25 LC 50 1204S
House Bill 328 (COMMITTEE SUBSTITUTE)
By: Representatives Carpenter of the 4
th
, Hilton of the 48
th
, Carson of the 46
th
, Ridley of the
6
th
, Gaines of the 120
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
1
relating to income tax imposition, rate, computation, exemptions, and credits, so as to revise2
a tax credit for certain contributions to student scholarship organizations; to increase the3
annual aggregate limit; to decrease the amount allowed for insurance companies; to provide4
that such credits shall not carry forward; to provide for related matters; to provide for an5
effective date and applicability; to repeal conflicting laws; and for other purposes.6
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7
SECTION 1.8
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to9
income tax imposition, rate, computation, exemptions, and credits, is amended in Code10
Section 48-7-29.16, relating to tax credits for contributions to student scholarship11
organizations, by revising subsections (c.1), (e), and (f) as follows:12
"(c.1) A business enterprise shall be allowed a credit against the tax imposed by Code13
Section 33-8-4 in an amount equal to its qualified education expenses or 75
30 percent of14
the business enterprise's state insurance premium tax liability owed pursuant to Code15
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Section 33-8-4, whichever is less; provided, however, that the amount of such credit shall16
not exceed $1 million."17
"(e) In no event shall the total amount of the tax credit allowed to any taxpayer or business18
enterprise under this Code section for a taxable year exceed such taxpayer's income tax19
liability or such business enterprise's state insurance premium tax liability owed pursuant20
to Code Section 33-8-4, provided that any unused tax credit shall be allowed the taxpayer21
or business enterprise against up to its succeeding three years' tax liability. No unused tax22
credit shall be allowed the taxpayer or business enterprise against succeeding years' tax23
liability. No such credit shall be allowed the taxpayer or business enterprise against prior24
years' tax liability.25
(f)(1) The aggregate amount of tax credits allowed under this Code section shall not26
exceed:27
(A) Fifty-eight million dollars for the year ending on December 31, 2018;28
(B) For 2019 through 2022, $100 million per year; and29
(C) For 2023 and all subsequent years, $120 $140 million per year.30
(1.1) In no event shall the aggregate amount of tax credits allowed under this Code31
section to all business enterprises for state insurance premium tax liability owed pursuant32
to Code Section 33-8-4 exceed $6 million for any year.33
(2) The commissioner shall allow the tax credits on a first come, first served basis.34
(3) For the purposes of paragraph (1) of this subsection, a student scholarship35
organization shall notify a potential donor of the requirements of this Code section. 36
Before making a contribution to a student scholarship organization, the taxpayer or37
business enterprise shall electronically notify the department, in a manner specified by38
the department, of the total amount of contributions that the taxpayer or business39
enterprise intends to make to the student scholarship organization. The commissioner40
shall preapprove, deny, or prorate the requested amount within 30 days after receiving41
the request from the taxpayer or business enterprise and shall provide notice to the42
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taxpayer or business enterprise and the student scholarship organization of such
43
preapproval, denial, or proration which shall not require any signed release or notarized44
approval by the taxpayer or business enterprise. In order to receive a tax credit under this45
Code section, the taxpayer or business enterprise shall make the contribution to the46
student scholarship organization within 60 days after receiving notice from the47
department that the requested amount was preapproved. If the taxpayer or business48
enterprise does not comply with this paragraph, the commissioner shall not include this49
preapproved contribution amount when calculating the limit prescribed in paragraph (1)50
of this subsection or the additional limitation specific to business enterprises prescribed
51
in paragraph (1.1) of this subsection. The department shall establish a web based52
donation approval process to implement this subsection.53
(4) Preapproval of contributions by the commissioner shall be based solely on the54
availability of tax credits subject to the aggregate total limit established under paragraph55
(1) of this subsection or the additional limitation specific to business enterprises56
prescribed in paragraph (1.1) of this subsection. The department shall maintain an57
ongoing, current list on its website of the amount of tax credits available under this Code58
section.59
(5)(A) For the period beginning on July 1 and ending on December 31 of each year,60
to the extent that the aggregate amount of tax credits authorized by subsection (b) of61
this Code section has not been reached, the commissioner shall preapprove, deny, or62
prorate additional requested amounts on a first come, first served basis and shall63
provide notice to such taxpayer and the qualified scholarship organization of such64
preapproval, denial, or proration.65
(B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code66
section during the period provided for in subparagraph (A) of this paragraph shall only67
be allowed such credit in an amount that shall not exceed 95 percent of the amount68
otherwise allowed pursuant to this Code section.69
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(6) Notwithstanding any laws to the contrary, the department shall not take any adverse70
action against donors to student scholarship organizations if the commissioner71
preapproved a donation for a tax credit prior to the date the student scholarship72
organization is removed from the Department of Education list pursuant to Code73
Section 20-2A-7, and all such donations shall remain as preapproved tax credits subject74
only to the donor's compliance with paragraph (3) of this subsection.75
(6)(7) In addition to the reporting requirements in Code Section 20-2A-3, each student76
scholarship organization shall file an annual report with the department showing any fees77
or assessments retained by the student scholarship organization during the calendar year."78
SECTION 2.79
This Act shall become effective on July 1, 2025, and shall be applicable to taxable years80
beginning on or after January 1, 2026.81
SECTION 3.82
All laws and parts of laws in conflict with this Act are repealed.83
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