25 LC 39 4582
House Bill 330
By: Representatives Cannon of the 172
nd
, Gaines of the 120
th
, Wiedower of the 121
st
, Crowe
of the 118
th
, and Lumsden of the 12
th
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 imposition, rate, computation, exemptions, and credits for income taxes, so as to2
revise provisions for income tax credits for contributions to law enforcement foundations;3
to provide for related matters; to provide for an effective date and applicability; to repeal4
conflicting laws; and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to8
imposition, rate, computation, exemptions, and credits for income taxes is amended by9
revising Code Section 48-7-29.25, relating to income tax credits for contributions to law10
enforcement foundations, as follows:11
"48-7-29.25.12
(a) As used in this Code section, the term:13
(1) 'Law enforcement foundation' means any domestic nonprofit corporation with the14
sole function of supporting one local
law enforcement unit through a formal relationship15
recognized by such local law enforcement unit with one or more local law enforcement16
units or which provides support to law enforcement state wide and which maintains17
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nonprofit status under Section 501(c)(3) of the Internal Revenue Code and tax exempt
18
status under Code Section 48-7-25.19
(2) 'Local law enforcement unit' means any agency, office, or department of a county,20
municipality, or consolidated government of this state whose primary functions include21
the enforcement of criminal or traffic laws, preservation of public order, protection of life22
and property, or the prevention, detection, or investigation of crime. Such term shall23
include any sheriff's office in this state. Such term shall not include any agency, office,24
or department conducting similar functions for any court, state board, state authority,25
state law enforcement division or department, railroad police, or any unit appointed under26
the authority of Chapter 9 of Title 35 of the Official Code of Georgia Annotated.27
(3) 'Qualified contributions' means the preapproved contribution of funds by a taxpayer28
to a qualified law enforcement foundation under the terms and conditions of this Code29
section.30
(4) 'Qualified expenditures' means expenditures made by a qualified law enforcement31
foundation:32
(A)(i) For salary supplements paid no more than twice annually or training provided33
directly to law enforcement officers and other employees
employed by the any local34
law enforcement unit affiliated with such qualified law enforcement foundation; or35
(ii) For the purchase, lease, maintenance, or improvement of equipment to be used36
by such officers or employees;37
(iii) For the purchase or lease of supplies and materials for technology updates,38
including computer hardware and software; or39
(iv) For the lease of facilities or purchase of goods or services to be used for the40
promotion of community engagement; or41
(B) To cover any costs incurred by the any local law enforcement unit affiliated with42
such law enforcement foundation for the operation of an emergency response team that43
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combines law enforcement officers and behavioral health specialists, provided that such
44
costs shall not include salaries or other regular compensation.45
(5) 'Qualified law enforcement foundation' means any law enforcement foundation that:
46
has been designated as the sole local law enforcement foundation for a single local law47
enforcement unit and has been certified48
(A) Has been certified and listed by the commissioner pursuant to subsection (d) of this49
Code section; and50
(B)(i) Has been designated as the law enforcement foundation for a local law51
enforcement unit or combination of neighboring local law enforcement units; or52
(ii) Is a law enforcement foundation which provides support to law enforcement state53
wide.54
(b)(1) The aggregate amount of tax credits allowed under this Code section shall not55
exceed $75 million per calendar year. Each qualified law enforcement foundation shall56
be limited to accepting $3 million per year of contributions made under this Code section.57
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection for taxable58
years beginning on or after January 1, 2023, and ending on or before December 31, 2027,59
each taxpayer shall be allowed a credit against the tax imposed by this chapter for60
qualified contributions made by the taxpayer as follows:61
(A) In the case of a single individual or a head of household, the actual amount of62
qualified contributions made or $5,000.00 per tax year, whichever is less;63
(B) In the case of a married couple filing a joint return, the actual amount of qualified64
contributions made or $10,000.00 per tax year, whichever is less;65
(C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph66
notwithstanding, in the case of an individual taxpayer who is a member of a limited67
liability company duly formed under state law, a shareholder of a Subchapter 'S'68
corporation, or a partner in a partnership, the actual amount of qualified contributions69
it made or $10,000.00 per tax year, whichever is less; provided, however, that tax70
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credits pursuant to this paragraph shall only be allowed for the portion of the income
71
on which such tax was actually paid by such member of the limited liability company,72
shareholder of a Subchapter 'S' corporation, or partner in a partnership; or73
(D) A corporation or other entity not provided for in subparagraphs (A) through (C)74
of this paragraph shall be allowed a credit against the tax imposed by this chapter, for75
qualified contributions in an amount not to exceed the actual amount of qualified76
contributions made or 75 percent of such corporation's or other entity's income tax77
liability, whichever is less.78
(3) Nothing in this Code section shall be construed to limit the ability of a local law79
enforcement unit to receive gifts, grants, and other benefits from any source allowed by80
law; provided, however, that no local law enforcement unit shall, under this Code section,81
accept or receive more than $3 million in contributions in any calendar year.82
(c) The commissioner shall establish a page on the department's public
website for the83
purpose of implementing this Code section. Such page shall contain, at a minimum:84
(1) The application and requirements to be certified as a qualified law enforcement85
foundation;86
(2) The current list of all qualified law enforcement foundations and their affiliate law87
enforcement units;88
(3) The total amount of tax credits remaining and available for preapproval for each year;89
(4) A web based method for taxpayers seeking the preapproval status for contributions;90
and91
(5) The information received by the department from each qualified law enforcement92
foundation pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv)93
of this Code section.94
(d) Any valid law enforcement foundation as a qualified law enforcement foundation shall95
be certified by the commissioner following the commissioner's receipt of a properly96
completed application and after the commissioner has confirmed that a single local law97
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enforcement unit has validly designated the applicant as its sole law enforcement98
foundation; provided, however, that such designation shall not be required for an applicant99
that provides support to law enforcement state wide. Such application shall be prescribed100
by the commissioner and shall include an agreement by the applicant to fully comply with101
the terms and conditions of this Code section.102
(e)(1) Prior to making a contribution to any qualified law enforcement foundation, the103
taxpayer shall electronically notify the department, in a manner specified by the104
commissioner, of the total amount of contribution that such taxpayer intends to make to105
such qualified law enforcement foundation.106
(2) Within 30 days after receiving a request for preapproval of contributions, the107
commissioner shall preapprove, deny, or prorate requested amounts on a first come, first108
served basis and shall provide notice to such taxpayer and the qualified law enforcement109
foundation of such preapproval, denial, or proration. Such notices shall not require any110
signed release or notarized approval by the taxpayer. The preapproval of contributions111
by the commissioner shall be based solely on the availability of tax credits subject to the112
limits established under paragraph (1) of subsection (b) of this Code section.113
(3) Within 60 days after receiving the preapproval notice issued by the commissioner114
pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved115
amount to the qualified law enforcement foundation or such preapproved contribution116
amount shall expire. The commissioner shall not include such expired amounts in117
determining the remaining amount available under the aggregate limit for the respective118
calendar year.119
(f)(1) Each qualified law enforcement foundation shall issue to each contributor making120
a contribution pursuant to this Code section a letter of confirmation of contribution,121
which shall include the taxpayer's name, address, tax identification number, the amount122
of the qualified contribution, the date of the qualified contribution, and the total amount123
of the credit allowed to the taxpayer.124
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(2) In order for a taxpayer to claim the tax credit allowed under this Code section, all
125
such applicable letters as provided for in paragraph (1) of this subsection shall be attached126
to the taxpayer's tax return. When the taxpayer files an electronic return such127
confirmation shall only be required to be electronically attached to the return if the128
Internal Revenue Service allows such attachments to be affixed and transmitted to the129
department. In any such event, the taxpayer shall maintain such confirmation and such130
confirmation shall only be made available to the commissioner upon request.131
(3) The commissioner shall allow tax credits for any preapproved contributions made to132
a local law enforcement foundation at the time the contributions were made if such133
foundation was a qualified law enforcement foundation at the time of the commissioner's134
preapproval of the contributions and the taxpayer has otherwise complied with this Code135
section.136
(g)(1) Each qualified law enforcement foundation shall annually submit to the137
department:138
(A) A complete copy of its IRS Form 990 and other applicable attachments, or for any139
qualified law enforcement foundation that is not required by federal law to file an IRS140
Form 990, such foundation shall submit to the commissioner
equivalent information on141
a form prescribed by the commissioner; and142
(B) A report detailing the contributions received during the calendar year pursuant to143
this Code section on a date determined by, and on a form provided by, the144
commissioner which shall include:145
(i) The total number and dollar value of individual contributions and tax credits146
approved. Individual contributions shall include contributions made by those filing147
income tax returns as a single individual or head of household and those filing joint148
returns;149
(ii) The total number and dollar value of corporate contributions and tax credits150
approved;151
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(iii) The total number and dollar value of all qualified expenditures made; and
152
(iv) A list of contributors, including the dollar value of each contribution and the153
dollar value of each approved tax credit.154
(2) Except for the information published in accordance with paragraph (c) or (h) of this155
Code section, all information or reports relative to this Code section that were provided156
by qualified law enforcement foundations to the department shall be confidential taxpayer157
information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such158
information relates to the contributor or the qualified law enforcement foundation.159
(h) Each qualified law enforcement foundation shall publish on its public
website a copy160
of its affiliated local law enforcement unit's prior year's annual budget containing the total161
amount of funds received from its local governing body. If a qualified law enforcement162
foundation does not maintain a public website, such information shall be otherwise made163
available by the qualified law enforcement foundation to the public upon request.164
(i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified165
contributions to a qualified law enforcement foundation pursuant to this Code section to166
any particular purpose or for the direct benefit of any particular individual.167
(2) A taxpayer that operates, owns, is affiliated with, or is a subsidiary of an association,168
organization, or other entity that contracts directly with a qualified law enforcement169
foundation or the any local law enforcement unit that is affiliated with a qualified law170
enforcement foundation shall not be eligible for tax credits allowed under this Code171
section for contributions made to such qualified law enforcement foundation.172
(3) In soliciting contributions, no person shall represent or direct that, in exchange for173
making qualified contributions to any qualified law enforcement foundation, a taxpayer174
shall receive any direct or particular benefit. The status as a qualified law enforcement175
foundation shall be revoked for any law enforcement foundation determined to be in176
violation of this paragraph and shall not be renewed for at least two years.177
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(j)(1) Qualified contributions shall only be used for qualified expenditures. Each
178
qualified law enforcement foundation shall maintain accurate and current records of all179
expenditures of qualified contributions and provide such records to the commissioner180
upon his or her request.181
(2) A qualified law enforcement foundation that fails to comply with any of the182
requirements under this Code section shall be given written notice by the department of183
such failure to comply by certified mail and shall have 90 days from the receipt of such184
notice to correct all deficiencies.185
(3) Upon failure of a qualified law enforcement foundation
to correct all deficiencies186
within 90 days pursuant to the requirements of paragraph (2) of this subsection, the187
department shall revoke the law enforcement foundation's status as a qualified law188
enforcement foundation and such entity shall be immediately removed from the189
department's list of qualified law enforcement foundations. All applications for190
preapproval of tax credits for contributions to such law enforcement foundation under this191
Code section made on or after the date of such removal shall be rejected.192
(4) Each law enforcement foundation that has had its status revoked and has been193
delisted pursuant to this Code section, shall immediately cease all expenditures of funds194
received relative to this Code section, and shall transfer all of such funds that are not yet195
expended, to a properly operating qualified law enforcement foundation within 30196
calendar days of its removal from the department's list of qualified law enforcement197
foundations.198
(k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount199
of qualified contributions that were utilized as deductions or exemptions from taxable200
income.201
(2) In no event shall the total amount of the tax credit under this Code section for a202
taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be203
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allowed the taxpayer against the succeeding three years' tax liability. No such credit shall
204
be allowed the taxpayer against prior years' tax liability.205
(l) The commissioner shall promulgate rules and regulations necessary to implement and206
administer the provisions of this Code section."207
SECTION 2.208
This Act shall become effective upon its approval by the Governor or upon its becoming law209
without such approval and shall be applicable to all taxable years beginning on or after210
January 1, 2025.211
SECTION 3.212
All laws and parts of laws in conflict with this Act are repealed.213
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