| 1 | 1 | | 23 LC 43 2688 |
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| 2 | 2 | | H. B. 488 |
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| 3 | 3 | | - 1 - |
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| 4 | 4 | | House Bill 488 |
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| 5 | 5 | | By: Representatives Reeves of the 99 |
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| 6 | 6 | | th |
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| 7 | 7 | | , Daniel of the 117 |
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| 8 | 8 | | th |
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| 9 | 9 | | , Hilton of the 48 |
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| 10 | 10 | | th |
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| 11 | 11 | | , Washburn of |
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| 12 | 12 | | the 144 |
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| 13 | 13 | | th |
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| 14 | 14 | | , Frye of the 122 |
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| 15 | 15 | | nd |
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| 16 | 16 | | , and others |
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| 17 | 17 | | A BILL TO BE ENTITLED |
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| 18 | 18 | | AN ACT |
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| 19 | 19 | | To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to |
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| 20 | 20 | | 1 |
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| 21 | 21 | | income taxes, so as to provide for tax credits for certain contributions made by taxpayers to2 |
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| 22 | 22 | | certain mortgage loan originators; to provide for definitions; to provide for an aggregate3 |
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| 23 | 23 | | annual limit; to provide for terms and conditions; to provide for applications and4 |
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| 24 | 24 | | certifications; to provide for the revocation of qualified status; to provide for certain5 |
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| 25 | 25 | | penalties; to provide for the promulgation of rules and regulations; to provide for related6 |
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| 26 | 26 | | matters; to provide for a short title; to provide for an effective date and applicability; to7 |
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| 27 | 27 | | repeal conflicting laws; and for other purposes.8 |
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| 28 | 28 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 |
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| 29 | 29 | | SECTION 1.10 |
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| 30 | 30 | | This Act shall be known and may be cited as the "American Dream Workforce Housing Tax11 |
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| 31 | 31 | | Credit."12 |
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| 32 | 32 | | SECTION 2.13 |
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| 33 | 33 | | Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,14 |
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| 34 | 34 | | is amended by adding a new Code section to read as follows:15 23 LC 43 2688 |
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| 35 | 35 | | H. B. 488 |
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| 36 | 36 | | - 2 - |
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| 37 | 37 | | "48-7-29.26.16 |
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| 38 | 38 | | (a) As used in this Code section, the term:17 |
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| 39 | 39 | | (1) 'Mortgage loan originator' means an individual who for compensation or gain or in18 |
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| 40 | 40 | | the expectation of compensation or gain takes a residential mortgage loan application or19 |
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| 41 | 41 | | offers or negotiates terms of a residential mortgage loan. Generally, this does not include20 |
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| 42 | 42 | | an individual engaged solely as a loan processor or underwriter except as otherwise21 |
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| 43 | 43 | | provided in subsection (a.1) of Code Section 7-1-1002; a person or entity that only22 |
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| 44 | 44 | | performs real estate brokerage activities and is licensed or registered in accordance with23 |
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| 45 | 45 | | Georgia law unless the person or entity is compensated by a mortgage lender, mortgage24 |
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| 46 | 46 | | broker, or other mortgage loan originator or by any agent of such mortgage lender,25 |
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| 47 | 47 | | mortgage broker, or other mortgage loan originator; and does not include a person or26 |
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| 48 | 48 | | entity solely involved in extensions of credit relating to time-share plans, as that term is27 |
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| 49 | 49 | | defined in 11 U.S.C. Section 101(53D).28 |
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| 50 | 50 | | (2) 'Qualified mortgage loan originator' means any nonprofit corporation that:29 |
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| 51 | 51 | | (A) Acts as a mortgage loan originator to make mortgage loans to individuals to30 |
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| 52 | 52 | | promote home ownership or improvements for the disadvantaged;31 |
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| 53 | 53 | | (B) Maintains its status of a tax-exempt organization under Section 501(c)(3) of the32 |
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| 54 | 54 | | Internal Revenue Code of 1986;33 |
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| 55 | 55 | | (C) Promotes affordable housing;34 |
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| 56 | 56 | | (D) Conducts its activities in a manner that serves public or charitable purposes, rather35 |
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| 57 | 57 | | than commercial purposes;36 |
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| 58 | 58 | | (E) Receives funding and revenue and charges fees in a manner that does not37 |
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| 59 | 59 | | incentivize it or its employees to act other than in the best interests of its clients;38 |
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| 60 | 60 | | (F) Compensates its employees in a manner that does not incentivize employees to act39 |
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| 61 | 61 | | other than in the best interests of its clients;40 |
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| 62 | 62 | | (G) Provides or identifies for the borrower mortgage loans with terms favorable to the41 |
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| 63 | 63 | | borrower and comparable to mortgage loans and housing assistance provided under42 23 LC 43 2688 |
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| 64 | 64 | | H. B. 488 |
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| 65 | 65 | | - 3 - |
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| 66 | 66 | | government housing assistance programs. The department shall determine whether43 |
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| 67 | 67 | | mortgage loans have terms that are favorable to the borrower, if such loans are44 |
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| 68 | 68 | | consistent with loan origination in a public or charitable context, rather than in a45 |
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| 69 | 69 | | commercial context; and46 |
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| 70 | 70 | | (H) Is exempt from licensure as a mortgage loan originator pursuant to paragraph (13)47 |
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| 71 | 71 | | of subsection (a) of Code Section 7-1-1001.48 |
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| 72 | 72 | | (b)(1) The aggregate amount of tax credits allowed under this Code section shall not49 |
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| 73 | 73 | | exceed $20 million per calendar year. Each qualified mortgage loan originator shall be50 |
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| 74 | 74 | | limited to accepting $2 million per year of contributions made under this Code section.51 |
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| 75 | 75 | | (2) Subject to the aggregate limit provided in paragraph (1) of this subsection, from52 |
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| 76 | 76 | | January 1, 2024, through December 31, 2028, each taxpayer shall be allowed a credit53 |
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| 77 | 77 | | against the tax imposed by this chapter for qualified contributions made by the taxpayer54 |
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| 78 | 78 | | on or after January 1, 2024, as follows:55 |
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| 79 | 79 | | (A) In the case of a single individual or a head of household, the actual amount of56 |
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| 80 | 80 | | qualified contributions made or $5,000.00 per year, whichever is less;57 |
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| 81 | 81 | | (B) In the case of a married couple filing a joint return, the actual amount of qualified58 |
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| 82 | 82 | | contributions made or $10,000.00 per year, whichever is less;59 |
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| 83 | 83 | | (C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph60 |
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| 84 | 84 | | notwithstanding, in the case of an individual taxpayer who is a member of a limited61 |
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| 85 | 85 | | liability company duly formed under state law, a shareholder of a Subchapter 'S'62 |
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| 86 | 86 | | corporation, or a partner in a partnership, the actual amount of qualified contributions63 |
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| 87 | 87 | | it made or $10,000.00, whichever is less; provided, however, that tax credits pursuant64 |
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| 88 | 88 | | to this paragraph shall only be allowed for the portion of the income on which such tax65 |
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| 89 | 89 | | was actually paid by such member of the limited liability company, shareholder of a66 |
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| 90 | 90 | | Subchapter 'S' corporation, or partner in a partnership; or67 |
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| 91 | 91 | | (D) A corporation or other entity not provided for in subparagraphs (A) through (C)68 |
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| 92 | 92 | | of this paragraph shall be allowed a credit against the tax imposed by this chapter, for69 23 LC 43 2688 |
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| 93 | 93 | | H. B. 488 |
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| 94 | 94 | | - 4 - |
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| 95 | 95 | | qualified contributions in an amount not to exceed the actual amount of qualified70 |
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| 96 | 96 | | contributions made or 75 percent of such corporation's or other entity's income tax71 |
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| 97 | 97 | | liability, whichever is less.72 |
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| 98 | 98 | | (3) Nothing in this Code section shall be construed to limit the ability of a qualified73 |
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| 99 | 99 | | mortgage loan originator to receive gifts, grants, and other benefits from any source74 |
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| 100 | 100 | | allowed by law; provided, however, that no qualified mortgage loan originator shall,75 |
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| 101 | 101 | | under this Code section, accept or receive more than $2 million in contributions in any76 |
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| 102 | 102 | | calendar year.77 |
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| 103 | 103 | | (c) The commissioner shall establish a page on the department's website for the purpose78 |
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| 104 | 104 | | of implementing this Code section. Such page shall contain, at a minimum:79 |
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| 105 | 105 | | (1) The application and requirements for certification as a qualified mortgage loan80 |
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| 106 | 106 | | originator;81 |
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| 107 | 107 | | (2) The current list of all qualified mortgage loan originators;82 |
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| 108 | 108 | | (3) The total amount of tax credits remaining and available for preapproval for each year;83 |
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| 109 | 109 | | (4) A web based method for taxpayers seeking the preapproval status for contributions;84 |
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| 110 | 110 | | and85 |
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| 111 | 111 | | (5) The information received by the department from each qualified organization86 |
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| 112 | 112 | | pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv) of this Code87 |
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| 113 | 113 | | section.88 |
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| 114 | 114 | | (d) Any valid qualified mortgage loan originator as a qualified mortgage loan originator89 |
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| 115 | 115 | | shall be certified by the commissioner following the commissioner's receipt of a properly90 |
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| 116 | 116 | | completed application and after the commissioner has confirmed that a single qualified91 |
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| 117 | 117 | | mortgage loan originator has validly designated the applicant as its sole qualified mortgage92 |
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| 118 | 118 | | loan originator. Such application created by the division shall include an agreement93 |
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| 119 | 119 | | submitted by the applicant to fully comply with the terms and conditions of this Code94 |
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| 120 | 120 | | section.95 23 LC 43 2688 |
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| 121 | 121 | | H. B. 488 |
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| 122 | 122 | | - 5 - |
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| 123 | 123 | | (e)(1) Prior to making a contribution to any qualified organization, the taxpayer shall96 |
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| 124 | 124 | | electronically notify the department, in a manner specified by the commissioner, of the97 |
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| 125 | 125 | | total amount of contribution that such taxpayer intends to make to such qualified98 |
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| 126 | 126 | | mortgage loan originator.99 |
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| 127 | 127 | | (2) Within 30 days after receiving a request for preapproval of contributions, the100 |
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| 128 | 128 | | commissioner shall preapprove, deny, or prorate requested amounts on a first come, first101 |
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| 129 | 129 | | served basis and shall provide notice to such taxpayer and the qualified organization of102 |
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| 130 | 130 | | such preapproval, denial, or proration. Such notices shall not require any signed release103 |
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| 131 | 131 | | or notarized approval by the taxpayer. The preapproval of contributions by the104 |
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| 132 | 132 | | commissioner shall be based solely on the availability of tax credits subject to the105 |
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| 133 | 133 | | aggregate total limit established under paragraph (1) of subsection (b) of this Code106 |
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| 134 | 134 | | section.107 |
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| 135 | 135 | | (3) Within 60 days after receiving the preapproval notice issued by the commissioner108 |
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| 136 | 136 | | pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved109 |
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| 137 | 137 | | amount to the qualified mortgage loan originator or such preapproved contribution110 |
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| 138 | 138 | | amount shall expire. The commissioner shall not include such expired amounts in111 |
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| 139 | 139 | | determining the remaining amount available under the aggregate limit for the respective112 |
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| 140 | 140 | | calendar year.113 |
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| 141 | 141 | | (f)(1) Each qualified mortgage loan originator shall issue to each contributor a letter of114 |
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| 142 | 142 | | confirmation of contribution, which shall include the taxpayer's name, address, tax115 |
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| 143 | 143 | | identification number, the amount of the qualified contribution, the date of the qualified116 |
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| 144 | 144 | | contribution, and the total amount of the credit allowed to the taxpayer.117 |
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| 145 | 145 | | (2) In order for a taxpayer to claim the tax credit allowed under this Code section, all118 |
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| 146 | 146 | | such applicable letters as provided for in paragraph (1) of this subsection shall be attached119 |
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| 147 | 147 | | to the taxpayer's tax return. When the taxpayer files an electronic return such120 |
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| 148 | 148 | | confirmation shall only be required to be electronically attached to the return if the121 |
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| 149 | 149 | | Internal Revenue Service allows such attachments to be affixed and transmitted to the122 23 LC 43 2688 |
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| 150 | 150 | | H. B. 488 |
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| 151 | 151 | | - 6 - |
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| 152 | 152 | | department. In any such event, the taxpayer shall maintain such confirmation and such123 |
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| 153 | 153 | | confirmation shall only be made available to the commissioner upon request.124 |
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| 154 | 154 | | (3) The commissioner shall allow tax credits for any preapproved contributions made to125 |
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| 155 | 155 | | a mortgage loan originator, if at the time the contributions were made, such mortgage126 |
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| 156 | 156 | | loan originator was a qualified mortgage loan originator at the time of the commissioner's127 |
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| 157 | 157 | | preapproval of the contributions and the taxpayer has otherwise complied with this Code128 |
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| 158 | 158 | | section.129 |
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| 159 | 159 | | (g)(1) Each qualified mortgage loan originator shall annually submit to the department130 |
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| 160 | 160 | | no later than May 15 of each year:131 |
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| 161 | 161 | | (A) A complete copy of its IRS Form 990 including applicable attachments, or for any132 |
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| 162 | 162 | | qualified mortgage originator that is not required by federal law to file an IRS Form133 |
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| 163 | 163 | | 990, such mortgage originator shall submit to the commissioner equivalent information134 |
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| 164 | 164 | | on a form prescribed by the commissioner; and135 |
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| 165 | 165 | | (B) A report detailing the contributions received during the calendar year pursuant to136 |
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| 166 | 166 | | this Code section on a date determined by, and on a form provided by, the137 |
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| 167 | 167 | | commissioner which shall include:138 |
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| 168 | 168 | | (i) The total number and dollar value of individual contributions and tax credits139 |
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| 169 | 169 | | approved. Individual contributions shall include contributions made by those filing140 |
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| 170 | 170 | | income tax returns as a single individual or head of household and those filing joint141 |
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| 171 | 171 | | returns;142 |
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| 172 | 172 | | (ii) The total number and dollar value of corporate contributions and tax credits143 |
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| 173 | 173 | | approved;144 |
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| 174 | 174 | | (iii) The total number and dollar value of all qualified expenditures made; and145 |
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| 175 | 175 | | (iv) A list of contributors, including the dollar value of each contribution and the146 |
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| 176 | 176 | | dollar value of each approved tax credit.147 |
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| 177 | 177 | | (2) Except for the information published in accordance with subsection (c) of this Code148 |
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| 178 | 178 | | section, all information or reports relative to this Code section that were provided by149 23 LC 43 2688 |
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| 179 | 179 | | H. B. 488 |
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| 180 | 180 | | - 7 - |
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| 181 | 181 | | mortgage loan originators to the department shall be confidential taxpayer information,150 |
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| 182 | 182 | | governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such information151 |
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| 183 | 183 | | relates to the contributor or the mortgage loan originator.152 |
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| 184 | 184 | | (h) Each qualified mortgage loan originator shall publicly post on its website a copy of its153 |
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| 185 | 185 | | affiliated mortgage loan originator's prior year's annual budget containing the total amount154 |
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| 186 | 186 | | of funds received for its local governing body. If a qualified mortgage loan originator does155 |
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| 187 | 187 | | not maintain a public website, such information shall be otherwise made available by the156 |
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| 188 | 188 | | qualified mortgage loan originator to the public upon request.157 |
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| 189 | 189 | | (i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified158 |
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| 190 | 190 | | contributions to any particular purpose or for the direct benefit of any particular159 |
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| 191 | 191 | | individual.160 |
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| 192 | 192 | | (2) A taxpayer that operates, owns, or is a subsidiary of an association, organization, or161 |
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| 193 | 193 | | other entity that contracts directly with a qualified organization shall not be eligible for162 |
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| 194 | 194 | | tax credits allowed under this Code section for contributions made to such qualified163 |
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| 195 | 195 | | mortgage loan originator.164 |
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| 196 | 196 | | (3) In soliciting contributions, no person shall represent or direct that, in exchange for165 |
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| 197 | 197 | | making qualified contributions to any qualified mortgage loan originator, a taxpayer shall166 |
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| 198 | 198 | | receive any direct or particular benefit. The status as a qualified mortgage loan originator167 |
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| 199 | 199 | | shall be revoked for any qualified organization determined to be in violation of this168 |
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| 200 | 200 | | paragraph and shall not be renewed for at least two years.169 |
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| 201 | 201 | | (j)(1) Qualified contributions shall only be used to make qualified expenditures. Each170 |
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| 202 | 202 | | qualified organization shall maintain accurate and current records of all expenditures of171 |
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| 203 | 203 | | such funds and provide such records to the commissioner upon his or her request.172 |
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| 204 | 204 | | (2) A qualified mortgage loan originator that fails to comply with any of the173 |
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| 205 | 205 | | requirements under this Code section shall be given written notice by the department of174 |
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| 206 | 206 | | such failure to comply by certified mail and shall have 90 days from the receipt of such175 |
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| 207 | 207 | | notice to correct all deficiencies.176 23 LC 43 2688 |
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| 208 | 208 | | H. B. 488 |
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| 209 | 209 | | - 8 - |
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| 210 | 210 | | (3) Upon failure to correct all deficiencies within 90 days, the department shall revoke177 |
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| 211 | 211 | | the mortgage loan originator's status as a qualified organization and such entity shall be178 |
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| 212 | 212 | | immediately removed from the department's list of organizations. All applications for179 |
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| 213 | 213 | | preapproval of tax credits for contributions to such mortgage loan originator under this180 |
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| 214 | 214 | | Code section made on or after the date of such removal shall be rejected.181 |
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| 215 | 215 | | (4) Each mortgage loan originator that has had its status revoked and has been delisted182 |
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| 216 | 216 | | pursuant to this Code section shall immediately cease all expenditures of funds received183 |
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| 217 | 217 | | relative to this Code section, and shall transfer all of such funds that are not yet expended,184 |
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| 218 | 218 | | to a properly operating qualified mortgage loan originator within 30 calendar days of its185 |
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| 219 | 219 | | removal from the department's list of qualified mortgage loan originators.186 |
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| 220 | 220 | | (k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount187 |
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| 221 | 221 | | of qualified contributions that were utilized as deductions or exemptions from taxable188 |
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| 222 | 222 | | income.189 |
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| 223 | 223 | | (2) In no event shall the total amount of the tax credit under this Code section for a190 |
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| 224 | 224 | | taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be191 |
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| 225 | 225 | | allowed the taxpayer against the succeeding five years' tax liability. No such credit shall192 |
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| 226 | 226 | | be allowed the taxpayer against prior years' tax liability.193 |
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| 227 | 227 | | (l) The commissioner shall promulgate rules and regulations necessary to implement and194 |
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| 228 | 228 | | administer the provisions of this Code section."195 |
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| 229 | 229 | | SECTION 3.196 |
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| 230 | 230 | | This Act shall become effective on July 1, 2023, and shall be applicable to taxable years197 |
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| 231 | 231 | | beginning on or after January 1, 2024.198 |
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| 232 | 232 | | SECTION 4.199 |
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| 233 | 233 | | All laws and parts of laws in conflict with this Act are repealed.200 |
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