24 LC 50 0836S
The Senate Committee on Finance offered the following
substitute to HB 1090:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to1
income taxes, so as to expand the tax credit for contributions to foster child support2
organizations to allow such organizations to include as qualified expenditures wraparound3
and mentorship services for justice involved youth; to expand the wraparound services that4
are qualified expenditures; to provide for such tax credits to be used by certain insurance5
companies against certain tax liability; to provide for conditions and limitations; to provide6
for reporting and public website requirements; to provide for definitions; to provide for a7
sunset; to provide for information sharing and limitations thereof; to provide for related8
matters; to provide for an effective date and applicability; to repeal conflicting laws; and for9
other purposes.10
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11
SECTION 1.12
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,13
is amended by revising Code Section 48-7-29.24, relating to tax credits for contributions to14
foster child support organizations, as follows:15
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"48-7-29.24.16
(a) As used in this Code section, the term:17
(1) 'Aging foster children' means:18
(A) Foster children aged 16 through 18 that would benefit based on projected status at19
age 18, as determined by the division; and20
(B) Former foster children up to and including age 21, or age 25 if legally possible,21
aged 16 through 25 who have not been adopted or reunited with families were:22
(i) In foster care for at least six months after reaching age 14 and who have not been23
or were not adopted or reunited with family prior to reaching age 18;24
(ii) Adopted after reaching age 14; or25
(iii) In foster care for at least six months after reaching age 14 and:26
(I) Meet the definition of 'homeless children and youths' pursuant to 42 U.S.C.27
Section 11434a(2), the McKinney-Vento Homeless Assistance Act; or28
(II) Qualify by reason of low income for the Supplemental Nutrition Assistance29
Program.30
(2) 'Aging-out program' means a program with the primary function of supporting aging31
foster children and justice involved youth.32
(2.1) 'Business enterprise' means any insurance company or the headquarters of any33
insurance company required to pay the tax provided for in Code Section 33-8-4.34
(3) 'Division' means the Division of Family and Children Services of the Department of35
Human Services.36
(4) 'Foster child support organization' means:37
(A) The aging-out program of the Technical College System of Georgia Foundation;38
(B) The aging-out program of the University System of Georgia Foundation, provided39
that such program is certified by the Governor's Office of Planning and Budget as an40
aging-out program; or41
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(C) Any domestic nonprofit corporation which maintains nonprofit status under42
Section 501(c)(3) of the Internal Revenue Code and tax exempt status under Code43
Section 48-7-25, that has the primary function of:44
(i) Operating an aging-out program that primarily supports aging foster children or45
operating as or supporting a Georgia licensed child-placing agency; or46
(ii) Disbursing funds directly to one or more of the entities identified in47
subparagraphs (A) or (B) or division (C)(i) of this paragraph.48
(4.1) 'Justice involved youth' means youth aged 16 through 25 who:49
(A) Were previously or are currently committed to the Department of Juvenile Justice50
pursuant to a court order as authorized by paragraph (11) of subsection (a) of Code51
Section 15-11-601; and52
(B) As a result of such commitment, have been previously placed or are currently53
placed in a nonsecure facility or community setting.54
(4.2) 'Mentorship services' means support services directly provided to an aging foster55
child or justice involved youth by a mentor, such as role modeling, informal counseling,56
guiding, motivating, and sharing time together.57
(5) 'Qualified contributions' means the preapproved contribution of funds made during58
the taxable year by a taxpayer or a business enterprise to a qualified organization under59
the terms and conditions of this Code section.60
(6) 'Qualified expenditures' means expenditures made by a qualified organization for:61
(A) The costs associated with tuition waivers granted pursuant to Code Section62
20-3-660;63
(B) Wraparound services for individuals aging foster children and justice involved64
youth who are:65
(1) Enrolled in attending a public postsecondary educational institution under a66
waiver granted pursuant to Code Section 20-3-660; or67
(2) Enrolled in a program to obtain a high school diploma or its equivalent;68
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(3) Enrolled in a recognized vocational school; or69
(4) Participating in a registered apprenticeship program, provided that the participant70
and the organization for which the participant is an apprentice document that the71
participant is compliant with the rules of the apprenticeship program.72
(C) Mentorship services provided to aging foster children and justice involved youth,73
provided that such expenditures shall not include: 74
(1) Compensation for a single mentor which exceeds no mentor shall be compensated 75
in excess of $100.00 per month for an aging foster child or justice involved youth or76
$500.00 $1,200.00 per year for any aging foster child or justice involved youth; or77
(2) Payments made to employees of a qualified organization who perform duties78
other than providing mentorship services for the organization.79
(7) 'Qualified organization' means a foster child support organization that has been80
certified and listed by the division pursuant to subsection (d) of this Code section.81
(8) 'Wraparound services' means services provided directly to aging foster children or82
justice involved youth to support their education through high school completion,83
vocational, and postsecondary education services, housing services, vocation services,84
medical services, counseling services, mentorship services, nutrition services,85
transportation services, or daily living essentials and clothing, and up to $150.00 $200.0086
per month in direct cash payments for use on personal necessities.87
(b)(1) The aggregate amount of tax credits allowed under this Code section shall not88
exceed $20 $30 million per calendar year.89
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection and the90
limitations of subsection subsections (b.1), (b.2), and (k) of this Code section, each:91
(A) Taxpayer taxpayer shall be allowed a credit against the tax imposed by this chapter92
for qualified contributions made by the taxpayer on or after January 1, 2023, as follows:93
(A)(i) In the case of a single individual or a head of household, the actual amount of94
qualified contributions made;95
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(B)(ii) In the case of a married couple filing a joint return, the actual amount of96
qualified contributions made;97
(C)(iii) Anything to the contrary contained in subparagraph (A) or (B) division (i) or98
(ii) of this paragraph subparagraph notwithstanding, in the case of an individual99
taxpayer who is a member of a limited liability company duly formed under state law,100
a shareholder of a Subchapter 'S' corporation, or a partner in a partnership, the actual101
amount of qualified contributions it made; provided, however, that tax credits102
pursuant to this paragraph shall only be allowed for the portion of the income on103
which such tax was actually paid by such member of the limited liability company,104
shareholder of a Subchapter 'S' corporation, or partner in a partnership; or105
(D)(iv) In the case of a A corporation or other entity not provided for in106
subparagraphs (A) divisions (i) through (C) (iii) of this paragraph shall be allowed a107
credit against the tax imposed by this chapter, for qualified contributions in an amount108
not to exceed subparagraph, the actual amount of qualified contributions made.109
(B) Business enterprise shall be allowed a credit against the tax imposed by Code110
Section 33-8-4 in an amount equal to its qualified contributions.111
(b.1) For the period beginning on January 1 and ending on June 30 of each year, an112
individual a taxpayer shall not be allowed a credit for contributions, and the commissioner113
shall not preapprove any contributions, that exceed the following limits:114
(1) In the case of a single individual or a head of household, $2,500.00;115
(2) In the case of a married couple filing a joint return, $5,000.00;116
(3) In the case of an individual who is a member of a limited liability company duly117
formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a118
partnership, $5,000.00; or119
(4) In the case of a corporation or other entity not provided for in paragraphs (1) through120
(3) of this subsection, 10 percent of such entity's income tax liability.121
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(b.2) For the period beginning on July 1 and ending on December 31 of each year, to the122
extent that the aggregate amount of tax credits authorized by subsection (b) of this Code123
section has not been reached, the commissioner shall preapprove, deny, or prorate124
additional requested amounts on a first come, first served basis and shall provide notice to125
such taxpayer and the qualified organization of such preapproval, denial, or proration.126
(c) Not later than October 1, 2022, the The commissioner shall establish a page on the127
department's public website for the purpose of implementing this Code section. Such page128
shall contain, at a minimum:129
(1) A link to the division's web based application for certification as a qualified130
organization as provided for in subsection (d) of this Code section;131
(2) The current list of all qualified organizations;132
(3) The total amount of tax credits remaining and available for preapproval for each year;133
(4) A web based method for taxpayers or business enterprises seeking the preapproval134
status for contributions; and135
(5) The information received by the department from each qualified organization136
pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv) of this Code137
section.138
(d)(1) The division shall establish and maintain a web based application process for the139
purpose of certifying foster child support organizations as qualified organizations. At a140
minimum such application created by the division shall include an agreement submitted141
by the applicant to fully comply with the terms and conditions of this Code section.142
(2) The division shall certify any valid foster child support organization as a qualified143
organization upon successful completion of such application process.144
(3) The division shall certify any foster child support organization operating as a Georgia145
licensed child-placing agency as a qualified organization within ten days of receipt of a146
written request or application.147
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(4) The division shall accept a first round of applications for certification as qualified148
organizations by October 1, 2022, and shall certify and notify such applicants of the149
division's decision on or before November 30, 2022. Thereafter the division shall150
establish a process for rolling applications and certifications.151
(e)(1) Prior to making a contribution to any qualified organization, the taxpayer or152
business enterprise shall electronically notify the department, in a manner specified by153
the commissioner, of the total amount of contribution that such taxpayer or business154
enterprise intends to make to such qualified organization.155
(2) Within 30 days after receiving a request for preapproval of contributions, the156
commissioner shall preapprove, deny, or prorate requested amounts on a first come, first157
served basis and shall provide notice to such taxpayer or business enterprise and the158
qualified organization of such preapproval, denial, or proration. Such notices shall not159
require any signed release or notarized approval by the taxpayer or business enterprise. 160
The preapproval of contributions by the commissioner shall be based solely on the161
availability of tax credits subject to the aggregate total limit established under paragraph162
(1) of subsection (b) of this Code section.163
(3) Within 60 days after receiving the preapproval notice issued by the commissioner164
pursuant to paragraph (2) of this subsection, the taxpayer or business enterprise shall165
contribute the preapproved amount to the qualified organization or such preapproved166
contribution amount shall expire. The commissioner shall not include such expired167
amounts in determining the remaining amount available under the aggregate limit for the168
respective calendar year.169
(f)(1) Each qualified organization shall issue to each contributor a letter of confirmation170
of contribution, which shall include the taxpayer's or business enterprise's name, address,171
tax identification number, the amount of the qualified contribution, the date of the172
qualified contribution, and the total amount of the credit allowed to the taxpayer or173
business enterprise.174
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(2)(A) In order for a taxpayer or business enterprise to claim the tax credit allowed175
under this Code section, all such applicable letters as provided for in paragraph (1) of176
this subsection shall be attached to the taxpayer's tax return or a business enterprise's177
tax return provided for in Code Section 33-8-6. 178
(B) If When the taxpayer files an electronic return, such confirmation shall only be179
required to be electronically attached to the return if the Internal Revenue Service180
allows such attachments to be affixed and transmitted to the department. In any such181
event, the taxpayer shall maintain such confirmation and such confirmation shall only182
be made available to the commissioner upon request.183
(C) With respect to a business enterprise’s tax return provided for in Code Section184
33-8-6, the Commissioner of Insurance is authorized to promulgate rules and185
regulations regarding the manner in which such letters of confirmation of donations186
shall be filed in the case of tax returns filed electronically.187
(3) The commissioner shall allow tax credits for any preapproved contributions made to188
a qualified organization at the time the contributions were made if such organization was189
a qualified organization at the time of the commissioner's preapproval of the contributions190
and the taxpayer or business enterprise has otherwise complied with this Code section.191
(g)(1) Each qualified organization shall annually submit to the department no later than192
May 15 July 15 of each year:193
(A) A complete copy of its IRS Form 990 including applicable attachments, or for any194
qualified organization that is not required by federal law to file an IRS Form 990, such195
organization shall submit to the commissioner equivalent information on a form196
prescribed by the commissioner; provided, however, that, if the organization's IRS197
Form 990 is not prepared by the filing deadline, the organization shall provide such198
form at the same time it submits such form to the Internal Revenue Service; and199
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(B) A report detailing the contributions received during the calendar year pursuant to200
this Code section on a date determined by, and on a form provided by, the201
commissioner which shall include:202
(i) The total number and dollar value of individual contributions and tax credits203
approved. Individual contributions shall include contributions made by those filing204
income tax returns as a single individual or head of household and those filing joint205
returns;206
(ii) The total number and dollar value of corporate contributions and tax credits207
approved;208
(iii) The total number and dollar value of all qualified expenditures made; and209
(iv) A list of contributors, including the dollar value of each contribution and the210
dollar value of each approved tax credit; and211
(v) An accounting of the funds withheld from qualified contributions demonstrating212
that no more than 20 percent of such funds were withheld from qualified213
expenditures, as required by subparagraph (j)(1)(a) of this Code section.214
(2) Except for the information published in accordance with subsection (c) of this Code215
section, all information or reports relative to this Code section that were provided by216
qualified organizations to the department shall be confidential taxpayer information,217
governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such information218
relates to the contributor or the qualified organization.219
(h) By April 1 of each year, each qualified organization shall publicly post on its public220
website in a prominent place:221
(1) A a copy of its prior year's annual budget containing the total amount of funds222
received from all sources relative to the amount of qualified contributions it received and223
the total amount and a description of how such contributions were utilized.; and224
(2) A certification, signed by the chief executive officer of the qualified organization,225
which substantially complies with the following statement:226
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'I hereby certify that the foregoing financial declarations, including the amount of227
qualified contributions received by [the qualified organization] and the description of228
how [the qualified organization] utilized such contributions is true and correct. I further229
certify that no more than 20 percent of qualified contributions were retained by [the230
qualified organization].'231
(i)(1) A taxpayer or business enterprise shall not be allowed to designate or direct the232
taxpayer's or business enterprise's qualified contributions to any particular purpose or for233
the direct benefit of any particular individual.234
(2) A taxpayer or business enterprise that operates, owns, or is a subsidiary of an235
association, organization, or other entity that contracts directly with a qualified236
organization shall not be eligible for tax credits allowed under this Code section for237
contributions made to such qualified organization.238
(3) In soliciting contributions, no person shall represent or direct that, in exchange for239
making qualified contributions to any qualified organization, a taxpayer or business240
enterprise shall receive any direct or particular benefit. The status as a qualified241
organization shall be revoked for any qualified organization determined to be in violation242
of this paragraph and shall not be renewed for at least two years.243
(j)(1)(A) Each qualified organization shall use at least 80 percent of the funds received244
by it from qualified contributions to make qualified expenditures. Each qualified245
organization shall maintain accurate and current records of all expenditures of such246
funds and provide such records to the commissioner upon his or her request. In no247
event shall a qualified organization retain for its own use or apply to its overhead or248
administrative expenses more than 20 percent of the funds received pursuant to this249
Code section.250
(B) No foster child support organization that meets only the definition of such term as251
provided in division (a)(4)(C)(ii) of this Code section shall retain more than 2.5 percent252
of qualified contributions for itself for any reason and shall only serve to pass all of its253
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qualified contributions to one or more qualified organizations that are foster child254
support organizations as such term is defined in subparagraphs (a)(4)(A), (a)(4)(B), or255
division (a)(4)(C)(i) of this Code section.256
(2) A qualified organization that fails to comply with any of the requirements under this257
Code section shall be given written notice by the department of such failure to comply258
by certified mail and shall have 90 days from the receipt of such notice to correct all259
deficiencies.260
(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke 261
the foster child support organization's status as a qualified organization and such entity262
shall be immediately removed from the department's list of organizations. All263
applications for preapproval of tax credits for contributions to such foster child support264
organization under this Code section made on or after the date of such removal shall be265
rejected.266
(4) Each foster child support organization that has had its status revoked and has been267
delisted pursuant to this Code section, shall immediately cease all expenditures of funds268
received relative to this Code section, and shall transfer all of such funds that are not yet269
expended, to a properly operating qualified organization within 30 calendar days of its270
removal from the department's list of qualified organizations.271
(k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount272
of qualified contributions that were utilized as deductions or exemptions from taxable273
income.274
(2) In no event shall the total amount of the tax credit under this Code section for a275
taxable year exceed the taxpayer's income tax liability or such business enterprise's state276
insurance premium tax liability owed pursuant to Code Section 33-8-4. Any unused tax277
credit shall be allowed the taxpayer or business enterprise against the succeeding five278
years' tax liability. No such credit shall be allowed the taxpayer or business enterprise279
against prior years' tax liability.280
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(l) The chairperson of the House Appropriations Committee and the chairperson of the281
Senate Committee on Appropriations shall have the authority to request an audit282
concerning this Code section as a whole or of any one or more qualified organizations. The283
commissioner, the state auditor, each qualified organization, each aging-out program, and284
the director of the division shall cooperate to the full extent necessary to conduct such285
audits.286
(m) At the discretion of the commissioner or the director of the division, any suspected287
misuse of funds contributed or expended pursuant to this Code section shall be forwarded288
to the Attorney General for investigation and prosecution.289
(n) The commissioner shall promulgate rules and regulations necessary to implement and290
administer the provisions of this Code section.291
(o) This Code section shall stand repealed and reserved on December 31, 2029."292
SECTION 2.293
Said chapter is further amended by revising Code Section 48-7-60, relating to confidentiality294
of tax information, exceptions, authorized inspection by certain officials, furnishing295
information to local tax authorities, furnishing information to nonofficials, conditions, and296
effect of Code section, by adding a new subsection to read as follows:297
"(d.1) The commissioner shall be authorized in his or her sole discretion to share298
information necessary to efficiently administer and enforce the provisions of this chapter299
for the purpose of tax credit administration when another state agency has statutory300
authority to administer such tax credits. Any confidential information furnished pursuant301
to this Code section shall retain its character as confidential and privileged information.302
Any person who divulges confidential information obtained pursuant to this Code section303
shall be subject to the same penalties as provided under Code Section 48-7-61 for unlawful304
divulgence of confidential taxpayer information."305
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SECTION 3.306
This Act shall become effective on July 1, 2024, and shall be applicable to all taxable years307
beginning on or after January 1, 2024.308
SECTION 4.309
All laws and parts of laws in conflict with this Act are repealed.310
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