25 LC 50 1198S
The House Committee on Ways and Means offers the following substitute to HB 330:
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
increase the annual aggregate limit for tax credits available for qualified education donations;3
to lower the amount of the credit allowed for certain entities; to revise provisions for income4
tax credits for contributions to law enforcement foundations; to expand the number of5
foundations that qualify; to expand the qualified expenditures; to increase the annual amount6
of contributions allowed; to extend the sunset date; to remove the carry forward7
authorizations; to provide for procedures; to provide for related matters; to provide for an8
effective date and applicability; to repeal conflicting laws; and for other purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to12
imposition, rate, computation, exemptions, and credits for income taxes, is amended in Code13
Section 48-7-29.21, relating to tax credits for donations to nonprofit corporations awarding14
grants to public schools, by revising subsections (c), (e), and (f) as follows:15
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"(c) A corporation or other entity shall be allowed a credit against the tax imposed by this16
chapter for qualified education donations in an amount not to exceed the actual amount17
donated or 75 30 percent of the corporation’s income tax liability, whichever is less."18
"(e) In no event shall the total amount of the tax credit under this Code section for a taxable19
year exceed the taxpayer's income tax liability. Any No unused tax credit shall be allowed20
the taxpayer against the succeeding three years' tax liability. No such credit shall be21
allowed the taxpayer against prior years' tax liability.22
(f)(1) In no event shall the aggregate amount of tax credits allowed under this Code23
section exceed: $20 million per calendar year24
(A) $5 million for the tax year ending on December 31, 2023; or25
(B) $15 million for the tax year 2024, and for all subsequent tax years.26
(2) The commissioner shall allow the tax credits on a first come, first served basis.27
(3) For the purposes of paragraph (1) of this subsection, the recipient shall notify a28
potential donor of the requirements of this Code section. Before making a donation to29
the recipient, the taxpayer shall electronically notify the department, in a manner30
specified by the department, of the total amount of donations that the taxpayer intends to31
make to the recipient. The commissioner shall preapprove or deny the requested amount32
within 30 days after receiving the request from the taxpayer and shall provide notice to33
the taxpayer and the recipient of such preapproval or denial which shall not require any34
signed release or notarized approval by the taxpayer. In order to receive a tax credit35
under this Code section, the taxpayer shall make the donation to the recipient within 6036
days after receiving notice from the department that the requested amount was37
preapproved. If the taxpayer does not comply with this paragraph, the commissioner38
shall not include this preapproved donation amount when calculating the limit prescribed39
in paragraph (1) of this subsection. The department shall establish a web based donation40
approval process to implement this subsection.41
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(4) Preapproval of donations by the commissioner shall be based solely on the availability42
of tax credits subject to the aggregate total limit established under paragraph (1) of this43
subsection. The department shall maintain an ongoing, current list on its website of the44
amount of tax credits available under this Code section.45
(5)(A) For the period beginning on July 1 and ending on December 31 of each year,46
to the extent that the aggregate amount of tax credits authorized by subsection (b) of47
this Code section has not been reached, the commissioner shall preapprove, deny, or48
prorate additional requested amounts on a first come, first served basis and shall49
provide notice to such taxpayer and the recipient of such preapproval, denial, or50
proration.51
(B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code52
section during the period provided for in subparagraph (A) of this paragraph shall only53
be allowed such credit in an amount that shall not exceed 95 percent of the amount54
otherwise allowed pursuant to this Code section."55
SECTION 2.56
Said article is further amended by revising Code Section 48-7-29.25, relating to income tax57
credits for contributions to law enforcement foundations, as follows:58
"48-7-29.25.59
(a) As used in this Code section, the term:60
(1) 'Law enforcement foundation' means any domestic nonprofit corporation with the61
sole function of supporting one local law enforcement unit through a formal relationship62
recognized by such local law enforcement unit with one or more local law enforcement63
units or which provides support to law enforcement state wide and which maintains64
nonprofit status under Section 501(c)(3) of the Internal Revenue Code and tax exempt65
status under Code Section 48-7-25.66
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(2) 'Local law enforcement unit' means any agency, office, or department of a county,67
municipality, or consolidated government of this state whose primary functions include68
the enforcement of criminal or traffic laws, preservation of public order, protection of life69
and property, or the prevention, detection, or investigation of crime. Such term shall70
include any sheriff's office in this state. Such term shall not include any agency, office,71
or department conducting similar functions for any court, state board, state authority,72
state law enforcement division or department, railroad police, or any unit appointed under73
the authority of Chapter 9 of Title 35 of the Official Code of Georgia Annotated.74
(3) 'Qualified contributions' means the preapproved contribution of funds by a taxpayer75
to a qualified law enforcement foundation under the terms and conditions of this Code76
section.77
(4) 'Qualified expenditures' means expenditures made by a qualified law enforcement78
foundation:79
(A)(i) For salary supplements paid no more than twice annually or training provided80
directly to law enforcement officers and other employees employed by the any local81
law enforcement unit affiliated with such qualified law enforcement foundation; or82
(ii) For the purchase, lease, maintenance, or improvement of equipment to be used83
by such officers or employees;84
(iii) For the purchase or lease of supplies and materials for technology updates,85
including computer hardware and software; or86
(iv) For the lease of facilities or purchase of goods or services to be used for the87
promotion of community engagement; or88
(B) To cover any costs incurred by the any local law enforcement unit affiliated with89
such law enforcement foundation for the operation of an emergency response team that90
combines law enforcement officers and behavioral health specialists, provided that such91
costs shall not include salaries or other regular compensation.92
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(5) 'Qualified law enforcement foundation' means any law enforcement foundation that:93
has been designated as the sole local law enforcement foundation for a single local law94
enforcement unit and has been certified95
(A) Has been certified and listed by the commissioner pursuant to subsection (d) of this96
Code section; and97
(B)(i) Has been designated as the law enforcement foundation for a local law98
enforcement unit or combination of neighboring local law enforcement units; or99
(ii) Is a law enforcement foundation which provides support to law enforcement state100
wide.101
(b)(1) The aggregate amount of tax credits allowed under this Code section shall not102
exceed $75 million per calendar year. Each qualified law enforcement foundation shall103
be limited to accepting $3 million per year of contributions made under this Code section.104
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection for taxable105
years beginning on or after January 1, 2023, and ending on or before106
December 31, 2027 2031, each taxpayer shall be allowed a credit against the tax imposed107
by this chapter for qualified contributions made by the taxpayer as follows:108
(A) In the case of a single individual or a head of household, the actual amount of109
qualified contributions made or $5,000.00 per tax year, whichever is less;110
(B) In the case of a married couple filing a joint return, the actual amount of qualified111
contributions made or $10,000.00 per tax year, whichever is less;112
(C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph113
notwithstanding, in the case of an individual taxpayer who is a member of a limited114
liability company duly formed under state law, a shareholder of a Subchapter 'S'115
corporation, or a partner in a partnership, the actual amount of qualified contributions116
it made or $10,000.00 per tax year, whichever is less; provided, however, that tax117
credits pursuant to this paragraph shall only be allowed for the portion of the income118
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on which such tax was actually paid by such member of the limited liability company,119
shareholder of a Subchapter 'S' corporation, or partner in a partnership; or120
(D) A corporation or other entity not provided for in subparagraphs (A) through (C)121
of this paragraph shall be allowed a credit against the tax imposed by this chapter, for122
qualified contributions in an amount not to exceed the actual amount of qualified123
contributions made or 75 30 percent of such corporation's or other entity's income tax124
liability, whichever is less.125
(3) Nothing in this Code section shall be construed to limit the ability of a local law126
enforcement unit to receive gifts, grants, and other benefits from any source allowed by127
law; provided, however, that no local law enforcement unit shall, under this Code section,128
accept or receive more than $3 million in contributions in any calendar year.129
(c) The commissioner shall establish a page on the department's public website for the130
purpose of implementing this Code section. Such page shall contain, at a minimum:131
(1) The application and requirements to be certified as a qualified law enforcement132
foundation;133
(2) The current list of all qualified law enforcement foundations and their affiliate law134
enforcement units;135
(3) The total amount of tax credits remaining and available for preapproval for each year;136
(4) A web based method for taxpayers seeking the preapproval status for contributions;137
and138
(5) The information received by the department from each qualified law enforcement139
foundation pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv)140
of this Code section.141
(d) Any valid law enforcement foundation as a qualified law enforcement foundation shall142
be certified by the commissioner following the commissioner's receipt of a properly143
completed application and after the commissioner has confirmed that a single local law144
enforcement unit has validly designated the applicant as its sole law enforcement145
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foundation; provided, however, that such designation shall not be required for an applicant146
that provides support to law enforcement state wide. Such application shall be prescribed147
by the commissioner and shall include an agreement by the applicant to fully comply with148
the terms and conditions of this Code section.149
(e)(1) Prior to making a contribution to any qualified law enforcement foundation, the150
taxpayer shall request preapproval by electronically notify notifying the department, in151
a manner specified by the commissioner, of the total amount of contribution that such152
taxpayer intends to make to such qualified law enforcement foundation.153
(2) Within 30 days after receiving a request for preapproval of contributions, the154
commissioner shall preapprove, deny, or prorate requested amounts on a first come, first155
served basis and shall provide notice to such taxpayer and the qualified law enforcement156
foundation of such preapproval, denial, or proration. Such notices shall not require any157
signed release or notarized approval by the taxpayer. The preapproval of contributions158
by the commissioner shall be based solely on the availability of tax credits subject to the159
limits established under paragraph (1) of subsection (b) of this Code section.160
(3) Within 60 days after receiving the preapproval notice issued by the commissioner161
pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved162
amount to the qualified law enforcement foundation or such preapproved contribution163
amount shall expire. The commissioner shall not include such expired amounts in164
determining the remaining amount amounts available under the aggregate limit limits165
provided in paragraph (1) of subsection (b) of this Code section for the respective166
calendar year.167
(f)(1) Each qualified law enforcement foundation shall issue to each contributor making168
a contribution pursuant to this Code section a letter of confirmation of contribution,169
which shall include the taxpayer's name, address, tax identification number, the amount170
of the qualified contribution, the date of the qualified contribution, and the total amount171
of the credit allowed to the taxpayer.172
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(2) In order for a taxpayer to claim the tax credit allowed under this Code section, all173
such applicable letters as provided for in paragraph (1) of this subsection shall be attached174
to the taxpayer's tax return. When the taxpayer files an electronic return such175
confirmation shall only be required to be electronically attached to the return if the176
Internal Revenue Service allows such attachments to be affixed and transmitted to the177
department. In any such event, the taxpayer shall maintain such confirmation and such178
confirmation shall only be made available to the commissioner upon request.179
(3) The commissioner shall allow tax credits for any preapproved contributions made to180
a local qualified law enforcement foundation at the time the contributions were made if181
such foundation was a qualified law enforcement foundation at the time of the182
commissioner's preapproval of the contributions and the taxpayer has otherwise complied183
with this Code section.184
(4)(A) For the period beginning on July 1 and ending on December 31 of each year,185
to the extent that the aggregate amount of tax credits authorized by subsection (b) of186
this Code section has not been reached, the commissioner shall preapprove, deny, or187
prorate additional requested amounts on a first come, first served basis and shall188
provide notice to such taxpayer and the qualified law enforcement foundation of such189
preapproval, denial, or proration.190
(B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code191
section during the period provided for in subparagraph (A) of this paragraph shall only192
be allowed such credit in an amount that shall not exceed 95 percent of the amount193
otherwise allowed pursuant to this Code section.194
(g)(1) Each qualified law enforcement foundation shall annually submit to the195
department:196
(A) A complete copy of its IRS Form 990 and other applicable attachments, or for any197
qualified law enforcement foundation that is not required by federal law to file an IRS198
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Form 990, such foundation shall submit to the commissioner equivalent information on199
a form prescribed by the commissioner; and200
(B) A report detailing the contributions received during the calendar year pursuant to201
this Code section on a date determined by, and on a form provided by, the202
commissioner which shall include:203
(i) The total number and dollar value of individual contributions and tax credits204
approved. Individual contributions shall include contributions made by those filing205
income tax returns as a single individual or head of household and those filing joint206
returns;207
(ii) The total number and dollar value of corporate contributions and tax credits208
approved;209
(iii) The total number and dollar value of all qualified expenditures made; and210
(iv) A list of contributors, including the dollar value of each contribution and the211
dollar value of each approved tax credit.212
(2) Except for the information published in accordance with paragraph (c) or (h) of this213
Code section, all information or reports relative to this Code section that were provided214
by qualified law enforcement foundations to the department shall be confidential taxpayer215
information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such216
information relates to the contributor or the qualified law enforcement foundation.217
(h) Each qualified law enforcement foundation shall publish on its public website a copy218
of its affiliated local law enforcement unit's prior year's annual budget containing the total219
amount of funds received from its local governing body. If a qualified law enforcement220
foundation does not maintain a public website, such information shall be otherwise made221
available by the qualified law enforcement foundation to the public upon request.222
(i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified223
contributions to a qualified law enforcement foundation pursuant to this Code section to224
any particular purpose or for the direct benefit of any particular individual.225
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(2) A taxpayer that operates, owns, is affiliated with, or is a subsidiary of an association,226
organization, or other entity that contracts directly with a qualified law enforcement227
foundation or the any local law enforcement unit that is affiliated with a qualified law228
enforcement foundation shall not be eligible for tax credits allowed under this Code229
section for contributions made to such qualified law enforcement foundation.230
(3) In soliciting contributions, no person shall represent or direct that, in exchange for231
making qualified contributions to any qualified law enforcement foundation, a taxpayer232
shall receive any direct or particular benefit. The status as a qualified law enforcement233
foundation shall be revoked for any law enforcement foundation determined to be in234
violation of this paragraph and shall not be renewed for at least two years.235
(j)(1) Qualified contributions shall only be used for qualified expenditures. Each236
qualified law enforcement foundation shall maintain accurate and current records of all237
expenditures of qualified contributions and provide such records to the commissioner238
upon his or her request.239
(2) A qualified law enforcement foundation that fails to comply with any of the240
requirements under this Code section shall be given written notice by the department of241
such failure to comply by certified mail and shall have 90 days from the receipt of such242
notice to correct all deficiencies.243
(3) Upon failure of a qualified law enforcement foundation to correct all deficiencies244
within 90 days pursuant to the requirements of paragraph (2) of this subsection, the245
department shall revoke the law enforcement foundation's status as a qualified law246
enforcement foundation and such entity shall be immediately removed from the247
department's list of qualified law enforcement foundations. All applications for248
preapproval of tax credits for contributions to such law enforcement foundation under this249
Code section made on or after the date of such removal shall be rejected.250
(4) Each law enforcement foundation that has had its status revoked and has been251
delisted pursuant to this Code section, shall immediately cease all expenditures of funds252
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received relative to this Code section, and shall transfer all of such funds that are not yet253
expended, to a properly operating qualified law enforcement foundation within 30254
calendar days of its removal from the department's list of qualified law enforcement255
foundations.256
(k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount257
of qualified contributions that were utilized as deductions or exemptions from taxable258
income.259
(2) In no event shall the total amount of the tax credit under this Code section for a260
taxable year exceed the taxpayer's income tax liability. Any No unused tax credit shall261
be allowed the taxpayer against the succeeding three years' tax liability. No such credit262
shall be allowed the taxpayer against prior years' tax liability.263
(l) The commissioner shall promulgate rules and regulations necessary to implement and264
administer the provisions of this Code section."265
SECTION 3.266
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years267
beginning on or after January 1, 2026.268
SECTION 4.269
All laws and parts of laws in conflict with this Act are repealed.270
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