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The House Committee on Ways and Means offers the following substitute to HB 363:
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to1
eligibility to receive tax credits, so as to revise a definition; to amend Article 2 of Chapter2
7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate,3
computation, exemptions, and credits relative to state income taxes, so as to increase the tax4
credit limit for contributions by corporate donors; to increase the aggregate limit for tax5
credits for contributions to rural hospital organizations; to provide for preapproval of6
proportional amounts of contributions under certain circumstances; to provide for certain7
timelines; to extend the sunset provision; to provide for related matters; to provide for an8
effective date 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 freestanding14
emergency department licensed by the department pursuant to Article 1 of Chapter 7 of15
this title that:16
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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
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to39
imposition, rate, computation, exemptions, and credits relative to state income taxes, is40
amended in Code Section 48-7-29.20, relating to tax credits for contributions to rural hospital41
organizations, by revising subsections (b.1), (e), and (k) as follows:42
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"(b.1) From January 1 to June 30 each taxable year, an individual taxpayer shall be limited43
in its qualified rural hospital organization expenses allowable for credit under this Code44
section, and the commissioner shall not approve qualified rural hospital organization45
expenses incurred from January 1 to June 30 each taxable year, which exceed the following46
limits:47
(1) In the case of a single individual or a head of household, $5,000.00;48
(2) In the case of a married couple filing a joint return, $10,000.00; or49
(3) In the case of an individual who is a member of a limited liability company duly50
formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a51
partnership, $10,000.00 $25,000.00."52
"(e)(1) In no event shall the aggregate amount of tax credits allowed under this Code53
section exceed $75 $80 million per taxable year.54
(2)(A) No more than $4 million of the aggregate limit established by paragraph (1) of55
this subsection shall be contributed to any individual rural hospital organization in any56
taxable year. From January 1 to June 30 each taxable year, the commissioner shall only57
preapprove contributions submitted by individual taxpayers in an amount not to exceed58
$2 million, and from corporate donors in an amount not to exceed $2 million. From59
July 1 to December 31 each taxable year, subject to the aggregate limit in paragraph (1)60
of this subsection and the individual rural hospital organization limit in this paragraph,61
the commissioner shall approve contributions submitted by individual taxpayers and62
corporations or other entities.63
(B) In the event an individual or corporate donor desires to make a contribution to an64
individual rural hospital organization that has received the maximum amount of65
contributions for that taxable year, the Department of Community Health shall provide66
the individual or corporate donor with a list, ranked in order of financial need, as67
determined by the Department of Community Health, of rural hospital organizations68
still eligible to receive contributions for the taxable year.69
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(C) In the event an individual or corporate donor desires to make a contribution to an70
individual rural hospital organization that would cause such rural hospital organization71
to exceed its maximum amount of contributions for that year, the commissioner shall72
not deny such desired contribution, but shall approve the proportional amount of the73
desired contribution up to the rural hospital organization's maximum allowed amount74
and any remainder shall be attributed as provided for in subparagraph (D) of this75
paragraph.76
(C)(D) In the event that an individual or corporate donor desires to make a contribution77
to an unspecified or undesignated rural hospital organization, either directly to the78
department or through a third party that participates in soliciting, administering, or79
managing donations, such donation shall be attributed to the rural hospital organization80
ranked with the highest financial need that has not yet received the maximum amount81
of contributions for that taxable year, regardless of whether a third party has a82
contractual relationship or agreement with such rural hospital organization.83
(D)(E) Any third party that participates in soliciting, advertising, or managing84
donations shall provide the complete list of rural hospital organizations eligible to85
receive the tax credit provided pursuant to this Code section including their ranking in86
order of financial need as determined by the Department of Community Health87
pursuant to Code Section 31-8-9.1, to any potential donor regardless of whether a third88
party has a contractual relationship or agreement with such rural hospital organization.89
(3) For purposes of paragraphs (1) and (2) of this subsection, a rural hospital90
organization shall notify a potential donor of the requirements of this Code section. 91
Before making a contribution to a rural hospital organization, the taxpayer shall92
electronically notify the department, in a manner specified by the department, of the total93
amount of contribution that the taxpayer intends to make to the rural hospital94
organization. The commissioner shall preapprove or deny the requested amount or a95
portion of such amount, if applicable pursuant to subparagraph (C) of paragraph (2) of96
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this subsection, within 30 days after receiving the request from the taxpayer and shall97
provide written notice to the taxpayer and rural hospital organization of such preapproval98
or denial which shall not require any signed release or notarized approval by the taxpayer. 99
In order to receive a tax credit under this Code section, the taxpayer shall make the100
contribution to the rural hospital organization within 180 days after receiving notice from101
the department that the requested amount was preapproved. In order to receive a tax102
credit under this Code section, a taxpayer preapproved by the commissioner on or before103
September 30 shall make the contribution to the rural hospital organization within 180104
days after receiving notice of preapproval from the commissioner, but not later than105
October 31. A taxpayer preapproved by the commissioner after September 30 shall make106
the contribution to the rural hospital organization on or before December 31. If the107
taxpayer does not comply with this paragraph, the commissioner shall not include this108
preapproved contribution amount when calculating the limits prescribed in paragraphs109
(1) and (2) of this subsection.110
(4)(A) Preapproval of contributions by the commissioner shall be based solely on the111
availability of tax credits subject to the aggregate total limit established under112
paragraph (1) of this subsection and the individual rural hospital organization limit113
established under paragraph (2) of this subsection.114
(B) Any taxpayer preapproved by the department commissioner pursuant to this115
subsection shall retain their approval in the event the credit percentage in this Code116
section is modified for the year in which the taxpayer was preapproved.117
(C) Upon the rural hospital organization's confirmation of receipt of donations that118
have been preapproved by the department commissioner, any taxpayer preapproved by119
the department commissioner pursuant to subsection (c) of this Code section shall120
receive the full benefit of the income tax credit established by this Code section even121
though the rural hospital organization to which the taxpayer made a donation does not122
properly comply with the reports or filings required by this Code section.123
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(5) Notwithstanding any laws to the contrary, the department shall not take any adverse124
action against donors to rural hospital organizations if the commissioner preapproved a125
donation for a tax credit prior to the date the rural hospital organization is removed from126
the Department of Community Health list pursuant to Code Section 31-8-9.1, and all such127
donations shall remain as preapproved tax credits subject only to the donor's compliance128
with paragraph (3) of this subsection."129
"(k) This Code section shall stand automatically repealed and reserved on December 31,130
2024 2029."131
SECTION 3.132
This Act shall become effective on July 1, 2024, and shall be applicable to taxable years133
beginning on or after January 1, 2024.134
SECTION 4.135
All laws and parts of laws in conflict with this Act are repealed.136
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