| 7 | | - | increase the annual aggregate limit for tax credits available for qualified education donations;3 |
|---|
| 8 | | - | to lower the amount of the credit allowed for certain entities; to revise provisions for income4 |
|---|
| 9 | | - | tax credits for contributions to law enforcement foundations; to expand the number of5 |
|---|
| 10 | | - | foundations that qualify; to expand the qualified expenditures; to increase the annual amount6 |
|---|
| 11 | | - | of contributions allowed; to extend the sunset date; to remove the carry forward7 |
|---|
| 12 | | - | authorizations; to provide for procedures; to provide for related matters; to provide for an8 |
|---|
| 13 | | - | effective date and applicability; to repeal conflicting laws; and for other purposes.9 |
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| 14 | | - | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 |
|---|
| 15 | | - | SECTION 1.11 |
|---|
| 16 | | - | Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to12 |
|---|
| 17 | | - | imposition, rate, computation, exemptions, and credits for income taxes, is amended in Code13 |
|---|
| 18 | | - | Section 48-7-29.21, relating to tax credits for donations to nonprofit corporations awarding14 |
|---|
| 19 | | - | grants to public schools, by revising subsections (c), (e), and (f) as follows:15 |
|---|
| 20 | | - | H. B. 330 (SUB) |
|---|
| 21 | | - | - 1 - 25 LC 50 1198S |
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| 22 | | - | "(c) A corporation or other entity shall be allowed a credit against the tax imposed by this16 |
|---|
| 23 | | - | chapter for qualified education donations in an amount not to exceed the actual amount17 |
|---|
| 24 | | - | donated or 75 30 percent of the corporation’s income tax liability, whichever is less."18 |
|---|
| 25 | | - | "(e) In no event shall the total amount of the tax credit under this Code section for a taxable19 |
|---|
| 26 | | - | year exceed the taxpayer's income tax liability. Any No unused tax credit shall be allowed20 |
|---|
| 27 | | - | the taxpayer against the succeeding three years' tax liability. No such credit shall be21 |
|---|
| 28 | | - | allowed the taxpayer against prior years' tax liability.22 |
|---|
| 29 | | - | (f)(1) In no event shall the aggregate amount of tax credits allowed under this Code23 |
|---|
| 30 | | - | section exceed: $20 million per calendar year24 |
|---|
| 31 | | - | (A) $5 million for the tax year ending on December 31, 2023; or25 |
|---|
| 32 | | - | (B) $15 million for the tax year 2024, and for all subsequent tax years.26 |
|---|
| 33 | | - | (2) The commissioner shall allow the tax credits on a first come, first served basis.27 |
|---|
| 34 | | - | (3) For the purposes of paragraph (1) of this subsection, the recipient shall notify a28 |
|---|
| 35 | | - | potential donor of the requirements of this Code section. Before making a donation to29 |
|---|
| 36 | | - | the recipient, the taxpayer shall electronically notify the department, in a manner30 |
|---|
| 37 | | - | specified by the department, of the total amount of donations that the taxpayer intends to31 |
|---|
| 38 | | - | make to the recipient. The commissioner shall preapprove or deny the requested amount32 |
|---|
| 39 | | - | within 30 days after receiving the request from the taxpayer and shall provide notice to33 |
|---|
| 40 | | - | the taxpayer and the recipient of such preapproval or denial which shall not require any34 |
|---|
| 41 | | - | signed release or notarized approval by the taxpayer. In order to receive a tax credit35 |
|---|
| 42 | | - | under this Code section, the taxpayer shall make the donation to the recipient within 6036 |
|---|
| 43 | | - | days after receiving notice from the department that the requested amount was37 |
|---|
| 44 | | - | preapproved. If the taxpayer does not comply with this paragraph, the commissioner38 |
|---|
| 45 | | - | shall not include this preapproved donation amount when calculating the limit prescribed39 |
|---|
| 46 | | - | in paragraph (1) of this subsection. The department shall establish a web based donation40 |
|---|
| 47 | | - | approval process to implement this subsection.41 |
|---|
| 48 | | - | H. B. 330 (SUB) |
|---|
| 49 | | - | - 2 - 25 LC 50 1198S |
|---|
| 50 | | - | (4) Preapproval of donations by the commissioner shall be based solely on the availability42 |
|---|
| 51 | | - | of tax credits subject to the aggregate total limit established under paragraph (1) of this43 |
|---|
| 52 | | - | subsection. The department shall maintain an ongoing, current list on its website of the44 |
|---|
| 53 | | - | amount of tax credits available under this Code section.45 |
|---|
| 54 | | - | (5)(A) For the period beginning on July 1 and ending on December 31 of each year,46 |
|---|
| 55 | | - | to the extent that the aggregate amount of tax credits authorized by subsection (b) of47 |
|---|
| 56 | | - | this Code section has not been reached, the commissioner shall preapprove, deny, or48 |
|---|
| 57 | | - | prorate additional requested amounts on a first come, first served basis and shall49 |
|---|
| 58 | | - | provide notice to such taxpayer and the recipient of such preapproval, denial, or50 |
|---|
| 59 | | - | proration.51 |
|---|
| 60 | | - | (B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code52 |
|---|
| 61 | | - | section during the period provided for in subparagraph (A) of this paragraph shall only53 |
|---|
| 62 | | - | be allowed such credit in an amount that shall not exceed 95 percent of the amount54 |
|---|
| 63 | | - | otherwise allowed pursuant to this Code section."55 |
|---|
| 64 | | - | SECTION 2.56 |
|---|
| 65 | | - | Said article is further amended by revising Code Section 48-7-29.25, relating to income tax57 |
|---|
| 66 | | - | credits for contributions to law enforcement foundations, as follows:58 |
|---|
| 67 | | - | "48-7-29.25.59 |
|---|
| 68 | | - | (a) As used in this Code section, the term:60 |
|---|
| 69 | | - | (1) 'Law enforcement foundation' means any domestic nonprofit corporation with the61 |
|---|
| 70 | | - | sole function of supporting one local law enforcement unit through a formal relationship62 |
|---|
| 71 | | - | recognized by such local law enforcement unit with one or more local law enforcement63 |
|---|
| 72 | | - | units or which provides support to law enforcement state wide and which maintains64 |
|---|
| 73 | | - | nonprofit status under Section 501(c)(3) of the Internal Revenue Code and tax exempt65 |
|---|
| 74 | | - | status under Code Section 48-7-25.66 |
|---|
| 75 | | - | H. B. 330 (SUB) |
|---|
| 76 | | - | - 3 - 25 LC 50 1198S |
|---|
| 77 | | - | (2) 'Local law enforcement unit' means any agency, office, or department of a county,67 |
|---|
| 78 | | - | municipality, or consolidated government of this state whose primary functions include68 |
|---|
| 79 | | - | the enforcement of criminal or traffic laws, preservation of public order, protection of life69 |
|---|
| 80 | | - | and property, or the prevention, detection, or investigation of crime. Such term shall70 |
|---|
| 81 | | - | include any sheriff's office in this state. Such term shall not include any agency, office,71 |
|---|
| 82 | | - | or department conducting similar functions for any court, state board, state authority,72 |
|---|
| 83 | | - | state law enforcement division or department, railroad police, or any unit appointed under73 |
|---|
| 84 | | - | the authority of Chapter 9 of Title 35 of the Official Code of Georgia Annotated.74 |
|---|
| 85 | | - | (3) 'Qualified contributions' means the preapproved contribution of funds by a taxpayer75 |
|---|
| 86 | | - | to a qualified law enforcement foundation under the terms and conditions of this Code76 |
|---|
| 87 | | - | section.77 |
|---|
| 88 | | - | (4) 'Qualified expenditures' means expenditures made by a qualified law enforcement78 |
|---|
| 89 | | - | foundation:79 |
|---|
| 90 | | - | (A)(i) For salary supplements paid no more than twice annually or training provided80 |
|---|
| 91 | | - | directly to law enforcement officers and other employees employed by the any local81 |
|---|
| 92 | | - | law enforcement unit affiliated with such qualified law enforcement foundation; or82 |
|---|
| 93 | | - | (ii) For the purchase, lease, maintenance, or improvement of equipment to be used83 |
|---|
| 94 | | - | by such officers or employees;84 |
|---|
| 95 | | - | (iii) For the purchase or lease of supplies and materials for technology updates,85 |
|---|
| 96 | | - | including computer hardware and software; or86 |
|---|
| 97 | | - | (iv) For the lease of facilities or purchase of goods or services to be used for the87 |
|---|
| 98 | | - | promotion of community engagement; or88 |
|---|
| 99 | | - | (B) To cover any costs incurred by the any local law enforcement unit affiliated with89 |
|---|
| 100 | | - | such law enforcement foundation for the operation of an emergency response team that90 |
|---|
| 101 | | - | combines law enforcement officers and behavioral health specialists, provided that such91 |
|---|
| 102 | | - | costs shall not include salaries or other regular compensation.92 |
|---|
| 103 | | - | H. B. 330 (SUB) |
|---|
| 104 | | - | - 4 - 25 LC 50 1198S |
|---|
| 105 | | - | (5) 'Qualified law enforcement foundation' means any law enforcement foundation that:93 |
|---|
| 106 | | - | has been designated as the sole local law enforcement foundation for a single local law94 |
|---|
| 107 | | - | enforcement unit and has been certified95 |
|---|
| 108 | | - | (A) Has been certified and listed by the commissioner pursuant to subsection (d) of this96 |
|---|
| 109 | | - | Code section; and97 |
|---|
| 110 | | - | (B)(i) Has been designated as the law enforcement foundation for a local law98 |
|---|
| 111 | | - | enforcement unit or combination of neighboring local law enforcement units; or99 |
|---|
| 112 | | - | (ii) Is a law enforcement foundation which provides support to law enforcement state100 |
|---|
| 113 | | - | wide.101 |
|---|
| 114 | | - | (b)(1) The aggregate amount of tax credits allowed under this Code section shall not102 |
|---|
| 115 | | - | exceed $75 million per calendar year. Each qualified law enforcement foundation shall103 |
|---|
| 116 | | - | be limited to accepting $3 million per year of contributions made under this Code section.104 |
|---|
| 117 | | - | (2) Subject to the aggregate limit provided in paragraph (1) of this subsection for taxable105 |
|---|
| 118 | | - | years beginning on or after January 1, 2023, and ending on or before106 |
|---|
| 119 | | - | December 31, 2027 2031, each taxpayer shall be allowed a credit against the tax imposed107 |
|---|
| 120 | | - | by this chapter for qualified contributions made by the taxpayer as follows:108 |
|---|
| 121 | | - | (A) In the case of a single individual or a head of household, the actual amount of109 |
|---|
| 122 | | - | qualified contributions made or $5,000.00 per tax year, whichever is less;110 |
|---|
| 123 | | - | (B) In the case of a married couple filing a joint return, the actual amount of qualified111 |
|---|
| 124 | | - | contributions made or $10,000.00 per tax year, whichever is less;112 |
|---|
| 125 | | - | (C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph113 |
|---|
| 126 | | - | notwithstanding, in the case of an individual taxpayer who is a member of a limited114 |
|---|
| 127 | | - | liability company duly formed under state law, a shareholder of a Subchapter 'S'115 |
|---|
| 128 | | - | corporation, or a partner in a partnership, the actual amount of qualified contributions116 |
|---|
| 129 | | - | it made or $10,000.00 per tax year, whichever is less; provided, however, that tax117 |
|---|
| 130 | | - | credits pursuant to this paragraph shall only be allowed for the portion of the income118 |
|---|
| 131 | | - | H. B. 330 (SUB) |
|---|
| 132 | | - | - 5 - 25 LC 50 1198S |
|---|
| 133 | | - | on which such tax was actually paid by such member of the limited liability company,119 |
|---|
| 134 | | - | shareholder of a Subchapter 'S' corporation, or partner in a partnership; or120 |
|---|
| 135 | | - | (D) A corporation or other entity not provided for in subparagraphs (A) through (C)121 |
|---|
| 136 | | - | of this paragraph shall be allowed a credit against the tax imposed by this chapter, for122 |
|---|
| 137 | | - | qualified contributions in an amount not to exceed the actual amount of qualified123 |
|---|
| 138 | | - | contributions made or 75 30 percent of such corporation's or other entity's income tax124 |
|---|
| 139 | | - | liability, whichever is less.125 |
|---|
| 140 | | - | (3) Nothing in this Code section shall be construed to limit the ability of a local law126 |
|---|
| 141 | | - | enforcement unit to receive gifts, grants, and other benefits from any source allowed by127 |
|---|
| 142 | | - | law; provided, however, that no local law enforcement unit shall, under this Code section,128 |
|---|
| 143 | | - | accept or receive more than $3 million in contributions in any calendar year.129 |
|---|
| 144 | | - | (c) The commissioner shall establish a page on the department's public website for the130 |
|---|
| 145 | | - | purpose of implementing this Code section. Such page shall contain, at a minimum:131 |
|---|
| 146 | | - | (1) The application and requirements to be certified as a qualified law enforcement132 |
|---|
| 147 | | - | foundation;133 |
|---|
| 148 | | - | (2) The current list of all qualified law enforcement foundations and their affiliate law134 |
|---|
| 149 | | - | enforcement units;135 |
|---|
| 150 | | - | (3) The total amount of tax credits remaining and available for preapproval for each year;136 |
|---|
| 151 | | - | (4) A web based method for taxpayers seeking the preapproval status for contributions;137 |
|---|
| 152 | | - | and138 |
|---|
| 153 | | - | (5) The information received by the department from each qualified law enforcement139 |
|---|
| 154 | | - | foundation pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv)140 |
|---|
| 155 | | - | of this Code section.141 |
|---|
| 156 | | - | (d) Any valid law enforcement foundation as a qualified law enforcement foundation shall142 |
|---|
| 157 | | - | be certified by the commissioner following the commissioner's receipt of a properly143 |
|---|
| 158 | | - | completed application and after the commissioner has confirmed that a single local law144 |
|---|
| 159 | | - | enforcement unit has validly designated the applicant as its sole law enforcement145 |
|---|
| 160 | | - | H. B. 330 (SUB) |
|---|
| 161 | | - | - 6 - 25 LC 50 1198S |
|---|
| 162 | | - | foundation; provided, however, that such designation shall not be required for an applicant146 |
|---|
| 163 | | - | that provides support to law enforcement state wide. Such application shall be prescribed147 |
|---|
| 164 | | - | by the commissioner and shall include an agreement by the applicant to fully comply with148 |
|---|
| 165 | | - | the terms and conditions of this Code section.149 |
|---|
| 166 | | - | (e)(1) Prior to making a contribution to any qualified law enforcement foundation, the150 |
|---|
| 167 | | - | taxpayer shall request preapproval by electronically notify notifying the department, in151 |
|---|
| 168 | | - | a manner specified by the commissioner, of the total amount of contribution that such152 |
|---|
| 169 | | - | taxpayer intends to make to such qualified law enforcement foundation.153 |
|---|
| 170 | | - | (2) Within 30 days after receiving a request for preapproval of contributions, the154 |
|---|
| 171 | | - | commissioner shall preapprove, deny, or prorate requested amounts on a first come, first155 |
|---|
| 172 | | - | served basis and shall provide notice to such taxpayer and the qualified law enforcement156 |
|---|
| 173 | | - | foundation of such preapproval, denial, or proration. Such notices shall not require any157 |
|---|
| 174 | | - | signed release or notarized approval by the taxpayer. The preapproval of contributions158 |
|---|
| 175 | | - | by the commissioner shall be based solely on the availability of tax credits subject to the159 |
|---|
| 176 | | - | limits established under paragraph (1) of subsection (b) of this Code section.160 |
|---|
| 177 | | - | (3) Within 60 days after receiving the preapproval notice issued by the commissioner161 |
|---|
| 178 | | - | pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved162 |
|---|
| 179 | | - | amount to the qualified law enforcement foundation or such preapproved contribution163 |
|---|
| 180 | | - | amount shall expire. The commissioner shall not include such expired amounts in164 |
|---|
| 181 | | - | determining the remaining amount amounts available under the aggregate limit limits165 |
|---|
| 182 | | - | provided in paragraph (1) of subsection (b) of this Code section for the respective166 |
|---|
| 183 | | - | calendar year.167 |
|---|
| 184 | | - | (f)(1) Each qualified law enforcement foundation shall issue to each contributor making168 |
|---|
| 185 | | - | a contribution pursuant to this Code section a letter of confirmation of contribution,169 |
|---|
| 186 | | - | which shall include the taxpayer's name, address, tax identification number, the amount170 |
|---|
| 187 | | - | of the qualified contribution, the date of the qualified contribution, and the total amount171 |
|---|
| 188 | | - | of the credit allowed to the taxpayer.172 |
|---|
| 189 | | - | H. B. 330 (SUB) |
|---|
| 190 | | - | - 7 - 25 LC 50 1198S |
|---|
| 191 | | - | (2) In order for a taxpayer to claim the tax credit allowed under this Code section, all173 |
|---|
| 192 | | - | such applicable letters as provided for in paragraph (1) of this subsection shall be attached174 |
|---|
| 193 | | - | to the taxpayer's tax return. When the taxpayer files an electronic return such175 |
|---|
| 194 | | - | confirmation shall only be required to be electronically attached to the return if the176 |
|---|
| 195 | | - | Internal Revenue Service allows such attachments to be affixed and transmitted to the177 |
|---|
| 196 | | - | department. In any such event, the taxpayer shall maintain such confirmation and such178 |
|---|
| 197 | | - | confirmation shall only be made available to the commissioner upon request.179 |
|---|
| 198 | | - | (3) The commissioner shall allow tax credits for any preapproved contributions made to180 |
|---|
| 199 | | - | a local qualified law enforcement foundation at the time the contributions were made if181 |
|---|
| 200 | | - | such foundation was a qualified law enforcement foundation at the time of the182 |
|---|
| 201 | | - | commissioner's preapproval of the contributions and the taxpayer has otherwise complied183 |
|---|
| 202 | | - | with this Code section.184 |
|---|
| 203 | | - | (4)(A) For the period beginning on July 1 and ending on December 31 of each year,185 |
|---|
| 204 | | - | to the extent that the aggregate amount of tax credits authorized by subsection (b) of186 |
|---|
| 205 | | - | this Code section has not been reached, the commissioner shall preapprove, deny, or187 |
|---|
| 206 | | - | prorate additional requested amounts on a first come, first served basis and shall188 |
|---|
| 207 | | - | provide notice to such taxpayer and the qualified law enforcement foundation of such189 |
|---|
| 208 | | - | preapproval, denial, or proration.190 |
|---|
| 209 | | - | (B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code191 |
|---|
| 210 | | - | section during the period provided for in subparagraph (A) of this paragraph shall only192 |
|---|
| 211 | | - | be allowed such credit in an amount that shall not exceed 95 percent of the amount193 |
|---|
| 212 | | - | otherwise allowed pursuant to this Code section.194 |
|---|
| 213 | | - | (g)(1) Each qualified law enforcement foundation shall annually submit to the195 |
|---|
| 214 | | - | department:196 |
|---|
| 215 | | - | (A) A complete copy of its IRS Form 990 and other applicable attachments, or for any197 |
|---|
| 216 | | - | qualified law enforcement foundation that is not required by federal law to file an IRS198 |
|---|
| 217 | | - | H. B. 330 (SUB) |
|---|
| 218 | | - | - 8 - 25 LC 50 1198S |
|---|
| 219 | | - | Form 990, such foundation shall submit to the commissioner equivalent information on199 |
|---|
| 220 | | - | a form prescribed by the commissioner; and200 |
|---|
| 221 | | - | (B) A report detailing the contributions received during the calendar year pursuant to201 |
|---|
| 222 | | - | this Code section on a date determined by, and on a form provided by, the202 |
|---|
| 223 | | - | commissioner which shall include:203 |
|---|
| 224 | | - | (i) The total number and dollar value of individual contributions and tax credits204 |
|---|
| 225 | | - | approved. Individual contributions shall include contributions made by those filing205 |
|---|
| 226 | | - | income tax returns as a single individual or head of household and those filing joint206 |
|---|
| 227 | | - | returns;207 |
|---|
| 228 | | - | (ii) The total number and dollar value of corporate contributions and tax credits208 |
|---|
| 229 | | - | approved;209 |
|---|
| 230 | | - | (iii) The total number and dollar value of all qualified expenditures made; and210 |
|---|
| 231 | | - | (iv) A list of contributors, including the dollar value of each contribution and the211 |
|---|
| 232 | | - | dollar value of each approved tax credit.212 |
|---|
| 233 | | - | (2) Except for the information published in accordance with paragraph (c) or (h) of this213 |
|---|
| 234 | | - | Code section, all information or reports relative to this Code section that were provided214 |
|---|
| 235 | | - | by qualified law enforcement foundations to the department shall be confidential taxpayer215 |
|---|
| 236 | | - | information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such216 |
|---|
| 237 | | - | information relates to the contributor or the qualified law enforcement foundation.217 |
|---|
| 238 | | - | (h) Each qualified law enforcement foundation shall publish on its public website a copy218 |
|---|
| 239 | | - | of its affiliated local law enforcement unit's prior year's annual budget containing the total219 |
|---|
| 240 | | - | amount of funds received from its local governing body. If a qualified law enforcement220 |
|---|
| 241 | | - | foundation does not maintain a public website, such information shall be otherwise made221 |
|---|
| 242 | | - | available by the qualified law enforcement foundation to the public upon request.222 |
|---|
| 243 | | - | (i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified223 |
|---|
| 244 | | - | contributions to a qualified law enforcement foundation pursuant to this Code section to224 |
|---|
| 245 | | - | any particular purpose or for the direct benefit of any particular individual.225 |
|---|
| 246 | | - | H. B. 330 (SUB) |
|---|
| 247 | | - | - 9 - 25 LC 50 1198S |
|---|
| 248 | | - | (2) A taxpayer that operates, owns, is affiliated with, or is a subsidiary of an association,226 |
|---|
| 249 | | - | organization, or other entity that contracts directly with a qualified law enforcement227 |
|---|
| 250 | | - | foundation or the any local law enforcement unit that is affiliated with a qualified law228 |
|---|
| 251 | | - | enforcement foundation shall not be eligible for tax credits allowed under this Code229 |
|---|
| 252 | | - | section for contributions made to such qualified law enforcement foundation.230 |
|---|
| 253 | | - | (3) In soliciting contributions, no person shall represent or direct that, in exchange for231 |
|---|
| 254 | | - | making qualified contributions to any qualified law enforcement foundation, a taxpayer232 |
|---|
| 255 | | - | shall receive any direct or particular benefit. The status as a qualified law enforcement233 |
|---|
| 256 | | - | foundation shall be revoked for any law enforcement foundation determined to be in234 |
|---|
| 257 | | - | violation of this paragraph and shall not be renewed for at least two years.235 |
|---|
| 258 | | - | (j)(1) Qualified contributions shall only be used for qualified expenditures. Each236 |
|---|
| 259 | | - | qualified law enforcement foundation shall maintain accurate and current records of all237 |
|---|
| 260 | | - | expenditures of qualified contributions and provide such records to the commissioner238 |
|---|
| 261 | | - | upon his or her request.239 |
|---|
| 262 | | - | (2) A qualified law enforcement foundation that fails to comply with any of the240 |
|---|
| 263 | | - | requirements under this Code section shall be given written notice by the department of241 |
|---|
| 264 | | - | such failure to comply by certified mail and shall have 90 days from the receipt of such242 |
|---|
| 265 | | - | notice to correct all deficiencies.243 |
|---|
| 266 | | - | (3) Upon failure of a qualified law enforcement foundation to correct all deficiencies244 |
|---|
| 267 | | - | within 90 days pursuant to the requirements of paragraph (2) of this subsection, the245 |
|---|
| 268 | | - | department shall revoke the law enforcement foundation's status as a qualified law246 |
|---|
| 269 | | - | enforcement foundation and such entity shall be immediately removed from the247 |
|---|
| 270 | | - | department's list of qualified law enforcement foundations. All applications for248 |
|---|
| 271 | | - | preapproval of tax credits for contributions to such law enforcement foundation under this249 |
|---|
| 272 | | - | Code section made on or after the date of such removal shall be rejected.250 |
|---|
| 273 | | - | (4) Each law enforcement foundation that has had its status revoked and has been251 |
|---|
| 274 | | - | delisted pursuant to this Code section, shall immediately cease all expenditures of funds252 |
|---|
| 275 | | - | H. B. 330 (SUB) |
|---|
| 276 | | - | - 10 - 25 LC 50 1198S |
|---|
| 277 | | - | received relative to this Code section, and shall transfer all of such funds that are not yet253 |
|---|
| 278 | | - | expended, to a properly operating qualified law enforcement foundation within 30254 |
|---|
| 279 | | - | calendar days of its removal from the department's list of qualified law enforcement255 |
|---|
| 280 | | - | foundations.256 |
|---|
| 281 | | - | (k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount257 |
|---|
| 282 | | - | of qualified contributions that were utilized as deductions or exemptions from taxable258 |
|---|
| 283 | | - | income.259 |
|---|
| 284 | | - | (2) In no event shall the total amount of the tax credit under this Code section for a260 |
|---|
| 285 | | - | taxable year exceed the taxpayer's income tax liability. Any No unused tax credit shall261 |
|---|
| 286 | | - | be allowed the taxpayer against the succeeding three years' tax liability. No such credit262 |
|---|
| 287 | | - | shall be allowed the taxpayer against prior years' tax liability.263 |
|---|
| 288 | | - | (l) The commissioner shall promulgate rules and regulations necessary to implement and264 |
|---|
| 289 | | - | administer the provisions of this Code section."265 |
|---|
| 290 | | - | SECTION 3.266 |
|---|
| 291 | | - | This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years267 |
|---|
| 292 | | - | beginning on or after January 1, 2026.268 |
|---|
| 293 | | - | SECTION 4.269 |
|---|
| 294 | | - | All laws and parts of laws in conflict with this Act are repealed.270 |
|---|
| 295 | | - | H. B. 330 (SUB) |
|---|
| 296 | | - | - 11 - |
|---|
| 20 | + | revise provisions for income tax credits for contributions to law enforcement foundations;3 |
|---|
| 21 | + | to provide for related matters; to provide for an effective date and applicability; to repeal4 |
|---|
| 22 | + | conflicting laws; and for other purposes.5 |
|---|
| 23 | + | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 24 | + | SECTION 1.7 |
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| 25 | + | Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to8 |
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| 26 | + | imposition, rate, computation, exemptions, and credits for income taxes is amended by9 |
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| 27 | + | revising Code Section 48-7-29.25, relating to income tax credits for contributions to law10 |
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| 28 | + | enforcement foundations, as follows:11 |
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| 29 | + | "48-7-29.25.12 |
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| 30 | + | (a) As used in this Code section, the term:13 |
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| 31 | + | (1) 'Law enforcement foundation' means any domestic nonprofit corporation with the14 |
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| 32 | + | sole function of supporting one local |
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| 33 | + | law enforcement unit through a formal relationship15 |
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| 34 | + | recognized by such local law enforcement unit with one or more local law enforcement16 |
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| 35 | + | units or which provides support to law enforcement state wide and which maintains17 |
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| 36 | + | H. B. 330 |
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| 37 | + | - 1 - 25 LC 39 4582 |
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| 38 | + | nonprofit status under Section 501(c)(3) of the Internal Revenue Code and tax exempt |
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| 39 | + | 18 |
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| 40 | + | status under Code Section 48-7-25.19 |
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| 41 | + | (2) 'Local law enforcement unit' means any agency, office, or department of a county,20 |
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| 42 | + | municipality, or consolidated government of this state whose primary functions include21 |
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| 43 | + | the enforcement of criminal or traffic laws, preservation of public order, protection of life22 |
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| 44 | + | and property, or the prevention, detection, or investigation of crime. Such term shall23 |
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| 45 | + | include any sheriff's office in this state. Such term shall not include any agency, office,24 |
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| 46 | + | or department conducting similar functions for any court, state board, state authority,25 |
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| 47 | + | state law enforcement division or department, railroad police, or any unit appointed under26 |
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| 48 | + | the authority of Chapter 9 of Title 35 of the Official Code of Georgia Annotated.27 |
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| 49 | + | (3) 'Qualified contributions' means the preapproved contribution of funds by a taxpayer28 |
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| 50 | + | to a qualified law enforcement foundation under the terms and conditions of this Code29 |
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| 51 | + | section.30 |
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| 52 | + | (4) 'Qualified expenditures' means expenditures made by a qualified law enforcement31 |
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| 53 | + | foundation:32 |
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| 54 | + | (A)(i) For salary supplements paid no more than twice annually or training provided33 |
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| 55 | + | directly to law enforcement officers and other employees |
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| 56 | + | employed by the any local34 |
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| 57 | + | law enforcement unit affiliated with such qualified law enforcement foundation; or35 |
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| 58 | + | (ii) For the purchase, lease, maintenance, or improvement of equipment to be used36 |
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| 59 | + | by such officers or employees;37 |
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| 60 | + | (iii) For the purchase or lease of supplies and materials for technology updates,38 |
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| 61 | + | including computer hardware and software; or39 |
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| 62 | + | (iv) For the lease of facilities or purchase of goods or services to be used for the40 |
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| 63 | + | promotion of community engagement; or41 |
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| 64 | + | (B) To cover any costs incurred by the any local law enforcement unit affiliated with42 |
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| 65 | + | such law enforcement foundation for the operation of an emergency response team that43 |
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| 66 | + | H. B. 330 |
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| 67 | + | - 2 - 25 LC 39 4582 |
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| 68 | + | combines law enforcement officers and behavioral health specialists, provided that such |
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| 69 | + | 44 |
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| 70 | + | costs shall not include salaries or other regular compensation.45 |
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| 71 | + | (5) 'Qualified law enforcement foundation' means any law enforcement foundation that: |
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| 72 | + | 46 |
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| 73 | + | has been designated as the sole local law enforcement foundation for a single local law47 |
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| 74 | + | enforcement unit and has been certified48 |
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| 75 | + | (A) Has been certified and listed by the commissioner pursuant to subsection (d) of this49 |
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| 76 | + | Code section; and50 |
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| 77 | + | (B)(i) Has been designated as the law enforcement foundation for a local law51 |
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| 78 | + | enforcement unit or combination of neighboring local law enforcement units; or52 |
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| 79 | + | (ii) Is a law enforcement foundation which provides support to law enforcement state53 |
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| 80 | + | wide.54 |
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| 81 | + | (b)(1) The aggregate amount of tax credits allowed under this Code section shall not55 |
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| 82 | + | exceed $75 million per calendar year. Each qualified law enforcement foundation shall56 |
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| 83 | + | be limited to accepting $3 million per year of contributions made under this Code section.57 |
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| 84 | + | (2) Subject to the aggregate limit provided in paragraph (1) of this subsection for taxable58 |
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| 85 | + | years beginning on or after January 1, 2023, and ending on or before December 31, 2027,59 |
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| 86 | + | each taxpayer shall be allowed a credit against the tax imposed by this chapter for60 |
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| 87 | + | qualified contributions made by the taxpayer as follows:61 |
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| 88 | + | (A) In the case of a single individual or a head of household, the actual amount of62 |
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| 89 | + | qualified contributions made or $5,000.00 per tax year, whichever is less;63 |
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| 90 | + | (B) In the case of a married couple filing a joint return, the actual amount of qualified64 |
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| 91 | + | contributions made or $10,000.00 per tax year, whichever is less;65 |
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| 92 | + | (C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph66 |
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| 93 | + | notwithstanding, in the case of an individual taxpayer who is a member of a limited67 |
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| 94 | + | liability company duly formed under state law, a shareholder of a Subchapter 'S'68 |
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| 95 | + | corporation, or a partner in a partnership, the actual amount of qualified contributions69 |
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| 96 | + | it made or $10,000.00 per tax year, whichever is less; provided, however, that tax70 |
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| 97 | + | H. B. 330 |
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| 98 | + | - 3 - 25 LC 39 4582 |
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| 99 | + | credits pursuant to this paragraph shall only be allowed for the portion of the income |
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| 100 | + | 71 |
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| 101 | + | on which such tax was actually paid by such member of the limited liability company,72 |
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| 102 | + | shareholder of a Subchapter 'S' corporation, or partner in a partnership; or73 |
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| 103 | + | (D) A corporation or other entity not provided for in subparagraphs (A) through (C)74 |
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| 104 | + | of this paragraph shall be allowed a credit against the tax imposed by this chapter, for75 |
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| 105 | + | qualified contributions in an amount not to exceed the actual amount of qualified76 |
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| 106 | + | contributions made or 75 percent of such corporation's or other entity's income tax77 |
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| 107 | + | liability, whichever is less.78 |
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| 108 | + | (3) Nothing in this Code section shall be construed to limit the ability of a local law79 |
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| 109 | + | enforcement unit to receive gifts, grants, and other benefits from any source allowed by80 |
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| 110 | + | law; provided, however, that no local law enforcement unit shall, under this Code section,81 |
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| 111 | + | accept or receive more than $3 million in contributions in any calendar year.82 |
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| 112 | + | (c) The commissioner shall establish a page on the department's public |
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| 113 | + | website for the83 |
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| 114 | + | purpose of implementing this Code section. Such page shall contain, at a minimum:84 |
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| 115 | + | (1) The application and requirements to be certified as a qualified law enforcement85 |
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| 116 | + | foundation;86 |
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| 117 | + | (2) The current list of all qualified law enforcement foundations and their affiliate law87 |
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| 118 | + | enforcement units;88 |
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| 119 | + | (3) The total amount of tax credits remaining and available for preapproval for each year;89 |
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| 120 | + | (4) A web based method for taxpayers seeking the preapproval status for contributions;90 |
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| 121 | + | and91 |
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| 122 | + | (5) The information received by the department from each qualified law enforcement92 |
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| 123 | + | foundation pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv)93 |
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| 124 | + | of this Code section.94 |
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| 125 | + | (d) Any valid law enforcement foundation as a qualified law enforcement foundation shall95 |
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| 126 | + | be certified by the commissioner following the commissioner's receipt of a properly96 |
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| 127 | + | completed application and after the commissioner has confirmed that a single local law97 |
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| 128 | + | H. B. 330 |
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| 129 | + | - 4 - 25 LC 39 4582 |
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| 130 | + | enforcement unit has validly designated the applicant as its sole law enforcement98 |
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| 131 | + | foundation; provided, however, that such designation shall not be required for an applicant99 |
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| 132 | + | that provides support to law enforcement state wide. Such application shall be prescribed100 |
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| 133 | + | by the commissioner and shall include an agreement by the applicant to fully comply with101 |
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| 134 | + | the terms and conditions of this Code section.102 |
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| 135 | + | (e)(1) Prior to making a contribution to any qualified law enforcement foundation, the103 |
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| 136 | + | taxpayer shall electronically notify the department, in a manner specified by the104 |
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| 137 | + | commissioner, of the total amount of contribution that such taxpayer intends to make to105 |
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| 138 | + | such qualified law enforcement foundation.106 |
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| 139 | + | (2) Within 30 days after receiving a request for preapproval of contributions, the107 |
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| 140 | + | commissioner shall preapprove, deny, or prorate requested amounts on a first come, first108 |
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| 141 | + | served basis and shall provide notice to such taxpayer and the qualified law enforcement109 |
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| 142 | + | foundation of such preapproval, denial, or proration. Such notices shall not require any110 |
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| 143 | + | signed release or notarized approval by the taxpayer. The preapproval of contributions111 |
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| 144 | + | by the commissioner shall be based solely on the availability of tax credits subject to the112 |
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| 145 | + | limits established under paragraph (1) of subsection (b) of this Code section.113 |
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| 146 | + | (3) Within 60 days after receiving the preapproval notice issued by the commissioner114 |
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| 147 | + | pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved115 |
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| 148 | + | amount to the qualified law enforcement foundation or such preapproved contribution116 |
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| 149 | + | amount shall expire. The commissioner shall not include such expired amounts in117 |
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| 150 | + | determining the remaining amount available under the aggregate limit for the respective118 |
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| 151 | + | calendar year.119 |
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| 152 | + | (f)(1) Each qualified law enforcement foundation shall issue to each contributor making120 |
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| 153 | + | a contribution pursuant to this Code section a letter of confirmation of contribution,121 |
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| 154 | + | which shall include the taxpayer's name, address, tax identification number, the amount122 |
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| 155 | + | of the qualified contribution, the date of the qualified contribution, and the total amount123 |
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| 156 | + | of the credit allowed to the taxpayer.124 |
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| 157 | + | H. B. 330 |
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| 158 | + | - 5 - 25 LC 39 4582 |
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| 159 | + | (2) In order for a taxpayer to claim the tax credit allowed under this Code section, all |
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| 160 | + | 125 |
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| 161 | + | such applicable letters as provided for in paragraph (1) of this subsection shall be attached126 |
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| 162 | + | to the taxpayer's tax return. When the taxpayer files an electronic return such127 |
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| 163 | + | confirmation shall only be required to be electronically attached to the return if the128 |
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| 164 | + | Internal Revenue Service allows such attachments to be affixed and transmitted to the129 |
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| 165 | + | department. In any such event, the taxpayer shall maintain such confirmation and such130 |
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| 166 | + | confirmation shall only be made available to the commissioner upon request.131 |
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| 167 | + | (3) The commissioner shall allow tax credits for any preapproved contributions made to132 |
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| 168 | + | a local law enforcement foundation at the time the contributions were made if such133 |
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| 169 | + | foundation was a qualified law enforcement foundation at the time of the commissioner's134 |
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| 170 | + | preapproval of the contributions and the taxpayer has otherwise complied with this Code135 |
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| 171 | + | section.136 |
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| 172 | + | (g)(1) Each qualified law enforcement foundation shall annually submit to the137 |
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| 173 | + | department:138 |
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| 174 | + | (A) A complete copy of its IRS Form 990 and other applicable attachments, or for any139 |
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| 175 | + | qualified law enforcement foundation that is not required by federal law to file an IRS140 |
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| 176 | + | Form 990, such foundation shall submit to the commissioner |
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| 177 | + | equivalent information on141 |
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| 178 | + | a form prescribed by the commissioner; and142 |
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| 179 | + | (B) A report detailing the contributions received during the calendar year pursuant to143 |
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| 180 | + | this Code section on a date determined by, and on a form provided by, the144 |
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| 181 | + | commissioner which shall include:145 |
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| 182 | + | (i) The total number and dollar value of individual contributions and tax credits146 |
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| 183 | + | approved. Individual contributions shall include contributions made by those filing147 |
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| 184 | + | income tax returns as a single individual or head of household and those filing joint148 |
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| 185 | + | returns;149 |
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| 186 | + | (ii) The total number and dollar value of corporate contributions and tax credits150 |
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| 187 | + | approved;151 |
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| 188 | + | H. B. 330 |
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| 189 | + | - 6 - 25 LC 39 4582 |
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| 190 | + | (iii) The total number and dollar value of all qualified expenditures made; and |
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| 191 | + | 152 |
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| 192 | + | (iv) A list of contributors, including the dollar value of each contribution and the153 |
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| 193 | + | dollar value of each approved tax credit.154 |
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| 194 | + | (2) Except for the information published in accordance with paragraph (c) or (h) of this155 |
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| 195 | + | Code section, all information or reports relative to this Code section that were provided156 |
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| 196 | + | by qualified law enforcement foundations to the department shall be confidential taxpayer157 |
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| 197 | + | information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such158 |
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| 198 | + | information relates to the contributor or the qualified law enforcement foundation.159 |
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| 199 | + | (h) Each qualified law enforcement foundation shall publish on its public |
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| 200 | + | website a copy160 |
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| 201 | + | of its affiliated local law enforcement unit's prior year's annual budget containing the total161 |
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| 202 | + | amount of funds received from its local governing body. If a qualified law enforcement162 |
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| 203 | + | foundation does not maintain a public website, such information shall be otherwise made163 |
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| 204 | + | available by the qualified law enforcement foundation to the public upon request.164 |
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| 205 | + | (i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified165 |
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| 206 | + | contributions to a qualified law enforcement foundation pursuant to this Code section to166 |
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| 207 | + | any particular purpose or for the direct benefit of any particular individual.167 |
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| 208 | + | (2) A taxpayer that operates, owns, is affiliated with, or is a subsidiary of an association,168 |
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| 209 | + | organization, or other entity that contracts directly with a qualified law enforcement169 |
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| 210 | + | foundation or the any local law enforcement unit that is affiliated with a qualified law170 |
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| 211 | + | enforcement foundation shall not be eligible for tax credits allowed under this Code171 |
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| 212 | + | section for contributions made to such qualified law enforcement foundation.172 |
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| 213 | + | (3) In soliciting contributions, no person shall represent or direct that, in exchange for173 |
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| 214 | + | making qualified contributions to any qualified law enforcement foundation, a taxpayer174 |
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| 215 | + | shall receive any direct or particular benefit. The status as a qualified law enforcement175 |
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| 216 | + | foundation shall be revoked for any law enforcement foundation determined to be in176 |
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| 217 | + | violation of this paragraph and shall not be renewed for at least two years.177 |
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| 218 | + | H. B. 330 |
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| 219 | + | - 7 - 25 LC 39 4582 |
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| 220 | + | (j)(1) Qualified contributions shall only be used for qualified expenditures. Each |
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| 221 | + | 178 |
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| 222 | + | qualified law enforcement foundation shall maintain accurate and current records of all179 |
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| 223 | + | expenditures of qualified contributions and provide such records to the commissioner180 |
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| 224 | + | upon his or her request.181 |
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| 225 | + | (2) A qualified law enforcement foundation that fails to comply with any of the182 |
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| 226 | + | requirements under this Code section shall be given written notice by the department of183 |
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| 227 | + | such failure to comply by certified mail and shall have 90 days from the receipt of such184 |
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| 228 | + | notice to correct all deficiencies.185 |
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| 229 | + | (3) Upon failure of a qualified law enforcement foundation |
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| 230 | + | to correct all deficiencies186 |
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| 231 | + | within 90 days pursuant to the requirements of paragraph (2) of this subsection, the187 |
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| 232 | + | department shall revoke the law enforcement foundation's status as a qualified law188 |
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| 233 | + | enforcement foundation and such entity shall be immediately removed from the189 |
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| 234 | + | department's list of qualified law enforcement foundations. All applications for190 |
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| 235 | + | preapproval of tax credits for contributions to such law enforcement foundation under this191 |
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| 236 | + | Code section made on or after the date of such removal shall be rejected.192 |
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| 237 | + | (4) Each law enforcement foundation that has had its status revoked and has been193 |
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| 238 | + | delisted pursuant to this Code section, shall immediately cease all expenditures of funds194 |
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| 239 | + | received relative to this Code section, and shall transfer all of such funds that are not yet195 |
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| 240 | + | expended, to a properly operating qualified law enforcement foundation within 30196 |
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| 241 | + | calendar days of its removal from the department's list of qualified law enforcement197 |
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| 242 | + | foundations.198 |
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| 243 | + | (k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount199 |
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| 244 | + | of qualified contributions that were utilized as deductions or exemptions from taxable200 |
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| 245 | + | income.201 |
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| 246 | + | (2) In no event shall the total amount of the tax credit under this Code section for a202 |
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| 247 | + | taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be203 |
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| 248 | + | H. B. 330 |
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| 249 | + | - 8 - 25 LC 39 4582 |
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| 250 | + | allowed the taxpayer against the succeeding three years' tax liability. No such credit shall |
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| 251 | + | 204 |
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| 252 | + | be allowed the taxpayer against prior years' tax liability.205 |
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| 253 | + | (l) The commissioner shall promulgate rules and regulations necessary to implement and206 |
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| 254 | + | administer the provisions of this Code section."207 |
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| 255 | + | SECTION 2.208 |
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| 256 | + | This Act shall become effective upon its approval by the Governor or upon its becoming law209 |
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| 257 | + | without such approval and shall be applicable to all taxable years beginning on or after210 |
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| 258 | + | January 1, 2025.211 |
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| 259 | + | SECTION 3.212 |
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| 260 | + | All laws and parts of laws in conflict with this Act are repealed.213 |
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| 261 | + | H. B. 330 |
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| 262 | + | - 9 - |
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