Georgia 2023-2024 Regular Session

Georgia House Bill HB363 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	24 LC 50 0706S
2		-	The House Committee on Ways and Means offers the following substitute to HB 363:
	1	+	23 LC 33 9326
	2	+	H. B. 363
	3	+	- 1 -
	4	+	House Bill 363
	5	+	By: Representatives LaHood of the 175
	6	+	th
	7	+	, Parrish of the 158
	8	+	th
	9	+	, Williams of the 148
	10	+	th
	11	+	, Jackson
	12	+	of the 128
	13	+	th
	14	+	, Burchett of the 176
	15	+	th
	16	+	, and others
3	17		A BILL TO BE ENTITLED
4	18		AN ACT
5		-	To amend Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to1
6		-	eligibility to receive tax credits, so as to revise a definition; to amend Article 2 of Chapter2
7		-	7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate,3
8		-	computation, exemptions, and credits relative to state income taxes, so as to increase the tax4
9		-	credit limit for contributions by corporate donors; to increase the aggregate limit for tax5
10		-	credits for contributions to rural hospital organizations; to provide for preapproval of6
11		-	proportional amounts of contributions under certain circumstances; to provide for certain7
12		-	timelines; to extend the sunset provision; to provide for related matters; to provide for an8
13		-	effective date and applicability; to repeal conflicting laws; and for other purposes.9
	19	+	To amend Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to
	20	+	1
	21	+	eligibility to receive tax credits, so as to revise a definition; to amend Code Section2
	22	+	48-7-29.20 of the Official Code of Georgia Annotated, relating to tax credits for3
	23	+	contributions to rural hospital organizations, so as to increase the tax credit limit for4
	24	+	contributions by corporate donors; to increase the aggregate limit for tax credits for5
	25	+	contributions to rural hospital organizations; to provide for preapproval of proportional6
	26	+	amounts of contributions under certain circumstances; to provide for certain timelines; to7
	27	+	extend the sunset provision; to provide for related matters; to provide for an effective date8
	28	+	and applicability; to repeal conflicting laws; and for other purposes.9
14	29		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
15	30		SECTION 1.11
16	31		Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to eligibility to12
17	32		receive tax credits, is amended by revising paragraph (3) of subsection (a) as follows:13
18		-	"(3) 'Rural hospital organization' means an acute care hospital or rural freestanding14
	33	+	"(3) 'Rural hospital organization' means an acute care hospital or rural freestanding
	34	+	14
19	35		emergency department licensed by the department pursuant to Article 1 of Chapter 7 of15
20		-	this title that:16
21		-	H. B. 363 ~~(SUB)~~
22		-	- ~~1 - 24 LC 50 0706S~~
	36	+	this title that:16 23 LC 33 9326
	37	+	H. B. 363
	38	+	- 2 -
23	39		(A) Has its primary campus Provides inpatient hospital services at a facility located in17
24	40		a rural county or is a critical access hospital;18
25	41		(B) Participates in both Medicaid and medicare and accepts both Medicaid and19
26	42		medicare patients;20
27	43		(C) Provides health care services to indigent patients;21
28	44		(D) Has at least 10 percent of its annual net revenue categorized as indigent care,22
29	45		charity care, or bad debt;23
30	46		(E) Annually files IRS Form 990, Return of Organization Exempt From Income Tax,24
31	47		with the department, or for any hospital not required to file IRS Form 990, the25
32	48		department will provide a form that collects the same information to be submitted to the26
33	49		department on an annual basis;27
34	50		(F) Is operated by a county or municipal authority pursuant to Article 4 of Chapter 728
35	51		of this title or is designated as a tax-exempt organization under Section 501(c)(3) of the29
36	52		Internal Revenue Code;30
37	53		(G) Is current with all audits and reports required by law; and31
38	54		(H) Has a three-year average patient margin, as a percent of expense, less than one32
39	55		standard deviation above the state-wide three-year average of organizations defined in33
40	56		subparagraphs (A) through (G) of this paragraph, as calculated by the department. For34
41	57		purposes of this subparagraph, the term 'patient margin' means gross patient revenues35
42	58		less contractual adjustments, bad debt, indigent and charity care, other uncompensated36
43	59		care, and total expenses."37
44	60		SECTION 2.38
45		-	Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to39
46		-	imposition, rate, computation, exemptions, and credits relative to state income taxes, is40
47		-	amended in Code Section 48-7-29.20, relating to tax credits for contributions to rural hospital41
48		-	organizations, by revising subsections (b.1), (e), and (k) as follows:42
49		-	H. B. 363 (SUB)
50		-	- 2 - 24 LC 50 0706S
51		-	"(b.1) From January 1 to June 30 each taxable year, an individual taxpayer shall be limited43
52		-	in its qualified rural hospital organization expenses allowable for credit under this Code44
53		-	section, and the commissioner shall not approve qualified rural hospital organization45
54		-	expenses incurred from January 1 to June 30 each taxable year, which exceed the following46
55		-	limits:47
56		-	(1) In the case of a single individual or a head of household, $5,000.00;48
57		-	(2) In the case of a married couple filing a joint return, $10,000.00; or49
58		-	(3) In the case of an individual who is a member of a limited liability company duly50
59		-	formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a51
60		-	partnership, $10,000.00 $25,000.00."52
61		-	"(e)(1) In no event shall the aggregate amount of tax credits allowed under this Code53
62		-	section exceed $75 $80 million per taxable year.54
63		-	(2)(A) No more than $4 million of the aggregate limit established by paragraph (1) of55
64		-	this subsection shall be contributed to any individual rural hospital organization in any56
65		-	taxable year. From January 1 to June 30 each taxable year, the commissioner shall only57
66		-	preapprove contributions submitted by individual taxpayers in an amount not to exceed58
67		-	$2 million, and from corporate donors in an amount not to exceed $2 million. From59
68		-	July 1 to December 31 each taxable year, subject to the aggregate limit in paragraph (1)60
69		-	of this subsection and the individual rural hospital organization limit in this paragraph,61
70		-	the commissioner shall approve contributions submitted by individual taxpayers and62
71		-	corporations or other entities.63
72		-	(B) In the event an individual or corporate donor desires to make a contribution to an64
73		-	individual rural hospital organization that has received the maximum amount of65
74		-	contributions for that taxable year, the Department of Community Health shall provide66
75		-	the individual or corporate donor with a list, ranked in order of financial need, as67
76		-	determined by the Department of Community Health, of rural hospital organizations68
77		-	still eligible to receive contributions for the taxable year.69
78		-	H. B. 363 (SUB)
79		-	- 3 - 24 LC 50 0706S
80		-	(C) In the event an individual or corporate donor desires to make a contribution to an70
81		-	individual rural hospital organization that would cause such rural hospital organization71
82		-	to exceed its maximum amount of contributions for that year, the commissioner shall72
83		-	not deny such desired contribution, but shall approve the proportional amount of the73
84		-	desired contribution up to the rural hospital organization's maximum allowed amount74
85		-	and any remainder shall be attributed as provided for in subparagraph (D) of this75
86		-	paragraph.76
87		-	(C)(D) In the event that an individual or corporate donor desires to make a contribution77
88		-	to an unspecified or undesignated rural hospital organization, either directly to the78
89		-	department or through a third party that participates in soliciting, administering, or79
90		-	managing donations, such donation shall be attributed to the rural hospital organization80
91		-	ranked with the highest financial need that has not yet received the maximum amount81
92		-	of contributions for that taxable year, regardless of whether a third party has a82
93		-	contractual relationship or agreement with such rural hospital organization.83
94		-	(D)(E) Any third party that participates in soliciting, advertising, or managing84
95		-	donations shall provide the complete list of rural hospital organizations eligible to85
96		-	receive the tax credit provided pursuant to this Code section including their ranking in86
97		-	order of financial need as determined by the Department of Community Health87
98		-	pursuant to Code Section 31-8-9.1, to any potential donor regardless of whether a third88
99		-	party has a contractual relationship or agreement with such rural hospital organization.89
100		-	(3) For purposes of paragraphs (1) and (2) of this subsection, a rural hospital90
101		-	organization shall notify a potential donor of the requirements of this Code section. 91
102		-	Before making a contribution to a rural hospital organization, the taxpayer shall92
103		-	electronically notify the department, in a manner specified by the department, of the total93
104		-	amount of contribution that the taxpayer intends to make to the rural hospital94
105		-	organization. The commissioner shall preapprove or deny the requested amount or a95
106		-	portion of such amount, if applicable pursuant to subparagraph (C) of paragraph (2) of96
107		-	H. B. 363 (SUB)
108		-	- 4 - 24 LC 50 0706S
109		-	this subsection, within 30 days after receiving the request from the taxpayer and shall97
110		-	provide written notice to the taxpayer and rural hospital organization of such preapproval98
111		-	or denial which shall not require any signed release or notarized approval by the taxpayer. 99
112		-	In order to receive a tax credit under this Code section, the taxpayer shall make the100
113		-	contribution to the rural hospital organization within 180 days after receiving notice from101
114		-	the department that the requested amount was preapproved. In order to receive a tax102
115		-	credit under this Code section, a taxpayer preapproved by the commissioner on or before103
116		-	September 30 shall make the contribution to the rural hospital organization within 180104
117		-	days after receiving notice of preapproval from the commissioner, but not later than105
118		-	October 31. A taxpayer preapproved by the commissioner after September 30 shall make106
119		-	the contribution to the rural hospital organization on or before December 31. If the107
120		-	taxpayer does not comply with this paragraph, the commissioner shall not include this108
121		-	preapproved contribution amount when calculating the limits prescribed in paragraphs109
122		-	(1) and (2) of this subsection.110
123		-	(4)(A) Preapproval of contributions by the commissioner shall be based solely on the111
124		-	availability of tax credits subject to the aggregate total limit established under112
125		-	paragraph (1) of this subsection and the individual rural hospital organization limit113
126		-	established under paragraph (2) of this subsection.114
127		-	(B) Any taxpayer preapproved by the department commissioner pursuant to this115
128		-	subsection shall retain their approval in the event the credit percentage in this Code116
129		-	section is modified for the year in which the taxpayer was preapproved.117
130		-	(C) Upon the rural hospital organization's confirmation of receipt of donations that118
131		-	have been preapproved by the department commissioner, any taxpayer preapproved by119
132		-	the department commissioner pursuant to subsection (c) of this Code section shall120
133		-	receive the full benefit of the income tax credit established by this Code section even121
134		-	though the rural hospital organization to which the taxpayer made a donation does not122
135		-	properly comply with the reports or filings required by this Code section.123
136		-	H. B. 363 (SUB)
137		-	- 5 - 24 LC 50 0706S
138		-	(5) Notwithstanding any laws to the contrary, the department shall not take any adverse124
139		-	action against donors to rural hospital organizations if the commissioner preapproved a125
140		-	donation for a tax credit prior to the date the rural hospital organization is removed from126
141		-	the Department of Community Health list pursuant to Code Section 31-8-9.1, and all such127
142		-	donations shall remain as preapproved tax credits subject only to the donor's compliance128
143		-	with paragraph (3) of this subsection."129
144		-	"(k) This Code section shall stand automatically repealed and reserved on December 31,130
145		-	2024 2029."131
146		-	SECTION 3.132
147		-	This Act shall become effective on July 1, 2024, and shall be applicable to taxable years133
148		-	beginning on or after January 1, 2024.134
149		-	SECTION 4.135
150		-	All laws and parts of laws in conflict with this Act are repealed.136
151		-	H. B. 363 (SUB)
	61	+	Code Section 48-7-29.20 of the Official Code of Georgia Annotated, relating to tax credits39
	62	+	for contributions to rural hospital organizations, is amended by revising subsections (b.1),40
	63	+	(e), and (k) as follows:41 23 LC 33 9326
	64	+	H. B. 363
	65	+	- 3 -
	66	+	"(b.1) From January 1 to June 30 each taxable year, an individual taxpayer shall be limited
	67	+	42
	68	+	in its qualified rural hospital organization expenses allowable for credit under this Code43
	69	+	section, and the commissioner shall not approve qualified rural hospital organization44
	70	+	expenses incurred from January 1 to June 30 each taxable year, which exceed the following45
	71	+	limits:46
	72	+	(1) In the case of a single individual or a head of household, $5,000.00;47
	73	+	(2) In the case of a married couple filing a joint return, $10,000.00; or48
	74	+	(3) In the case of an individual who is a member of a limited liability company duly49
	75	+	formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a50
	76	+	partnership, $10,000.00
	77	+	$25,000.00."51
	78	+	"(e)(1) In no event shall the aggregate amount of tax credits allowed under this Code52
	79	+	section exceed $75 $100 million per taxable year.53
	80	+	(2)(A) No more than $4 million of the aggregate limit established by paragraph (1) of54
	81	+	this subsection shall be contributed to any individual rural hospital organization in any55
	82	+	taxable year. From January 1 to June 30 each taxable year, the commissioner shall only56
	83	+	preapprove contributions submitted by individual taxpayers in an amount not to exceed57
	84	+	$2 million, and from corporate donors in an amount not to exceed $2 million. From58
	85	+	July 1 to December 31 each taxable year, subject to the aggregate limit in paragraph (1)59
	86	+	of this subsection and the individual rural hospital organization limit in this paragraph,60
	87	+	the commissioner shall approve contributions submitted by individual taxpayers and61
	88	+	corporations or other entities.62
	89	+	(B) In the event an individual or corporate donor desires to make a contribution to an63
	90	+	individual rural hospital organization that has received the maximum amount of64
	91	+	contributions for that taxable year, the Department of Community Health shall provide65
	92	+	the individual or corporate donor with a list, ranked in order of financial need, as66
	93	+	determined by the Department of Community Health, of rural hospital organizations67
	94	+	still eligible to receive contributions for the taxable year.68 23 LC 33 9326
	95	+	H. B. 363
	96	+	- 4 -
	97	+	(C) In the event an individual or corporate donor desires to make a contribution to an69
	98	+	individual rural hospital organization that would cause such rural hospital organization70
	99	+	to exceed its maximum amount of contributions for that taxable year, the Department71
	100	+	of Community Health shall not deny such desired contribution, but shall approve the72
	101	+	proportional amount of the desired contribution up to the rural hospital organization's73
	102	+	maximum allowed amount.74
	103	+	(C)(D) In the event that an individual or corporate donor desires to make a contribution75
	104	+	to an unspecified or undesignated rural hospital organization, either directly to the76
	105	+	department or through a third party that participates in soliciting, administering, or77
	106	+	managing donations, such donation shall be attributed to the rural hospital organization78
	107	+	ranked with the highest financial need that has not yet received the maximum amount79
	108	+	of contributions for that taxable year, regardless of whether a third party has a80
	109	+	contractual relationship or agreement with such rural hospital organization.81
	110	+	(D)(E) Any third party that participates in soliciting, advertising, or managing82
	111	+	donations shall provide the complete list of rural hospital organizations eligible to83
	112	+	receive the tax credit provided pursuant to this Code section including their ranking in84
	113	+	order of financial need as determined by the Department of Community Health85
	114	+	pursuant to Code Section 31-8-9.1, to any potential donor regardless of whether a third86
	115	+	party has a contractual relationship or agreement with such rural hospital organization.87
	116	+	(3) For purposes of paragraphs (1) and (2) of this subsection, a rural hospital88
	117	+	organization shall notify a potential donor of the requirements of this Code section.89
	118	+	Before making a contribution to a rural hospital organization, the taxpayer shall90
	119	+	electronically notify the department, in a manner specified by the department, of the total91
	120	+	amount of contribution that the taxpayer intends to make to the rural hospital92
	121	+	organization. The commissioner shall preapprove or deny the requested amount or a93
	122	+	portion of such amount, if applicable pursuant to subparagraph (C) of paragraph (2) of94
	123	+	this subsection, within 30 days after receiving the request from the taxpayer and shall95 23 LC 33 9326
	124	+	H. B. 363
	125	+	- 5 -
	126	+	provide written notice to the taxpayer and rural hospital organization of such preapproval
	127	+	96
	128	+	or denial which shall not require any signed release or notarized approval by the taxpayer.97
	129	+	In order to receive a tax credit under this Code section, the taxpayer shall make the
	130	+	98
	131	+	contribution to the rural hospital organization within 180 days after receiving notice from99
	132	+	the department that the requested amount was preapproved. In order to receive a tax100
	133	+	credit under this Code section, a taxpayer preapproved by the department on or before101
	134	+	September 30 shall make the contribution to the rural hospital organization within 180102
	135	+	days after receiving notice of preapproval from the department, but not later than October103
	136	+	31. A taxpayer preapproved by the department after September 30 shall make the104
	137	+	contribution to the rural hospital organization on or before December 31. If the taxpayer105
	138	+	does not comply with this paragraph, the commissioner shall not include this preapproved106
	139	+	contribution amount when calculating the limits prescribed in paragraphs (1) and (2) of107
	140	+	this subsection.108
	141	+	(4)(A) Preapproval of contributions by the commissioner shall be based solely on the109
	142	+	availability of tax credits subject to the aggregate total limit established under110
	143	+	paragraph (1) of this subsection and the individual rural hospital organization limit111
	144	+	established under paragraph (2) of this subsection.112
	145	+	(B) Any taxpayer preapproved by the department pursuant to this subsection shall113
	146	+	retain their approval in the event the credit percentage in this Code section is modified114
	147	+	for the year in which the taxpayer was preapproved.115
	148	+	(C) Upon the rural hospital organization's confirmation of receipt of donations that116
	149	+	have been preapproved by the department, any taxpayer preapproved by the department117
	150	+	pursuant to subsection (c) of this Code section shall receive the full benefit of the118
	151	+	income tax credit established by this Code section even though the rural hospital119
	152	+	organization to which the taxpayer made a donation does not properly comply with the120
	153	+	reports or filings required by this Code section.121 23 LC 33 9326
	154	+	H. B. 363
152	155		- 6 -
	156	+	(5) Notwithstanding any laws to the contrary, the department shall not take any adverse
	157	+	122
	158	+	action against donors to rural hospital organizations if the commissioner preapproved a123
	159	+	donation for a tax credit prior to the date the rural hospital organization is removed from124
	160	+	the Department of Community Health list pursuant to Code Section 31-8-9.1, and all such125
	161	+	donations shall remain as preapproved tax credits subject only to the donor's compliance126
	162	+	with paragraph (3) of this subsection."127
	163	+	"(k) This Code section shall stand automatically repealed on December 31, 2024
	164	+	2029."128
	165	+	SECTION 3.129
	166	+	This Act shall become effective on July 1, 2023, and shall be applicable to taxable years130
	167	+	beginning on or after January 1, 2023.131
	168	+	SECTION 4.132
	169	+	All laws and parts of laws in conflict with this Act are repealed.133