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The Senate Committee on Finance offered the following
substitute to HB 504:
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 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 expand the definition of "rural hospital4
organizations"; to revise the manner of preapproving and allocating certain contributions; to5
extend the sunset provision; to amend Code Section 48-7-29.21 of the Official Code of6
Georgia Annotated, relating to tax credits for qualified education donations for the purpose7
of awarding grants to public schools, so as to provide for a sunset date; to amend an Act8
relating to education and to revenue and taxation to authorize the Public Education9
Innovation Fund Foundation to receive private donations to be used for grants to public10
schools; to provide for grant criteria; to provide for an income tax credit for qualified11
education donations; to provide for conditions and limitations; to provide for powers, duties,12
and authority of the state revenue commissioner with respect to such donations, approved13
April 27, 2017 (Ga L. 2017, p. 100), so as to repeal a sunset provision; to provide for related14
matters; to provide for effective dates and applicability; to repeal conflicting laws; and for15
other purposes.16
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:17 23 LC 43 2830S
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PART I18
SECTION 1-1.19
Code Section 31-8-9.1 of the Official Code of Georgia Annotated, relating to eligibility to20
receive tax credits, is amended by revising paragraph (3) of subsection (a) as follows:21
"(3) 'Rural hospital organization' means an acute care hospital or rural freestanding
22
emergency department licensed by the department pursuant to Article 1 of Chapter 7 of23
this title that:24
(A) Has its primary campus Provides inpatient hospital services at a facility located in25
a rural county or is a critical access hospital;26
(B) Participates in both Medicaid and medicare and accepts both Medicaid and27
medicare patients;28
(C) Provides health care services to indigent patients;29
(D) Has at least 10 percent of its annual net revenue categorized as indigent care,30
charity care, or bad debt;31
(E) Annually files IRS Form 990, Return of Organization Exempt From Income Tax,32
with the department, or for any hospital not required to file IRS Form 990, the33
department will provide a form that collects the same information to be submitted to the34
department on an annual basis;35
(F) Is operated by a county or municipal authority pursuant to Article 4 of Chapter 736
of this title or is designated as a tax-exempt organization under Section 501(c)(3) of the37
Internal Revenue Code;38
(G) Is current with all audits and reports required by law; and39
(H) Has a three-year average patient margin, as a percent of expense, less than one40
standard deviation above the state-wide three-year average of organizations defined in41
subparagraphs (A) through (G) of this paragraph, as calculated by the department. For42
purposes of this subparagraph, the term 'patient margin' means gross patient revenues43 23 LC 43 2830S
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less contractual adjustments, bad debt, indigent and charity care, other uncompensated44
care, and total expenses."45
SECTION 1-2.46
Code Section 48-7-29.20 of the Official Code of Georgia Annotated, relating to tax credits47
for contributions to rural hospital organizations, is amended by revising subsections (e) and48
(k) as follows:49
"(e)(1) In no event shall the aggregate amount of tax credits allowed under this Code50
section exceed $75 million per taxable year.51
(2)(A) No more than $4 million of the aggregate limit established by paragraph (1) of52
this subsection shall be contributed to any individual rural hospital organization in any53
taxable year. From January 1 to June 30 each taxable year, the commissioner shall only54
preapprove contributions submitted by individual taxpayers in an amount not to exceed55
$2 million, and from corporate donors in an amount not to exceed $2 million. From56
July 1 to December 31 each taxable year, subject to the aggregate limit in paragraph (1)57
of this subsection and the individual rural hospital organization limit in this paragraph,58
the commissioner shall approve contributions submitted by individual taxpayers and59
corporations or other entities.60
(B) In the event an individual or corporate donor desires to make a contribution to an61
individual rural hospital organization that has received the maximum amount of62
contributions for that taxable
year, the Department of Community Health shall provide63
the individual or corporate donor with a list, ranked in order of financial need, as64
determined by the Department of Community Health, of rural hospital organizations65
still eligible to receive contributions for the taxable year.66
(C) In the event an individual or corporate donor desires to make a contribution to an67
individual rural hospital organization that would cause such rural hospital organization68
to exceed its maximum amount of contributions for that year, the commissioner shall69 23 LC 43 2830S
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not deny such desired contribution, but shall approve the proportional amount of the
70
desired contribution up to the rural hospital organization's maximum allowed amount;71
any remainder shall be attributed as provided for in subparagraph (D) of this paragraph.72
(C)(D) In the event that an individual or corporate donor desires to make a contribution73
to an unspecified or undesignated rural hospital organization, either directly to the74
department or through a third party that participates in soliciting, administering, or75
managing donations, such donation shall be attributed to the rural hospital organization76
ranked with the highest financial need that has not yet received the maximum amount77
of contributions for that taxable year, regardless of whether a third party has a78
contractual relationship or agreement with such rural hospital organization.79
(D)(E) Any third party that participates in soliciting, advertising, or managing80
donations shall provide the complete list of rural hospital organizations eligible to81
receive the tax credit provided pursuant to this Code section including their ranking in82
order of financial need as determined by the Department of Community Health83
pursuant to Code Section 31-8-9.1, to any potential donor regardless of whether a third84
party has a contractual relationship or agreement with such rural hospital organization.85
(3) For purposes of paragraphs (1) and (2) of this subsection, a rural hospital86
organization shall notify a potential donor of the requirements of this Code section.87
Before making a contribution to a rural hospital organization, the taxpayer shall88
electronically notify the department, in a manner specified by the department, of the total89
amount of contribution that the taxpayer intends to make to the rural hospital90
organization. The commissioner shall preapprove or deny the requested amount or a91
portion of such amount, if applicable pursuant to subparagraph (C) of paragraph (2) of92
this subsection, within 30 days after receiving the request from the taxpayer and shall93
provide written notice to the taxpayer and rural hospital organization of such preapproval94
or denial which shall not require any signed release or notarized approval by the taxpayer.95
In order to receive a tax credit under this Code section, the taxpayer shall make the96 23 LC 43 2830S
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contribution to the rural hospital organization within 180 days after receiving notice from
97
the department that the requested amount was preapproved. In order to receive a tax98
credit under this Code section, a taxpayer preapproved by the department on or before99
September 30 shall make the contribution to the rural hospital organization within 180100
days after receiving notice of preapproval from the department, but not later than October101
31. A taxpayer preapproved by the department after September 30 shall make the102
contribution to the rural hospital organization on or before December 31. If the taxpayer103
does not comply with this paragraph, the commissioner shall not include this preapproved104
contribution amount when calculating the limits prescribed in paragraphs (1) and (2) of105
this subsection.106
(4)(A) Preapproval of contributions by the commissioner shall be based solely on the107
availability of tax credits subject to the aggregate total limit established under108
paragraph (1) of this subsection and the individual rural hospital organization limit109
established under paragraph (2) of this subsection.110
(B) Any taxpayer preapproved by the department pursuant to this subsection shall111
retain their approval in the event the credit percentage in this Code section is modified112
for the year in which the taxpayer was preapproved.113
(C) Upon the rural hospital organization's confirmation of receipt of donations that114
have been preapproved by the department, any taxpayer preapproved by the department115
pursuant to subsection (c) of this Code section shall receive the full benefit of the116
income tax credit established by this Code section even though the rural hospital117
organization to which the taxpayer made a donation does not properly comply with the118
reports or filings required by this Code section.119
(5) Notwithstanding any laws to the contrary, the department shall not take any adverse120
action against donors to rural hospital organizations if the commissioner preapproved a121
donation for a tax credit prior to the date the rural hospital organization is removed from122
the Department of Community Health list pursuant to Code Section 31-8-9.1, and all such123 23 LC 43 2830S
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donations shall remain as preapproved tax credits subject only to the donor's compliance124
with paragraph (3) of this subsection."125
"(k) This Code section shall stand automatically repealed on December 31, 2024
2026."126
PART II127
SECTION 2-1.128
Code Section 48-7-29.21 of the Official Code of Georgia Annotated, relating to tax credits129
for qualified education donations for the purpose of awarding grants to public schools, is130
amended by revising paragraph (1) of subsection (f) and by adding a new subsection to read131
as follows:132
"(f)(1) In no event shall the aggregate amount of tax credits allowed under this Code133
section exceed $5 million per tax year."134
"(j) This Code section shall stand repealed and reserved on December 31, 2026."135
SECTION 2-2.136
An Act relating to education and to revenue and taxation to authorize the Public Education137
Innovation Fund Foundation to receive private donations to be used for grants to public138
schools; to provide for grant criteria; to provide for an income tax credit for qualified139
education donations; to provide for conditions and limitations; to provide for powers, duties,140
and authority of the state revenue commissioner with respect to such donations, approved141
April 27, 2017 (Ga L. 2017, p. 100), is amended by repealing Section 3.142 23 LC 43 2830S
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PART III143
SECTION 3-1.144
(a) This Act shall become effective on July 1, 2023; provided, however, that Part I and145
Section 2-1 of this Act shall become effective on January 1, 2024.146
(b) This Act shall be applicable to taxable years beginning on or after January 1, 2024.147
SECTION 3-2.148
All laws and parts of laws in conflict with this Act are repealed.149