25 HB 266/AP
House Bill 266 (AS PASSED HOUSE AND SENATE)
By: Representatives Sainz of the 180
th
, Ballard of the 147
th
, Bonner of the 73
rd
, Clark of the
100
th
, Petrea of the 166
th
, 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 exempt from taxation certain income received as retirement benefits2
derived from service in the armed forces of the United States or the reserve components3
thereof; to revise a tax credit for contributions to law enforcement foundations; to expand the4
number of foundations that qualify; to expand the qualified expenditures; to increase the5
annual amount of contributions allowed; to reduce a cap for certain entities; to extend the6
sunset date; to remove the carry forward authorization; to provide for procedures; to provide7
for related matters; to provide for effective dates and applicability; to repeal conflicting laws;8
and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,12
is amended in Code Section 48-7-27, relating to computation of taxable net income, by13
revising paragraph (5.1) of subsection (a) as follows:14
"(5.1)(A) Up to $17,500.00 of income
Income received by an individual who is less than15
62 65 years of age paid to such individual as retirement benefits from military service in16
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the armed forces of the United States or the reserve components thereof and an additional17
amount of up to $17,500.00 of such income, provided that he or she has Georgia earned18
income otherwise included in his or her Georgia taxable net income in an amount that19
exceeds $17,500.00 in an amount that shall not exceed $65,000.00.20
(B) In the case of a married couple filing jointly, each spouse who is otherwise21
qualified for an exclusion allowed by this paragraph shall be individually entitled to22
exclude retirement income received by that spouse up to the exclusion amount.23
(C) The exclusions provided for in this paragraph shall not apply to or affect and shall24
be in addition to those adjustments to net income provided for under any other25
paragraph of this subsection; provided, however, that no individual shall be allowed an26
exclusion provided for in this paragraph in addition to any exclusion provided for in27
paragraph (5) of this subsection;"28
SECTION 2.29
Said chapter is further amended in Code Section 48-7-29.25, relating to income tax credits30
for contributions to law enforcement foundations, as follows:31
"48-7-29.25.32
(a) As used in this Code section, the term:33
(1) 'Law enforcement foundation' means any domestic nonprofit corporation with the34
sole function of supporting one local law enforcement unit through a formal relationship35
recognized by such local law enforcement unit with one or more local law enforcement36
units or which provides support to law enforcement state wide and which maintains37
nonprofit status under Section 501(c)(3) of the Internal Revenue Code and tax exempt38
status under Code Section 48-7-25.39
(2) 'Local law enforcement unit' means any agency, office, or department of a county,40
municipality, or consolidated government of this state whose primary functions include41
the enforcement of criminal or traffic laws, preservation of public order, protection of life42
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and property, or the prevention, detection, or investigation of crime. Such term shall
43
include any sheriff's office in this state. Such term shall not include any agency, office,44
or department conducting similar functions for any court, state board, state authority,45
state law enforcement division or department, railroad police, or any unit appointed under46
the authority of Chapter 9 of Title 35 of the Official Code of Georgia Annotated.47
(3) 'Qualified contributions' means the preapproved contribution of funds by a taxpayer48
to a qualified law enforcement foundation under the terms and conditions of this Code49
section.50
(4) 'Qualified expenditures' means expenditures made by a qualified law enforcement51
foundation:52
(A)(i) For salary supplements paid no more than twice annually or training provided53
directly to law enforcement officers and other employees
employed by the any local54
law enforcement unit affiliated with such qualified law enforcement foundation; or55
(ii) For the purchase, lease, maintenance, or improvement of equipment to be used56
by such officers or employees;57
(iii) For the purchase or lease of supplies and materials for technology updates,58
including computer hardware and software; or59
(iv) For the lease of facilities or purchase of goods or services to be used for the60
promotion of community engagement; or61
(B) To cover any costs incurred by the any local law enforcement unit affiliated with62
such law enforcement foundation for the operation of an emergency response team that63
combines law enforcement officers and behavioral health specialists, provided that such64
costs shall not include salaries or other regular compensation.65
(5) 'Qualified law enforcement foundation' means any law enforcement foundation that:66
has been designated as the sole local law enforcement foundation for a single local law67
enforcement unit and has been certified68
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(A) Has been certified and listed by the commissioner pursuant to subsection (d) of this69
Code section; and70
(B)(i) Has been designated as the law enforcement foundation for a local law71
enforcement unit or combination of neighboring local law enforcement units; or72
(ii) Is a law enforcement foundation which provides support to law enforcement state73
wide.74
(b)(1) The aggregate amount of tax credits allowed under this Code section shall not75
exceed $75 million per calendar year. Each qualified law enforcement foundation shall76
be limited to accepting $3 million per year of contributions made under this Code section.77
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection for taxable78
years beginning on or after January 1, 2023, and ending on or before79
December 31, 2027 2031, each taxpayer shall be allowed a credit against the tax imposed80
by this chapter for qualified contributions made by the taxpayer as follows:81
(A) In the case of a single individual or a head of household, the actual amount of82
qualified contributions made or $5,000.00 per tax year, whichever is less;83
(B) In the case of a married couple filing a joint return, the actual amount of qualified84
contributions made or $10,000.00 per tax year, whichever is less;85
(C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph86
notwithstanding, in the case of an individual taxpayer who is a member of a limited87
liability company duly formed under state law, a shareholder of a Subchapter 'S'88
corporation, or a partner in a partnership, the actual amount of qualified contributions89
it made or $10,000.00 per tax year, whichever is less; provided, however, that tax90
credits pursuant to this paragraph shall only be allowed for the portion of the income91
on which such tax was actually paid by such member of the limited liability company,92
shareholder of a Subchapter 'S' corporation, or partner in a partnership; or93
(D) A corporation or other entity not provided for in subparagraphs (A) through (C)94
of this paragraph shall be allowed a credit against the tax imposed by this chapter, for95
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qualified contributions in an amount not to exceed the actual amount of qualified
96
contributions made or 75
75 percent of such corporation's or other entity's income tax97
liability, whichever is less.98
(3) Nothing in this Code section shall be construed to limit the ability of a local law99
enforcement unit to receive gifts, grants, and other benefits from any source allowed by100
law; provided, however, that no local law enforcement unit shall, under this Code section,101
accept or receive more than $3 million in contributions in any calendar year.102
(c) The commissioner shall establish a page on the department's public website for the103
purpose of implementing this Code section. Such page shall contain, at a minimum:104
(1) The application and requirements to be certified as a qualified law enforcement105
foundation;106
(2) The current list of all qualified law enforcement foundations and their affiliate law107
enforcement units;108
(3) The total amount of tax credits remaining and available for preapproval for each year;109
(4) A web based method for taxpayers seeking the preapproval status for contributions;110
and111
(5) The information received by the department from each qualified law enforcement112
foundation pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv)113
of this Code section.114
(d) Any valid law enforcement foundation as a qualified law enforcement foundation shall115
be certified by the commissioner following the commissioner's receipt of a properly116
completed application and after the commissioner has confirmed that a single local law117
enforcement unit has validly designated the applicant as its sole law enforcement118
foundation; provided, however, that such designation shall not be required for an applicant119
that provides support to law enforcement state wide. Such application shall be prescribed120
by the commissioner and shall include an agreement by the applicant to fully comply with121
the terms and conditions of this Code section.122
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(e)(1) Prior to making a contribution to any qualified law enforcement foundation, the
123
taxpayer shall request preapproval by
electronically notify notifying the department, in124
a manner specified by the commissioner, of the total amount of contribution that such125
taxpayer intends to make to such qualified law enforcement foundation.126
(2) Within 30 days after receiving a request for preapproval of contributions, the127
commissioner shall preapprove, deny, or prorate requested amounts on a first come, first128
served basis and shall provide notice to such taxpayer and the qualified law enforcement129
foundation of such preapproval, denial, or proration. Such notices shall not require any130
signed release or notarized approval by the taxpayer. The preapproval of contributions131
by the commissioner shall be based solely on the availability of tax credits subject to the132
limits established under paragraph (1) of subsection (b) of this Code section.133
(3) Within 60 days after receiving the preapproval notice issued by the commissioner134
pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved135
amount to the qualified law enforcement foundation or such preapproved contribution136
amount shall expire. The commissioner shall not include such expired amounts in137
determining the remaining amount amounts available under the aggregate limit limits138
provided in paragraph (1) of subsection (b) of this Code section for the respective139
calendar year.140
(f)(1) Each qualified law enforcement foundation shall issue to each contributor making141
a contribution pursuant to this Code section a letter of confirmation of contribution,142
which shall include the taxpayer's name, address, tax identification number, the amount143
of the qualified contribution, the date of the qualified contribution, and the total amount144
of the credit allowed to the taxpayer.145
(2) In order for a taxpayer to claim the tax credit allowed under this Code section, all146
such applicable letters as provided for in paragraph (1) of this subsection shall be attached147
to the taxpayer's tax return. When the taxpayer files an electronic return such148
confirmation shall only be required to be electronically attached to the return if the149
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Internal Revenue Service allows such attachments to be affixed and transmitted to the
150
department. In any such event, the taxpayer shall maintain such confirmation and such151
confirmation shall only be made available to the commissioner upon request.152
(3) The commissioner shall allow tax credits for any preapproved contributions made to153
a local
qualified law enforcement foundation at the time the contributions were made if154
such foundation was a qualified law enforcement foundation at the time of the155
commissioner's preapproval of the contributions and the taxpayer has otherwise complied156
with this Code section.157
(4)(A) For the period beginning on July 1 and ending on December 31 of each year,158
to the extent that the aggregate amount of tax credits authorized by subsection (b) of159
this Code section has not been reached, the commissioner shall preapprove, deny, or160
prorate additional requested amounts on a first come, first served basis and shall161
provide notice to such taxpayer and the qualified law enforcement foundation of such162
preapproval, denial, or proration.163
(B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code164
section during the period provided for in subparagraph (A) of this paragraph shall only165
be allowed such credit in an amount that shall not exceed 95 percent of the amount166
otherwise allowed pursuant to this Code section.167
(g)(1) Each qualified law enforcement foundation shall annually submit to the168
department:169
(A) A complete copy of its IRS Form 990 and other applicable attachments, or for any170
qualified law enforcement foundation that is not required by federal law to file an IRS171
Form 990, such foundation shall submit to the commissioner equivalent information on172
a form prescribed by the commissioner; and173
(B) A report detailing the contributions received during the calendar year pursuant to174
this Code section on a date determined by, and on a form provided by, the175
commissioner which shall include:176
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(i) The total number and dollar value of individual contributions and tax credits
177
approved. Individual contributions shall include contributions made by those filing178
income tax returns as a single individual or head of household and those filing joint179
returns;180
(ii) The total number and dollar value of corporate contributions and tax credits181
approved;182
(iii) The total number and dollar value of all qualified expenditures made; and183
(iv) A list of contributors, including the dollar value of each contribution and the184
dollar value of each approved tax credit.185
(2) Except for the information published in accordance with paragraph (c) or (h) of this186
Code section, all information or reports relative to this Code section that were provided187
by qualified law enforcement foundations to the department shall be confidential taxpayer188
information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such189
information relates to the contributor or the qualified law enforcement foundation.190
(h) Each qualified law enforcement foundation shall publish on its public
website a copy191
of its affiliated local law enforcement unit's prior year's annual budget containing the total192
amount of funds received from its local governing body. If a qualified law enforcement193
foundation does not maintain a public website, such information shall be otherwise made194
available by the qualified law enforcement foundation to the public upon request.195
(i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified196
contributions to a qualified law enforcement foundation pursuant to this Code section to197
any particular purpose or for the direct benefit of any particular individual.198
(2) A taxpayer that operates, owns, is affiliated with, or is a subsidiary of an association,199
organization, or other entity that contracts directly with a qualified law enforcement200
foundation or the any local law enforcement unit that is affiliated with a qualified law201
enforcement foundation shall not be eligible for tax credits allowed under this Code202
section for contributions made to such qualified law enforcement foundation.203
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(3) In soliciting contributions, no person shall represent or direct that, in exchange for
204
making qualified contributions to any qualified law enforcement foundation, a taxpayer205
shall receive any direct or particular benefit. The status as a qualified law enforcement206
foundation shall be revoked for any law enforcement foundation determined to be in207
violation of this paragraph and shall not be renewed for at least two years.208
(j)(1) Qualified contributions shall only be used for qualified expenditures. Each209
qualified law enforcement foundation shall maintain accurate and current records of all210
expenditures of qualified contributions and provide such records to the commissioner211
upon his or her request.212
(2) A qualified law enforcement foundation that fails to comply with any of the213
requirements under this Code section shall be given written notice by the department of214
such failure to comply by certified mail and shall have 90 days from the receipt of such215
notice to correct all deficiencies.216
(3) Upon failure of a qualified law enforcement foundation
to correct all deficiencies217
within 90 days pursuant to the requirements of paragraph (2) of this subsection, the218
department shall revoke the law enforcement foundation's status as a qualified law219
enforcement foundation and such entity shall be immediately removed from the220
department's list of qualified law enforcement foundations. All applications for221
preapproval of tax credits for contributions to such law enforcement foundation under this222
Code section made on or after the date of such removal shall be rejected.223
(4) Each law enforcement foundation that has had its status revoked and has been224
delisted pursuant to this Code section, shall immediately cease all expenditures of funds225
received relative to this Code section, and shall transfer all of such funds that are not yet226
expended, to a properly operating qualified law enforcement foundation within 30227
calendar days of its removal from the department's list of qualified law enforcement228
foundations.229
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(k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount
230
of qualified contributions that were utilized as deductions or exemptions from taxable231
income.232
(2) In no event shall the total amount of the tax credit under this Code section for a233
taxable year exceed the taxpayer's income tax liability. Any
No unused tax credit shall234
be allowed the taxpayer against the succeeding three years' tax liability. No such credit235
shall be allowed the taxpayer against prior years' tax liability.236
(l) The commissioner shall promulgate rules and regulations necessary to implement and237
administer the provisions of this Code section."238
SECTION 3.239
(a) Except as provided in subsection (b) of this section, this Act shall become effective on240
July 1, 2025, and shall be applicable to all taxable years beginning on or after January 1,241
2026.242
(b) Section 1 of this Act shall become effective on January 1, 2027, and shall be applicable243
to all taxable years beginning on or after January 1, 2027.244
SECTION 4.245
All laws and parts of laws in conflict with this Act are repealed.246
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