Georgia 2025-2026 Regular Session

Georgia House Bill HB357 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	25 LC 50 1195S
2		-	The House Committee on Ways and Means offers the following substitute to HB 357:
	1	+	25 LC 62 0083
	2	+	House Bill 357
	3	+	By: Representative Franklin of the 160
	4	+	th
	5	+
3	6		A BILL TO BE ENTITLED
4	7		AN ACT
5		-	To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,1
	8	+	To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
	9	+	1
6	10		relating to imposition, rate, computation, exemption, and credits, so as to provide for tax2
7	11		credits for certain contributions made by taxpayers to certain mortgage loan originators; to3
8	12		provide for definitions; to provide for an aggregate annual limit; to provide for terms and4
9	13		conditions; to provide for applications and certifications; to provide for the revocation of5
10	14		qualified status; to provide for certain penalties; to provide for the promulgation of rules and6
11	15		regulations; to provide for related matters; to provide for an effective date and applicability;7
12	16		to repeal conflicting laws; and for other purposes.8
13	17		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
14	18		SECTION 1.10
15	19		Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to11
16	20		imposition, rate, computation, exemptions, and credits, is amended by adding a new Code12
17	21		section to read as follows:13
18		-	"48-7-29.27.14
	22	+	"48-7-29.27.
	23	+	14
19	24		(a) As used in this Code section, the term:15
20		-	H. B. 357 ~~(SUB)~~
21		-	- 1 - 25 LC ~~50 1195S~~
	25	+	H. B. 357
	26	+	- 1 - 25 LC 62 0083
22	27		(1) 'Exempted mortgage loan originator' means any mortgage loan originator, as such16
23	28		term is set forth in paragraph (22) of Code Section 7-1-1000, that is exempt from17
24	29		licensure pursuant to paragraph (13) of subsection (a) of Code Section 7-1-1001.18
25	30		(2) 'Qualified contribution' means the preapproved contribution of funds made during the19
26	31		taxable year by a taxpayer to a qualified organization under the terms and conditions of20
27	32		this Code section.21
28	33		(3) 'Qualified organization' means any exempted mortgage loan originator that has been22
29	34		certified and listed by the commissioner pursuant to subsection (d) of this Code section.23
30	35		(b)(1) The aggregate amount of tax credits allowed under this Code section shall not24
31		-	exceed $10 million per calendar year. No qualified organization shall accept25
	36	+	exceed $20 million per calendar year. No qualified organization shall accept25
32	37		contributions pursuant to this Code section which exceed $2 million per year.26
33	38		(2) Subject to the aggregate limit provided in paragraph (1) of this subsection, from27
34	39		January 1, 2026, through December 31, 2030, each taxpayer shall be allowed a credit28
35	40		against the tax imposed by this chapter for qualified contributions made on or after29
36	41		January 1, 2026, as follows:30
37	42		(A) In the case of a single individual or a head of household, the actual amount of31
38	43		qualified contributions made or $5,000.00 per year, whichever is less;32
39	44		(B) In the case of a married couple filing a joint return, the actual amount of qualified33
40	45		contributions made or $10,000.00 per year, whichever is less;34
41	46		(C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph35
42	47		notwithstanding, in the case of an individual taxpayer who is a member of a limited36
43	48		liability company duly formed under state law, a shareholder of a Subchapter 'S'37
44	49		corporation, or a partner in a partnership, the actual amount of qualified contributions38
45	50		it made or $10,000.00, whichever is less; provided, however, that tax credits pursuant39
46	51		to this paragraph shall be allowed only for the portion of the income on which such tax40
47	52		was actually paid by such member, shareholder, or partner; or41
48		-	H. B. 357 ~~(SUB)~~
49		-	- 2 - 25 LC ~~50 1195S~~
	53	+	H. B. 357
	54	+	- 2 - 25 LC 62 0083
50	55		(D) In the case of a corporation or other entity not provided for in subparagraphs (A)42
51		-	through (C) of this paragraph, the actual amount of qualified contributions made or ~~3043~~
	56	+	through (C) of this paragraph, the actual amount of qualified contributions made or 7543
52	57		percent of such corporation's or other entity's income tax liability, whichever is less.44
53	58		(c) The commissioner shall establish an application process for certifying exempted45
54	59		mortgage loan originators as qualified organizations and shall publicly maintain a list of46
55	60		such qualified organizations.47
56	61		(d)(1) Prior to making a contribution to any qualified organization, the taxpayer shall48
57	62		electronically request preapproval from the department, in a manner specified by the49
58	63		commissioner, of the total amount of the contribution that such taxpayer intends to make.50
59	64		(2) Within 30 days after receiving such a request, the commissioner shall preapprove,51
60	65		deny, or prorate requested amounts on a first come, first served basis and shall provide52
61	66		notice to such taxpayer and the qualified organization of such preapproval, denial, or53
62	67		proration. Such notices shall not require any signed release or notarized approval by the54
63		-	taxpayer. The commissioner shall base such preapproval on the availability of ~~tax credits55~~
64		-	subject to the aggregate limit established under paragraph (1) of subsection (b) ~~of this56~~
65		-	Code section.57
	68	+	taxpayer. The commissioner shall base such preapproval solely on the availability of tax55
	69	+	credits subject to the aggregate limit established under paragraph (1) of subsection (b) of56
	70	+	this Code section.57
66	71		(3) Within 60 days after receiving such preapproval notice, the taxpayer shall contribute58
67	72		the preapproved amount to the qualified organization or such preapproved contribution59
68	73		amount shall expire. The commissioner shall not include such expired amounts in60
69	74		determining the remaining amount available under the aggregate limit for the respective61
70	75		calendar year.62
71		-	(4)(A) For the period beginning on July 1 and ending on December 31 of each year,63
72		-	to the extent that the aggregate amount of tax credits authorized by subsection (b) of64
73		-	this Code section has not been reached, the commissioner shall preapprove, deny, or65
74		-	prorate additional requested amounts on a first come, first served basis and shall66
75		-	provide notice to such taxpayer and the qualified organization of such preapproval,67
76		-	denial, or proration.68
77		-	H. B. 357 (SUB)
78		-	- 3 - 25 LC 50 1195S
79		-	(B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code69
80		-	section during the period provided for in subparagraph (A) of this paragraph shall only70
81		-	be allowed such credit in an amount that shall not exceed 95 percent of the amount71
82		-	otherwise allowed pursuant to this Code section.72
83		-	(e)(1) Each qualified organization shall issue to each contributor a letter of confirmation73
84		-	of contribution, which shall include the taxpayer's name, address, tax identification74
85		-	number, the amount of the qualified contribution, the date of the qualified contribution,75
86		-	and the total amount of the credit allowed to the taxpayer.76
87		-	(2) To claim the tax credit allowed under this Code section, the taxpayer shall attach to77
88		-	the taxpayer's tax return the letter provided for in paragraph (1) of this subsection. If the78
89		-	taxpayer files an electronic return, such letter shall be required to be electronically79
90		-	attached to the return only if the Internal Revenue Service allows such attachments to be80
91		-	affixed and transmitted to the department. In the event the taxpayer files an electronic81
92		-	tax return and such confirmation is not attached because the Internal Revenue Service82
93		-	does not, at the time of such electronic filing, allow electronic attachments to the Georgia83
94		-	tax return, such confirmation shall be maintained by the taxpayer and made available84
95		-	upon request by the commissioner.85
96		-	(3) The commissioner shall allow tax credits for any preapproved contributions made to86
97		-	an exempted mortgage loan originator if such exempted mortgage loan originator was a87
98		-	qualified organization at the time of the commissioner's preapproval of the contributions88
99		-	and the taxpayer has otherwise complied with this Code section.89
100		-	(f)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified90
101		-	contributions to any particular purpose or for the direct benefit of any particular91
102		-	individual.92
103		-	(2) A taxpayer that operates, owns, or is a subsidiary of an association, organization, or93
104		-	other entity that contracts directly with a qualified organization shall not be eligible for94
105		-	H. B. 357 (SUB)
106		-	- 4 - 25 LC 50 1195S
107		-	tax credits allowed under this Code section for contributions made to such qualified95
108		-	organization.96
109		-	(3) In soliciting contributions, no person shall represent or direct that, in exchange for97
110		-	making qualified contributions to any qualified organization, a taxpayer shall receive any98
111		-	direct or particular benefit. The status as a qualified organization shall be revoked for any99
112		-	qualified organization determined to be in violation of this paragraph and shall not be100
113		-	renewed for at least two years.101
114		-	(g)(1) No qualified organization shall use more than 10 percent of qualified contributions102
115		-	for administrative expenses or overhead. Each qualified organization shall maintain103
116		-	accurate and current records of all expenditures of such funds and provide such records104
117		-	to the commissioner upon request.105
118		-	(2) A qualified organization that fails to comply with any of the requirements of this106
119		-	Code section shall be given written notice by the department of such failure to comply107
120		-	by certified mail and shall have 90 days from the receipt of such notice to correct all108
121		-	deficiencies.109
122		-	(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke110
123		-	the exempted mortgage loan originator's status as a qualified organization and such entity111
124		-	shall be immediately removed from the department's list of qualified organizations.112
125		-	(4) Each exempted mortgage loan originator that has had its status revoked pursuant to113
126		-	this Code section shall immediately cease all expenditures of funds received pursuant to114
127		-	this Code section and shall transfer all of such funds that are not yet expended to a115
128		-	properly operating qualified organization within 30 calendar days of such revocation.116
129		-	(h)(1) No credit shall be allowed under this Code section to a taxpayer for any amount117
130		-	of qualified contributions that were utilized as deductions or exemptions from taxable118
131		-	income.119
132		-	(2) In no event shall the total amount of the tax credit under this Code section for a120
133		-	taxable year exceed the taxpayer's income tax liability. No unused tax credit shall be121
134		-	H. B. 357 (SUB)
135		-	- 5 - 25 LC 50 1195S
136		-	allowed the taxpayer against succeeding years' tax liability. No such credit shall be122
137		-	allowed the taxpayer against prior years' tax liability.123
138		-	(i) The commissioner shall promulgate rules and regulations necessary to implement and124
139		-	administer the provisions of this Code section."125
140		-	SECTION 2.126
141		-	This Act shall become effective on January 1, 2026, and shall be applicable to taxable years127
142		-	beginning on or after such date.128
143		-	SECTION 3.129
144		-	All laws and parts of laws in conflict with this Act are repealed.130
145		-	H. B. 357 (SUB)
146		-	- 6 -
	76	+	(e)(1) Each qualified organization shall issue to each contributor a letter of confirmation63
	77	+	of contribution, which shall include the taxpayer's name, address, tax identification64
	78	+	number, the amount of the qualified contribution, the date of the qualified contribution,65
	79	+	and the total amount of the credit allowed to the taxpayer.66
	80	+	(2) To claim the tax credit allowed under this Code section, the taxpayer shall attach to67
	81	+	the taxpayer's tax return the letter provided for in paragraph (1) of this subsection. If the68
	82	+	H. B. 357
	83	+	- 3 - 25 LC 62 0083
	84	+	taxpayer files an electronic return, such letter shall be required to be electronically69
	85	+	attached to the return only if the Internal Revenue Service allows such attachments to be70
	86	+	affixed and transmitted to the department. In the event the taxpayer files an electronic71
	87	+	tax return and such confirmation is not attached because the Internal Revenue Service72
	88	+	does not, at the time of such electronic filing, allow electronic attachments to the Georgia73
	89	+	tax return, such confirmation shall be maintained by the taxpayer and made available74
	90	+	upon request by the commissioner.75
	91	+	(3) The commissioner shall allow tax credits for any preapproved contributions made to76
	92	+	an exempted mortgage loan originator if such exempted mortgage loan originator was a77
	93	+	qualified organization at the time of the commissioner's preapproval of the contributions78
	94	+	and the taxpayer has otherwise complied with this Code section.79
	95	+	(f)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified80
	96	+	contributions to any particular purpose or for the direct benefit of any particular81
	97	+	individual.82
	98	+	(2) A taxpayer that operates, owns, or is a subsidiary of an association, organization, or83
	99	+	other entity that contracts directly with a qualified organization shall not be eligible for84
	100	+	tax credits allowed under this Code section for contributions made to such qualified85
	101	+	organization.86
	102	+	(3) In soliciting contributions, no person shall represent or direct that, in exchange for87
	103	+	making qualified contributions to any qualified organization, a taxpayer shall receive any88
	104	+	direct or particular benefit. The status as a qualified organization shall be revoked for any89
	105	+	qualified organization determined to be in violation of this paragraph and shall not be90
	106	+	renewed for at least two years.91
	107	+	(g)(1) No qualified organization shall use more than 10 percent of qualified contributions92
	108	+	for administrative expenses or overhead. Each qualified organization shall maintain93
	109	+	accurate and current records of all expenditures of such funds and provide such records94
	110	+	to the commissioner upon request.95
	111	+	H. B. 357
	112	+	- 4 - 25 LC 62 0083
	113	+	(2) A qualified organization that fails to comply with any of the requirements of this96
	114	+	Code section shall be given written notice by the department of such failure to comply97
	115	+	by certified mail and shall have 90 days from the receipt of such notice to correct all98
	116	+	deficiencies.99
	117	+	(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke100
	118	+	the exempted mortgage loan originator's status as a qualified organization and such entity101
	119	+	shall be immediately removed from the department's list of qualified organizations.102
	120	+	(4) Each exempted mortgage loan originator that has had its status revoked pursuant to103
	121	+	this Code section shall immediately cease all expenditures of funds received pursuant to104
	122	+	this Code section and shall transfer all of such funds that are not yet expended to a105
	123	+	properly operating qualified organization within 30 calendar days of such revocation.106
	124	+	(h)(1) No credit shall be allowed under this Code section to a taxpayer for any amount107
	125	+	of qualified contributions that were utilized as deductions or exemptions from taxable108
	126	+	income.109
	127	+	(2) In no event shall the total amount of the tax credit under this Code section for a110
	128	+	taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be111
	129	+	allowed the taxpayer against the succeeding five years' tax liability. No such credit shall112
	130	+	be allowed the taxpayer against prior years' tax liability.113
	131	+	(i) The commissioner shall promulgate rules and regulations necessary to implement and114
	132	+	administer the provisions of this Code section."115
	133	+	SECTION 2.116
	134	+	This Act shall become effective on January 1, 2026, and shall be applicable to taxable years117
	135	+	beginning on or after such date.118
	136	+	SECTION 3.119
	137	+	All laws and parts of laws in conflict with this Act are repealed.120
	138	+	H. B. 357
	139	+	- 5 -