23 LC 33 9326
H. B. 363
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House Bill 363
By: Representatives LaHood of the 175
th
, Parrish of the 158
th
, Williams of the 148
th
, Jackson
of the 128
th
, Burchett of the 176
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to
1
eligibility to receive tax credits, so as to revise a definition; to amend Code Section2
48-7-29.20 of the Official Code of Georgia Annotated, relating to tax credits for3
contributions to rural hospital organizations, so as to increase the tax credit limit for4
contributions by corporate donors; to increase the aggregate limit for tax credits for5
contributions to rural hospital organizations; to provide for preapproval of proportional6
amounts of contributions under certain circumstances; to provide for certain timelines; to7
extend the sunset provision; to provide for related matters; to provide for an effective date8
and applicability; to repeal conflicting laws; and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to eligibility to12
receive tax credits, is amended by revising paragraph (3) of subsection (a) as follows:13
"(3) 'Rural hospital organization' means an acute care hospital or rural freestanding
14
emergency department licensed by the department pursuant to Article 1 of Chapter 7 of15
this title that:16 23 LC 33 9326
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(A) Has its primary campus Provides inpatient hospital services at a facility located in17
a rural county or is a critical access hospital;18
(B) Participates in both Medicaid and medicare and accepts both Medicaid and19
medicare patients;20
(C) Provides health care services to indigent patients;21
(D) Has at least 10 percent of its annual net revenue categorized as indigent care,22
charity care, or bad debt;23
(E) Annually files IRS Form 990, Return of Organization Exempt From Income Tax,24
with the department, or for any hospital not required to file IRS Form 990, the25
department will provide a form that collects the same information to be submitted to the26
department on an annual basis;27
(F) Is operated by a county or municipal authority pursuant to Article 4 of Chapter 728
of this title or is designated as a tax-exempt organization under Section 501(c)(3) of the29
Internal Revenue Code;30
(G) Is current with all audits and reports required by law; and31
(H) Has a three-year average patient margin, as a percent of expense, less than one32
standard deviation above the state-wide three-year average of organizations defined in33
subparagraphs (A) through (G) of this paragraph, as calculated by the department. For34
purposes of this subparagraph, the term 'patient margin' means gross patient revenues35
less contractual adjustments, bad debt, indigent and charity care, other uncompensated36
care, and total expenses."37
SECTION 2.38
Code Section 48-7-29.20 of the Official Code of Georgia Annotated, relating to tax credits39
for contributions to rural hospital organizations, is amended by revising subsections (b.1),40
(e), and (k) as follows:41 23 LC 33 9326
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"(b.1) From January 1 to June 30 each taxable year, an individual taxpayer shall be limited
42
in its qualified rural hospital organization expenses allowable for credit under this Code43
section, and the commissioner shall not approve qualified rural hospital organization44
expenses incurred from January 1 to June 30 each taxable year, which exceed the following45
limits:46
(1) In the case of a single individual or a head of household, $5,000.00;47
(2) In the case of a married couple filing a joint return, $10,000.00; or48
(3) In the case of an individual who is a member of a limited liability company duly49
formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a50
partnership, $10,000.00
$25,000.00."51
"(e)(1) In no event shall the aggregate amount of tax credits allowed under this Code52
section exceed $75 $100 million per taxable year.53
(2)(A) No more than $4 million of the aggregate limit established by paragraph (1) of54
this subsection shall be contributed to any individual rural hospital organization in any55
taxable year. From January 1 to June 30 each taxable year, the commissioner shall only56
preapprove contributions submitted by individual taxpayers in an amount not to exceed57
$2 million, and from corporate donors in an amount not to exceed $2 million. From58
July 1 to December 31 each taxable year, subject to the aggregate limit in paragraph (1)59
of this subsection and the individual rural hospital organization limit in this paragraph,60
the commissioner shall approve contributions submitted by individual taxpayers and61
corporations or other entities.62
(B) In the event an individual or corporate donor desires to make a contribution to an63
individual rural hospital organization that has received the maximum amount of64
contributions for that taxable year, the Department of Community Health shall provide65
the individual or corporate donor with a list, ranked in order of financial need, as66
determined by the Department of Community Health, of rural hospital organizations67
still eligible to receive contributions for the taxable year.68 23 LC 33 9326
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(C) In the event an individual or corporate donor desires to make a contribution to an69
individual rural hospital organization that would cause such rural hospital organization70
to exceed its maximum amount of contributions for that taxable year, the Department71
of Community Health shall not deny such desired contribution, but shall approve the72
proportional amount of the desired contribution up to the rural hospital organization's73
maximum allowed amount.74
(C)(D) In the event that an individual or corporate donor desires to make a contribution75
to an unspecified or undesignated rural hospital organization, either directly to the76
department or through a third party that participates in soliciting, administering, or77
managing donations, such donation shall be attributed to the rural hospital organization78
ranked with the highest financial need that has not yet received the maximum amount79
of contributions for that taxable year, regardless of whether a third party has a80
contractual relationship or agreement with such rural hospital organization.81
(D)(E) Any third party that participates in soliciting, advertising, or managing82
donations shall provide the complete list of rural hospital organizations eligible to83
receive the tax credit provided pursuant to this Code section including their ranking in84
order of financial need as determined by the Department of Community Health85
pursuant to Code Section 31-8-9.1, to any potential donor regardless of whether a third86
party has a contractual relationship or agreement with such rural hospital organization.87
(3) For purposes of paragraphs (1) and (2) of this subsection, a rural hospital88
organization shall notify a potential donor of the requirements of this Code section.89
Before making a contribution to a rural hospital organization, the taxpayer shall90
electronically notify the department, in a manner specified by the department, of the total91
amount of contribution that the taxpayer intends to make to the rural hospital92
organization. The commissioner shall preapprove or deny the requested amount or a93
portion of such amount, if applicable pursuant to subparagraph (C) of paragraph (2) of94
this subsection, within 30 days after receiving the request from the taxpayer and shall95 23 LC 33 9326
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provide written notice to the taxpayer and rural hospital organization of such preapproval
96
or denial which shall not require any signed release or notarized approval by the taxpayer.97
In order to receive a tax credit under this Code section, the taxpayer shall make the
98
contribution to the rural hospital organization within 180 days after receiving notice from99
the department that the requested amount was preapproved. In order to receive a tax100
credit under this Code section, a taxpayer preapproved by the department on or before101
September 30 shall make the contribution to the rural hospital organization within 180102
days after receiving notice of preapproval from the department, but not later than October103
31. A taxpayer preapproved by the department after September 30 shall make the104
contribution to the rural hospital organization on or before December 31. If the taxpayer105
does not comply with this paragraph, the commissioner shall not include this preapproved106
contribution amount when calculating the limits prescribed in paragraphs (1) and (2) of107
this subsection.108
(4)(A) Preapproval of contributions by the commissioner shall be based solely on the109
availability of tax credits subject to the aggregate total limit established under110
paragraph (1) of this subsection and the individual rural hospital organization limit111
established under paragraph (2) of this subsection.112
(B) Any taxpayer preapproved by the department pursuant to this subsection shall113
retain their approval in the event the credit percentage in this Code section is modified114
for the year in which the taxpayer was preapproved.115
(C) Upon the rural hospital organization's confirmation of receipt of donations that116
have been preapproved by the department, any taxpayer preapproved by the department117
pursuant to subsection (c) of this Code section shall receive the full benefit of the118
income tax credit established by this Code section even though the rural hospital119
organization to which the taxpayer made a donation does not properly comply with the120
reports or filings required by this Code section.121 23 LC 33 9326
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(5) Notwithstanding any laws to the contrary, the department shall not take any adverse
122
action against donors to rural hospital organizations if the commissioner preapproved a123
donation for a tax credit prior to the date the rural hospital organization is removed from124
the Department of Community Health list pursuant to Code Section 31-8-9.1, and all such125
donations shall remain as preapproved tax credits subject only to the donor's compliance126
with paragraph (3) of this subsection."127
"(k) This Code section shall stand automatically repealed on December 31, 2024
2029."128
SECTION 3.129
This Act shall become effective on July 1, 2023, and shall be applicable to taxable years130
beginning on or after January 1, 2023.131
SECTION 4.132
All laws and parts of laws in conflict with this Act are repealed.133