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