which exceeds no mentor shall be compensated 75
84-in excess of $100.00 per month for an aging foster child or justice involved youth or76
85-$500.00 $1,200.00 per year for any aging foster child or justice involved youth; or77
86-(2) Payments made to employees of a qualified organization who perform duties78
87-other than providing mentorship services for the organization.79
88-(7) 'Qualified organization' means a foster child support organization that has been80
89-certified and listed by the division pursuant to subsection (d) of this Code section.81
90-(8) 'Wraparound services' means services provided directly to aging foster children or82
91-justice involved youth to support their education through high school completion,83
92-vocational, and postsecondary education services, housing services, vocation services,84
93-medical services, counseling services, mentorship services, nutrition services,85
94-transportation services, or daily living essentials and clothing, and up to $150.00 $200.0086
95-per month in direct cash payments for use on personal necessities.87
96-(b)(1) The aggregate amount of tax credits allowed under this Code section shall not88
97-exceed $20 $30 million per calendar year.89
98-(2) Subject to the aggregate limit provided in paragraph (1) of this subsection and the90
99-limitations of subsection subsections (b.1), (b.2), and (k) of this Code section, each:91
100-(A) Taxpayer taxpayer shall be allowed a credit against the tax imposed by this chapter92
101-for qualified contributions made by the taxpayer on or after January 1, 2023, as follows:93
102-(A)(i) In the case of a single individual or a head of household, the actual amount of94
103-qualified contributions made;95
104-- 4 - 24 LC 50 0836S
105-(B)(ii) In the case of a married couple filing a joint return, the actual amount of96
24+for reporting requirements; to remove the prohibition of allowing such a tax credit for7
25+qualified contributions that were utilized as a deduction or exemption from taxable income;8
26+to provide for definitions; to provide for information sharing and limitations thereof; to9
27+provide for related matters; to provide for an effective date and applicability; to repeal10
28+conflicting laws; and for other purposes.11
29+BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12
30+SECTION 1.13
31+Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,14
32+is amended by revising Code Section 48-7-29.24, relating to tax credits for contributions to15
33+foster child support organizations, as follows:16
34+H. B. 1090 (SUB)
35+- 1 - 24 LC 50 0761S
36+"48-7-29.24.
37+17
38+(a) As used in this Code section, the term:18
39+(1) 'Aging foster children' means:
40+19
41+(A) Foster children aged 16 through 18 that would benefit based on projected status at20
42+age 18, as determined by the division; and21
43+(B) Former former foster children up to and including age 21, or age 25 if legally22
44+possible, who have not been adopted or reunited with families were:23
45+(A) In foster care for at least six months after reaching the age of 14 and who have not24
46+been or were not adopted or reunited with family prior to reaching the age of 18;25
47+(B) Adopted after reaching the age of 14; or26
48+(C) In foster care for at least six months after reaching the age of 14 and:27
49+(i) Meet the definition of “homeless children and youths” pursuant to 42 U.S.C.28
50+Section 11434a(2), the McKinney-Vento Homeless Assistance Act; or29
51+(ii) Qualify by reason of low income for the Supplemental Nutrition Assistance30
52+Program.31
53+(2) 'Aging-out program' means a program with the primary function of supporting aging32
54+foster children and justice involved youth.33
55+(2.1) 'Business enterprise' means any insurance company or the headquarters of any34
56+insurance company required to pay the tax provided for in Code Section 33-8-4.35
57+(3) 'Division' means the Division of Family and Children Services of the Department of36
58+Human Services.37
59+(4) 'Foster child support organization' means:38
60+(A) The aging-out program of the Technical College System of Georgia Foundation;39
61+(B) The aging-out program of the University System of Georgia Foundation, provided40
62+that such program is certified by the Governor's Office of Planning and Budget as an41
63+aging-out program; or42
64+H. B. 1090 (SUB)
65+- 2 - 24 LC 50 0761S
66+(C) Any domestic nonprofit corporation which maintains nonprofit status under
67+43
68+Section 501(c)(3) of the Internal Revenue Code and tax exempt status under Code44
69+Section 48-7-25, that has the primary function of:45
70+(i) Operating an aging-out program or operating as or supporting a Georgia licensed46
71+child-placing agency; or47
72+(ii) Disbursing funds directly to one or more of the entities identified in48
73+subparagraphs (A) or (B) or division (C)(i) of this paragraph.49
74+(4.1) 'Justice involved youth' means children and youth between the ages of 18 and 21
75+50
76+who:51
77+(A) Were previously or are currently committed to the Department of Juvenile Justice52
78+pursuant to a court order as authorized by paragraph (11) of subsection (a) of Code53
79+Section 15-11-601; and54
80+(B) As a result of such commitment, have been previously placed or are currently55
81+placed in a nonsecure facility or community setting.56
82+(4.2) 'Mentorship services' means support services directly provided to an aging foster57
83+child or justice involved youth by a mentor, such as role modeling, informal counseling,58
84+guiding, motivating, and sharing time together.59
85+(5) 'Qualified contributions' means the preapproved contribution of funds made during60
86+the taxable year by a taxpayer or business enterprise to a qualified organization under the61
87+terms and conditions of this Code section.62
88+(6) 'Qualified expenditures' means expenditures made by a qualified organization for:63
89+(A) The costs associated with tuition waivers granted pursuant to Code Section64
90+20-3-660;65
91+(B) Wraparound services for individuals aging foster children and justice involved66
92+youth who are:67
93+(1) Enrolled in attending a public postsecondary educational institution under a68
94+waiver granted pursuant to Code Section 20-3-660; or69
95+H. B. 1090 (SUB)
96+- 3 - 24 LC 50 0761S
97+(2) Enrolled in a program to obtain a high school diploma or its equivalent;70
98+(3) Enrolled in a recognized vocational school; or71
99+(4) Participating in a registered apprenticeship program, provided that the participant72
100+and the organization for which the participant is an apprentice document that the73
101+participant is compliant with the rules of the apprenticeship program.74
102+(C) Mentorship services provided to aging foster children and justice involved youth,75
103+provided that such expenditures shall not include: 76
104+(1) Compensation for a single mentor which exceeds no mentor shall be compensated 77
105+in excess of $100.00 per month for an aging foster child or justice involved youth or78
106+$500.00 $1,200.00 per year for any aging foster child or justice involved youth; or79
107+(2) Payments made to employees of a qualified organization who perform duties80
108+other than providing mentorship services for the organization.81
109+(7) 'Qualified organization' means a foster child support organization that has been82
110+certified and listed by the division pursuant to subsection (d) of this Code section.83
111+(8) 'Wraparound services' means services provided directly to aging foster children or84
112+justice involved youth to support their education through high school completion,85
113+vocational, and postsecondary education services, housing services, vocation services,86
114+medical services, counseling services, mentorship services, nutrition services,87
115+transportation services, or and up to $150.00 $200.00 per month in direct cash payments88
116+for use on personal necessities.89
117+(b)(1) The aggregate amount of tax credits allowed under this Code section shall not90
118+exceed $20 million per calendar year.91
119+(2) Subject to the aggregate limit provided in paragraph (1) of this subsection and the92
120+limitations of subsection (b.1) of this Code section, each:93
121+(A) Taxpayer taxpayer shall be allowed a credit against the tax imposed by this chapter94
122+for qualified contributions made by the taxpayer on or after January 1, 2023, as follows:95
123+H. B. 1090 (SUB)
124+- 4 - 24 LC 50 0761S
125+(A)(i) In the case of a single individual or a head of household, the actual amount of96
106126 qualified contributions made;97
107-(C)(iii) Anything to the contrary contained in subparagraph (A) or (B) division (i) or98
108-(ii) of this paragraph subparagraph notwithstanding, in the case of an individual99
109-taxpayer who is a member of a limited liability company duly formed under state law,100
110-a shareholder of a Subchapter 'S' corporation, or a partner in a partnership, the actual101
111-amount of qualified contributions it made; provided, however, that tax credits102
112-pursuant to this paragraph shall only be allowed for the portion of the income on103
113-which such tax was actually paid by such member of the limited liability company,104
114-shareholder of a Subchapter 'S' corporation, or partner in a partnership; or105
115-(D)(iv) In the case of a A corporation or other entity not provided for in106
116-subparagraphs (A) divisions (i) through (C) (iii) of this paragraph shall be allowed a107
117-credit against the tax imposed by this chapter, for qualified contributions in an amount108
118-not to exceed subparagraph, the actual amount of qualified contributions made.109
119-(B) Business enterprise shall be allowed a credit against the tax imposed by Code110
120-Section 33-8-4 in an amount equal to its qualified contributions.111
121-(b.1) For the period beginning on January 1 and ending on June 30 of each year, an112
122-individual a taxpayer shall not be allowed a credit for contributions, and the commissioner113
123-shall not preapprove any contributions, that exceed the following limits:114
124-(1) In the case of a single individual or a head of household, $2,500.00;115
125-(2) In the case of a married couple filing a joint return, $5,000.00;116
126-(3) In the case of an individual who is a member of a limited liability company duly117
127-formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a118
128-partnership, $5,000.00; or119
129-(4) In the case of a corporation or other entity not provided for in paragraphs (1) through120
130-(3) of this subsection, 10 percent of such entity's income tax liability.121
131-- 5 - 24 LC 50 0836S
132-(b.2) For the period beginning on July 1 and ending on December 31 of each year, to the122
133-extent that the aggregate amount of tax credits authorized by subsection (b) of this Code123
134-section has not been reached, the commissioner shall preapprove, deny, or prorate124
135-additional requested amounts on a first come, first served basis and shall provide notice to125
136-such taxpayer and the qualified organization of such preapproval, denial, or proration.126
137-(c) Not later than October 1, 2022, the The commissioner shall establish a page on the127
138-department's public website for the purpose of implementing this Code section. Such page128
139-shall contain, at a minimum:129
140-(1) A link to the division's web based application for certification as a qualified130
141-organization as provided for in subsection (d) of this Code section;131
142-(2) The current list of all qualified organizations;132
143-(3) The total amount of tax credits remaining and available for preapproval for each year;133
144-(4) A web based method for taxpayers or business enterprises seeking the preapproval134
145-status for contributions; and135
146-(5) The information received by the department from each qualified organization136
147-pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv) of this Code137
148-section.138
149-(d)(1) The division shall establish and maintain a web based application process for the139
150-purpose of certifying foster child support organizations as qualified organizations. At a140
151-minimum such application created by the division shall include an agreement submitted141
152-by the applicant to fully comply with the terms and conditions of this Code section.142
153-(2) The division shall certify any valid foster child support organization as a qualified143
154-organization upon successful completion of such application process.144
155-(3) The division shall certify any foster child support organization operating as a Georgia145
156-licensed child-placing agency as a qualified organization within ten days of receipt of a146
157-written request or application.147
158-- 6 - 24 LC 50 0836S
159-(4) The division shall accept a first round of applications for certification as qualified148
160-organizations by October 1, 2022, and shall certify and notify such applicants of the149
161-division's decision on or before November 30, 2022. Thereafter the division shall150
162-establish a process for rolling applications and certifications.151
163-(e)(1) Prior to making a contribution to any qualified organization, the taxpayer or152
164-business enterprise shall electronically notify the department, in a manner specified by153
165-the commissioner, of the total amount of contribution that such taxpayer or business154
166-enterprise intends to make to such qualified organization.155
167-(2) Within 30 days after receiving a request for preapproval of contributions, the156
168-commissioner shall preapprove, deny, or prorate requested amounts on a first come, first157
169-served basis and shall provide notice to such taxpayer or business enterprise and the158
170-qualified organization of such preapproval, denial, or proration. Such notices shall not159
171-require any signed release or notarized approval by the taxpayer or business enterprise. 160
172-The preapproval of contributions by the commissioner shall be based solely on the161
173-availability of tax credits subject to the aggregate total limit established under paragraph162
174-(1) of subsection (b) of this Code section.163
175-(3) Within 60 days after receiving the preapproval notice issued by the commissioner164
176-pursuant to paragraph (2) of this subsection, the taxpayer or business enterprise shall165
177-contribute the preapproved amount to the qualified organization or such preapproved166
178-contribution amount shall expire. The commissioner shall not include such expired167
179-amounts in determining the remaining amount available under the aggregate limit for the168
180-respective calendar year.169
181-(f)(1) Each qualified organization shall issue to each contributor a letter of confirmation170
182-of contribution, which shall include the taxpayer's or business enterprise's name, address,171
183-tax identification number, the amount of the qualified contribution, the date of the172
184-qualified contribution, and the total amount of the credit allowed to the taxpayer or173
185-business enterprise.174
186-- 7 - 24 LC 50 0836S
187-(2)(A) In order for a taxpayer or business enterprise to claim the tax credit allowed175
188-under this Code section, all such applicable letters as provided for in paragraph (1) of176
189-this subsection shall be attached to the taxpayer's tax return or a business enterprise's177
190-tax return provided for in Code Section 33-8-6. 178
191-(B) If When the taxpayer files an electronic return, such confirmation shall only be179
192-required to be electronically attached to the return if the Internal Revenue Service180
193-allows such attachments to be affixed and transmitted to the department. In any such181
194-event, the taxpayer shall maintain such confirmation and such confirmation shall only182
195-be made available to the commissioner upon request.183
196-(C) With respect to a business enterprise’s tax return provided for in Code Section184
197-33-8-6, the Commissioner of Insurance is authorized to promulgate rules and185
198-regulations regarding the manner in which such letters of confirmation of donations186
199-shall be filed in the case of tax returns filed electronically.187
200-(3) The commissioner shall allow tax credits for any preapproved contributions made to188
201-a qualified organization at the time the contributions were made if such organization was189
202-a qualified organization at the time of the commissioner's preapproval of the contributions190
203-and the taxpayer or business enterprise has otherwise complied with this Code section.191
204-(g)(1) Each qualified organization shall annually submit to the department no later than192
205-May 15 July 15 of each year:193
206-(A) A complete copy of its IRS Form 990 including applicable attachments, or for any194
207-qualified organization that is not required by federal law to file an IRS Form 990, such195
208-organization shall submit to the commissioner equivalent information on a form196
209-prescribed by the commissioner; provided, however, that, if the organization's IRS197
210-Form 990 is not prepared by the filing deadline, the organization shall provide such198
211-form at the same time it submits such form to the Internal Revenue Service; and199
212-- 8 - 24 LC 50 0836S
213-(B) A report detailing the contributions received during the calendar year pursuant to200
214-this Code section on a date determined by, and on a form provided by, the201
215-commissioner which shall include:202
216-(i) The total number and dollar value of individual contributions and tax credits203
217-approved. Individual contributions shall include contributions made by those filing204
218-income tax returns as a single individual or head of household and those filing joint205
219-returns;206
220-(ii) The total number and dollar value of corporate contributions and tax credits207
221-approved;208
222-(iii) The total number and dollar value of all qualified expenditures made; and209
223-(iv) A list of contributors, including the dollar value of each contribution and the210
224-dollar value of each approved tax credit; and211
225-(v) An accounting of the funds withheld from qualified contributions demonstrating212
226-that no more than 20 percent of such funds were withheld from qualified213
227-expenditures, as required by subparagraph (j)(1)(a) of this Code section.214
228-(2) Except for the information published in accordance with subsection (c) of this Code215
229-section, all information or reports relative to this Code section that were provided by216
230-qualified organizations to the department shall be confidential taxpayer information,217
231-governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such information218
232-relates to the contributor or the qualified organization.219
233-(h) By April 1 of each year, each qualified organization shall publicly post on its public220
234-website in a prominent place:221
235-(1) A a copy of its prior year's annual budget containing the total amount of funds222
236-received from all sources relative to the amount of qualified contributions it received and223
237-the total amount and a description of how such contributions were utilized.; and224
238-(2) A certification, signed by the chief executive officer of the qualified organization,225
239-which substantially complies with the following statement:226
240-- 9 - 24 LC 50 0836S
241-'I hereby certify that the foregoing financial declarations, including the amount of227
242-qualified contributions received by [the qualified organization] and the description of228
243-how [the qualified organization] utilized such contributions is true and correct. I further229
244-certify that no more than 20 percent of qualified contributions were retained by [the230
245-qualified organization].'231
246-(i)(1) A taxpayer or business enterprise shall not be allowed to designate or direct the232
247-taxpayer's or business enterprise's qualified contributions to any particular purpose or for233
248-the direct benefit of any particular individual.234
249-(2) A taxpayer or business enterprise that operates, owns, or is a subsidiary of an235
250-association, organization, or other entity that contracts directly with a qualified236
251-organization shall not be eligible for tax credits allowed under this Code section for237
252-contributions made to such qualified organization.238
253-(3) In soliciting contributions, no person shall represent or direct that, in exchange for239
254-making qualified contributions to any qualified organization, a taxpayer or business240
255-enterprise shall receive any direct or particular benefit. The status as a qualified241
256-organization shall be revoked for any qualified organization determined to be in violation242
257-of this paragraph and shall not be renewed for at least two years.243
258-(j)(1)(A) Each qualified organization shall use at least 80 percent of the funds received244
259-by it from qualified contributions to make qualified expenditures. Each qualified245
260-organization shall maintain accurate and current records of all expenditures of such246
261-funds and provide such records to the commissioner upon his or her request. In no247
262-event shall a qualified organization retain for its own use or apply to its overhead or248
263-administrative expenses more than 20 percent of the funds received pursuant to this249
264-Code section.250
265-(B) No foster child support organization that meets only the definition of such term as251
266-provided in division (a)(4)(C)(ii) of this Code section shall retain more than 2.5 percent252
267-of qualified contributions for itself for any reason and shall only serve to pass all of its253
268-- 10 - 24 LC 50 0836S
269-qualified contributions to one or more qualified organizations that are foster child254
270-support organizations as such term is defined in subparagraphs (a)(4)(A), (a)(4)(B), or255
271-division (a)(4)(C)(i) of this Code section.256
272-(2) A qualified organization that fails to comply with any of the requirements under this257
273-Code section shall be given written notice by the department of such failure to comply258
274-by certified mail and shall have 90 days from the receipt of such notice to correct all259
275-deficiencies.260
276-(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke 261
277-the foster child support organization's status as a qualified organization and such entity262
278-shall be immediately removed from the department's list of organizations. All263
279-applications for preapproval of tax credits for contributions to such foster child support264
280-organization under this Code section made on or after the date of such removal shall be265
281-rejected.266
282-(4) Each foster child support organization that has had its status revoked and has been267
283-delisted pursuant to this Code section, shall immediately cease all expenditures of funds268
284-received relative to this Code section, and shall transfer all of such funds that are not yet269
285-expended, to a properly operating qualified organization within 30 calendar days of its270
286-removal from the department's list of qualified organizations.271
287-(k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount272
288-of qualified contributions that were utilized as deductions or exemptions from taxable273
289-income.274
290-(2) In no event shall the total amount of the tax credit under this Code section for a275
291-taxable year exceed the taxpayer's income tax liability or such business enterprise's state276
292-insurance premium tax liability owed pursuant to Code Section 33-8-4. Any unused tax277
293-credit shall be allowed the taxpayer or business enterprise against the succeeding five278
294-years' tax liability. No such credit shall be allowed the taxpayer or business enterprise279
295-against prior years' tax liability.280
296-- 11 - 24 LC 50 0836S
297-(l) The chairperson of the House Appropriations Committee and the chairperson of the281
298-Senate Committee on Appropriations shall have the authority to request an audit282
299-concerning this Code section as a whole or of any one or more qualified organizations. The283
300-commissioner, the state auditor, each qualified organization, each aging-out program, and284
301-the director of the division shall cooperate to the full extent necessary to conduct such285
302-audits.286
303-(m) At the discretion of the commissioner or the director of the division, any suspected287
304-misuse of funds contributed or expended pursuant to this Code section shall be forwarded288
305-to the Attorney General for investigation and prosecution.289
306-(n) The commissioner shall promulgate rules and regulations necessary to implement and290
307-administer the provisions of this Code section.291
308-(o) This Code section shall stand repealed and reserved on December 31, 2029."292
309-SECTION 2.293
310-Said chapter is further amended by revising Code Section 48-7-60, relating to confidentiality294
311-of tax information, exceptions, authorized inspection by certain officials, furnishing295
312-information to local tax authorities, furnishing information to nonofficials, conditions, and296
313-effect of Code section, by adding a new subsection to read as follows:297
314-"(d.1) The commissioner shall be authorized in his or her sole discretion to share298
315-information necessary to efficiently administer and enforce the provisions of this chapter299
316-for the purpose of tax credit administration when another state agency has statutory300
317-authority to administer such tax credits. Any confidential information furnished pursuant301
318-to this Code section shall retain its character as confidential and privileged information.302
319-Any person who divulges confidential information obtained pursuant to this Code section303
320-shall be subject to the same penalties as provided under Code Section 48-7-61 for unlawful304
321-divulgence of confidential taxpayer information."305
322-- 12 - 24 LC 50 0836S
323-SECTION 3.306
324-This Act shall become effective on July 1, 2024, and shall be applicable to all taxable years307
325-beginning on or after January 1, 2024.308
326-SECTION 4.309
327-All laws and parts of laws in conflict with this Act are repealed.310
328-- 13 -
127+(B)(ii) In the case of a married couple filing a joint return, the actual amount of98
128+qualified contributions made;99
129+(C)(iii) Anything to the contrary contained in subparagraph (A) or (B) of this100
130+paragraph notwithstanding, in the case of an individual taxpayer who is a member of101
131+a limited liability company duly formed under state law, a shareholder of a102
132+Subchapter 'S' corporation, or a partner in a partnership, the actual amount of qualified103
133+contributions it made; provided, however, that tax credits pursuant to this paragraph104
134+shall only be allowed for the portion of the income on which such tax was actually105
135+paid by such member of the limited liability company, shareholder of a Subchapter106
136+'S' corporation, or partner in a partnership; or107
137+(D)(iv) A corporation or other entity not provided for in subparagraphs (A)108
138+divisions (i) through (C) (iii) of this paragraph subparagraph shall be allowed a credit109
139+against the tax imposed by this chapter, for qualified contributions in an amount not110
140+to exceed the actual amount of qualified contributions made.111
141+(B) Business enterprise shall be allowed a credit against the tax imposed by Code112
142+Section 33-8-4 in an amount equal to its qualified contributions.113
143+(b.1) For the period beginning on January 1 and ending on June 30 of each year, an114
144+individual taxpayer shall not be allowed a credit for contributions, and the commissioner115
145+shall not preapprove any contributions, that exceed the following limits:116
146+(1) In the case of a single individual or a head of household, $2,500.00;117
147+(2) In the case of a married couple filing a joint return, $5,000.00;118
148+(3) In the case of an individual who is a member of a limited liability company duly119
149+formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a120
150+partnership, $5,000.00; or121
151+H. B. 1090 (SUB)
152+- 5 - 24 LC 50 0761S
153+(4) In the case of a corporation or other entity not provided for in paragraphs (1) through
154+122
155+(3) of this subsection, 10 percent of such entity's income
156+ tax liability.123
157+(b.2) For the period beginning on July 1 and ending on December 31 of each year, to the124
158+extent that the total amount of tax credits authorized by subsection (b) of this Code section125
159+has not been reached, the commissioner shall preapprove, deny, or prorate additional126
160+requested amounts on a first come, first served basis and shall provide notice to such127
161+taxpayer and the qualified organization of such preapproval, denial, or proration.128
162+(c) Not later than October 1, 2022, the The commissioner shall establish a page on the129
163+department's website for the purpose of implementing this Code section. Such page shall130
164+contain, at a minimum:131
165+(1) A link to the division's web based application for certification as a qualified132
166+organization as provided for in subsection (d) of this Code section;133
167+(2) The current list of all qualified organizations;134
168+(3) The total amount of tax credits remaining and available for preapproval for each year;135
169+(4) A web based method for taxpayers or business enterprises seeking the preapproval136
170+status for contributions; and137
171+(5) The information received by the department from each qualified organization138
172+pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv) of this Code139
173+section.140
174+(d)(1) The division shall establish and maintain a web based application process for the141
175+purpose of certifying foster child support organizations as qualified organizations. At a142
176+minimum such application created by the division shall include an agreement submitted143
177+by the applicant to fully comply with the terms and conditions of this Code section.144
178+(2) The division shall certify any valid foster child support organization as a qualified145
179+organization upon successful completion of such application process.146
180+H. B. 1090 (SUB)
181+- 6 - 24 LC 50 0761S
182+(3) The division shall certify any foster child support organization operating as a Georgia
183+147
184+licensed child-placing agency as a qualified organization within ten days of receipt of a148
185+written request or application.149
186+(4) The division shall accept a first round of applications for certification as qualified
187+150
188+organizations by October 1, 2022, and shall certify and notify such applicants of the151
189+division's decision on or before November 30, 2022. Thereafter the division shall152
190+establish a process for rolling applications and certifications.153
191+(e)(1) Prior to making a contribution to any qualified organization, the taxpayer or154
192+business enterprise shall electronically notify the department, in a manner specified by155
193+the commissioner, of the total amount of contribution that such taxpayer or business156
194+enterprise intends to make to such qualified organization.157
195+(2) Within 30 days after receiving a request for preapproval of contributions, the158
196+commissioner shall preapprove, deny, or prorate requested amounts on a first come, first159
197+served basis and shall provide notice to such taxpayer or business enterprise and the160
198+qualified organization of such preapproval, denial, or proration. Such notices shall not161
199+require any signed release or notarized approval by the taxpayer or business enterprise. 162
200+The preapproval of contributions by the commissioner shall be based solely on the163
201+availability of tax credits subject to the aggregate total limit established under paragraph164
202+(1) of subsection (b) of this Code section.165
203+(3) Within 60 days after receiving the preapproval notice issued by the commissioner166
204+pursuant to paragraph (2) of this subsection, the taxpayer or business enterprise shall167
205+contribute the preapproved amount to the qualified organization or such preapproved168
206+contribution amount shall expire. The commissioner shall not include such expired169
207+amounts in determining the remaining amount available under the aggregate limit for the170
208+respective calendar year.171
209+(f)(1) Each qualified organization shall issue to each contributor a letter of confirmation172
210+of contribution, which shall include the taxpayer's or business enterprise's name, address,173
211+H. B. 1090 (SUB)
212+- 7 - 24 LC 50 0761S
213+tax identification number, the amount of the qualified contribution, the date of the
214+174
215+qualified contribution, and the total amount of the credit allowed to the taxpayer or
216+175
217+business enterprise.176
218+(2)(A) In order for a taxpayer or business enterprise to claim the tax credit allowed177
219+under this Code section, all such applicable letters as provided for in paragraph (1) of178
220+this subsection shall be attached to the taxpayer's tax return or a business enterprise's179
221+tax return provided for in Code Section 33-8-6. 180
222+(B) If When the taxpayer files an electronic return, such confirmation shall only be181
223+required to be electronically attached to the return if the Internal Revenue Service182
224+allows such attachments to be affixed and transmitted to the department. In any such183
225+event, the taxpayer shall maintain such confirmation and such confirmation shall only184
226+be made available to the commissioner upon request.185
227+(C) With respect to a business enterprise’s tax return provided for in Code Section186
228+33-8-6, the Commissioner of Insurance is authorized to promulgate rules and187
229+regulations regarding the manner in which such letters of confirmation of donations188
230+shall be filed in the case of tax returns filed electronically.189
231+(3) The commissioner shall allow tax credits for any preapproved contributions made to190
232+a qualified organization at the time the contributions were made if such organization was191
233+a qualified organization at the time of the commissioner's preapproval of the contributions192
234+and the taxpayer or business enterprise has otherwise complied with this Code section.193
235+(g)(1) Each qualified organization shall annually submit to the department no later than194
236+May 15 July 15 of each year:195
237+(A) A complete copy of its IRS Form 990 including applicable attachments, or for any196
238+qualified organization that is not required by federal law to file an IRS Form 990, such197
239+organization shall submit to the commissioner equivalent information on a form198
240+prescribed by the commissioner; provided, however, that, if the organization's IRS199
241+H. B. 1090 (SUB)
242+- 8 - 24 LC 50 0761S
243+Form 990 is not prepared by the filing deadline, the organization shall provide such200
244+form at the same time it submits such form to the Internal Revenue Service; and201
245+(B) A report detailing the contributions received during the calendar year pursuant to202
246+this Code section on a date determined by, and on a form provided by, the203
247+commissioner which shall include:204
248+(i) The total number and dollar value of individual contributions and tax credits205
249+approved. Individual contributions shall include contributions made by those filing206
250+income tax returns as a single individual or head of household and those filing joint207
251+returns;208
252+(ii) The total number and dollar value of corporate contributions and tax credits209
253+approved;210
254+(iii) The total number and dollar value of all qualified expenditures made; and211
255+(iv) A list of contributors, including the dollar value of each contribution and the212
256+dollar value of each approved tax credit; and213
257+(v) An accounting of the funds withheld from qualified contributions demonstrating214
258+that no more than 20 percent of such funds were withheld from qualified215
259+expenditures, as required by subparagraph (j)(1)(a) of this Code section.216
260+(2) Except for the information published in accordance with subsection (c) of this Code217
261+section, all information or reports relative to this Code section that were provided by218
262+qualified organizations to the department shall be confidential taxpayer information,219
263+governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such information220
264+relates to the contributor or the qualified organization.221
265+(h) By April 1 of each year each qualified organization shall publicly post on its website222
266+in a prominent place a copy of its prior year's annual budget containing the total amount223
267+of funds received from all sources relative to the amount of qualified contributions it224
268+received and the total amount and a description of how such contributions were utilized.225
269+H. B. 1090 (SUB)
270+- 9 - 24 LC 50 0761S
271+(i)(1) A taxpayer or business enterprise shall not be allowed to designate or direct the226
272+taxpayer's or business enterprise's qualified contributions to any particular purpose or for227
273+the direct benefit of any particular individual.228
274+(2) A taxpayer or business enterprise that operates, owns, or is a subsidiary of an229
275+association, organization, or other entity that contracts directly with a qualified230
276+organization shall not be eligible for tax credits allowed under this Code section for231
277+contributions made to such qualified organization.232
278+(3) In soliciting contributions, no person shall represent or direct that, in exchange for233
279+making qualified contributions to any qualified organization, a taxpayer or business234
280+enterprise shall receive any direct or particular benefit. The status as a qualified235
281+organization shall be revoked for any qualified organization determined to be in violation236
282+of this paragraph and shall not be renewed for at least two years.237
283+(j)(1)(A) Each qualified organization shall use at least 80 percent of the funds received238
284+by it from qualified contributions to make qualified expenditures. Each qualified239
285+organization shall maintain accurate and current records of all expenditures of such240
286+funds and provide such records to the commissioner upon his or her request. In no241
287+event shall a qualified organization retain for its own use or apply to its overhead or242
288+administrative expenses more than 20 percent of the funds received pursuant to this243
289+Code section.244
290+(B) No foster child support organization that meets only the definition of such term as245
291+provided in division (a)(4)(C)(ii) of this Code section shall retain more than 2.5 percent246
292+of qualified contributions for itself for any reason and shall only serve to pass all of its247
293+qualified contributions to one or more qualified organizations that are foster child248
294+support organizations as such term is defined in subparagraphs (a)(4)(A), (a)(4)(B), or249
295+division (a)(4)(C)(i) of this Code section.250
296+(2) A qualified organization that fails to comply with any of the requirements under this251
297+Code section shall be given written notice by the department of such failure to comply252
298+H. B. 1090 (SUB)
299+- 10 - 24 LC 50 0761S
300+by certified mail and shall have 90 days from the receipt of such notice to correct all
301+253
302+deficiencies.254
303+(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke 255
304+the foster child support organization's status as a qualified organization and such entity256
305+shall be immediately removed from the department's list of organizations. All257
306+applications for preapproval of tax credits for contributions to such foster child support258
307+organization under this Code section made on or after the date of such removal shall be259
308+rejected.260
309+(4) Each foster child support organization that has had its status revoked and has been261
310+delisted pursuant to this Code section, shall immediately cease all expenditures of funds262
311+received relative to this Code section, and shall transfer all of such funds that are not yet263
312+expended, to a properly operating qualified organization within 30 calendar days of its264
313+removal from the department's list of qualified organizations.265
314+(k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount of
315+266
316+qualified contributions that were utilized as deductions or exemptions from taxable income.267
317+(2) In no event shall the total amount of the tax credit under this Code section for a268
318+taxable year exceed the taxpayer's income tax liability or such business enterprise's state269
319+insurance premium tax liability owed pursuant to Code Section 33-8-4. Any unused tax270
320+credit shall be allowed the taxpayer or business enterprise against the succeeding five271
321+years' tax liability. No such credit shall be allowed the taxpayer or business enterprise272
322+against prior years' tax liability.273
323+(l) The chairperson of the House Appropriations Committee and the chairperson of the274
324+Senate Committee on Appropriations shall have the authority to request an audit275
325+concerning this Code section as a whole or of any one or more qualified organizations. The276
326+commissioner, the state auditor, each qualified organization, each aging-out program, and277
327+the director of the division shall cooperate to the full extent necessary to conduct such278
328+audits.279
329+H. B. 1090 (SUB)
330+- 11 - 24 LC 50 0761S
331+(m) At the discretion of the commissioner or the director of the division, any suspected
332+280
333+misuse of funds contributed or expended pursuant to this Code section shall be forwarded281
334+to the Attorney General for investigation and prosecution.282
335+(n) The commissioner shall promulgate rules and regulations necessary to implement and283
336+administer the provisions of this Code section."284
337+SECTION 2.285
338+Said chapter is further amended by revising Code Section 48-7-60, relating to confidentiality286
339+of tax information, exceptions, authorized inspection by certain officials, furnishing287
340+information to local tax authorities, furnishing information to nonofficials, conditions, and288
341+effect of Code section, by adding a new subsection to read as follows:289
342+"(d.1) The commissioner shall be authorized in his or her sole discretion to share
343+290
344+information necessary to efficiently administer and enforce the provisions of this chapter291
345+for the purpose of tax credit administration when another state agency has statutory292
346+authority to administer such tax credits. Any confidential information furnished pursuant293
347+to this Code section shall retain its character as confidential and privileged information.294
348+Any person who divulges confidential information obtained pursuant to this Code section295
349+shall be subject to the same penalties as provided under Code Section 48-7-61 for unlawful296
350+divulgence of confidential taxpayer information."297
351+SECTION 3.298
352+This Act shall become effective on July 1, 2024, and shall be applicable to all taxable years299
353+beginning on or after January 1, 2024.300
354+SECTION 4.301
355+All laws and parts of laws in conflict with this Act are repealed.302
356+H. B. 1090 (SUB)
357+- 12 -