25 LC 50 1195S
The House Committee on Ways and Means offers the following substitute to HB 357:
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, exemption, and credits, so as to provide for tax2
credits for certain contributions made by taxpayers to certain mortgage loan originators; to3
provide for definitions; to provide for an aggregate annual limit; to provide for terms and4
conditions; to provide for applications and certifications; to provide for the revocation of5
qualified status; to provide for certain penalties; to provide for the promulgation of rules and6
regulations; to provide for related matters; to provide for an effective date and applicability;7
to repeal conflicting laws; and for other purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to11
imposition, rate, computation, exemptions, and credits, is amended by adding a new Code12
section to read as follows:13
"48-7-29.27.14
(a) As used in this Code section, the term:15
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(1) 'Exempted mortgage loan originator' means any mortgage loan originator, as such16
term is set forth in paragraph (22) of Code Section 7-1-1000, that is exempt from17
licensure pursuant to paragraph (13) of subsection (a) of Code Section 7-1-1001.18
(2) 'Qualified contribution' means the preapproved contribution of funds made during the19
taxable year by a taxpayer to a qualified organization under the terms and conditions of20
this Code section.21
(3) 'Qualified organization' means any exempted mortgage loan originator that has been22
certified and listed by the commissioner pursuant to subsection (d) of this Code section.23
(b)(1) The aggregate amount of tax credits allowed under this Code section shall not24
exceed $10 million per calendar year. No qualified organization shall accept25
contributions pursuant to this Code section which exceed $2 million per year.26
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection, from27
January 1, 2026, through December 31, 2030, each taxpayer shall be allowed a credit28
against the tax imposed by this chapter for qualified contributions made on or after29
January 1, 2026, as follows:30
(A) In the case of a single individual or a head of household, the actual amount of31
qualified contributions made or $5,000.00 per year, whichever is less;32
(B) In the case of a married couple filing a joint return, the actual amount of qualified33
contributions made or $10,000.00 per year, whichever is less;34
(C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph35
notwithstanding, in the case of an individual taxpayer who is a member of a limited36
liability company duly formed under state law, a shareholder of a Subchapter 'S'37
corporation, or a partner in a partnership, the actual amount of qualified contributions38
it made or $10,000.00, whichever is less; provided, however, that tax credits pursuant39
to this paragraph shall be allowed only for the portion of the income on which such tax40
was actually paid by such member, shareholder, or partner; or41
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(D) In the case of a corporation or other entity not provided for in subparagraphs (A)42
through (C) of this paragraph, the actual amount of qualified contributions made or 3043
percent of such corporation's or other entity's income tax liability, whichever is less.44
(c) The commissioner shall establish an application process for certifying exempted45
mortgage loan originators as qualified organizations and shall publicly maintain a list of46
such qualified organizations.47
(d)(1) Prior to making a contribution to any qualified organization, the taxpayer shall48
electronically request preapproval from the department, in a manner specified by the49
commissioner, of the total amount of the contribution that such taxpayer intends to make.50
(2) Within 30 days after receiving such a request, the commissioner shall preapprove,51
deny, or prorate requested amounts on a first come, first served basis and shall provide52
notice to such taxpayer and the qualified organization of such preapproval, denial, or53
proration. Such notices shall not require any signed release or notarized approval by the54
taxpayer. The commissioner shall base such preapproval on the availability of tax credits55
subject to the aggregate limit established under paragraph (1) of subsection (b) of this56
Code section.57
(3) Within 60 days after receiving such preapproval notice, the taxpayer shall contribute58
the preapproved amount to the qualified organization or such preapproved contribution59
amount shall expire. The commissioner shall not include such expired amounts in60
determining the remaining amount available under the aggregate limit for the respective61
calendar year.62
(4)(A) For the period beginning on July 1 and ending on December 31 of each year,63
to the extent that the aggregate amount of tax credits authorized by subsection (b) of64
this Code section has not been reached, the commissioner shall preapprove, deny, or65
prorate additional requested amounts on a first come, first served basis and shall66
provide notice to such taxpayer and the qualified organization of such preapproval,67
denial, or proration.68
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(B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code69
section during the period provided for in subparagraph (A) of this paragraph shall only70
be allowed such credit in an amount that shall not exceed 95 percent of the amount71
otherwise allowed pursuant to this Code section.72
(e)(1) Each qualified organization shall issue to each contributor a letter of confirmation73
of contribution, which shall include the taxpayer's name, address, tax identification74
number, the amount of the qualified contribution, the date of the qualified contribution,75
and the total amount of the credit allowed to the taxpayer.76
(2) To claim the tax credit allowed under this Code section, the taxpayer shall attach to77
the taxpayer's tax return the letter provided for in paragraph (1) of this subsection. If the78
taxpayer files an electronic return, such letter shall be required to be electronically79
attached to the return only if the Internal Revenue Service allows such attachments to be80
affixed and transmitted to the department. In the event the taxpayer files an electronic81
tax return and such confirmation is not attached because the Internal Revenue Service82
does not, at the time of such electronic filing, allow electronic attachments to the Georgia83
tax return, such confirmation shall be maintained by the taxpayer and made available84
upon request by the commissioner.85
(3) The commissioner shall allow tax credits for any preapproved contributions made to86
an exempted mortgage loan originator if such exempted mortgage loan originator was a87
qualified organization at the time of the commissioner's preapproval of the contributions88
and the taxpayer has otherwise complied with this Code section.89
(f)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified90
contributions to any particular purpose or for the direct benefit of any particular91
individual.92
(2) A taxpayer that operates, owns, or is a subsidiary of an association, organization, or93
other entity that contracts directly with a qualified organization shall not be eligible for94
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tax credits allowed under this Code section for contributions made to such qualified95
organization.96
(3) In soliciting contributions, no person shall represent or direct that, in exchange for97
making qualified contributions to any qualified organization, a taxpayer shall receive any98
direct or particular benefit. The status as a qualified organization shall be revoked for any99
qualified organization determined to be in violation of this paragraph and shall not be100
renewed for at least two years.101
(g)(1) No qualified organization shall use more than 10 percent of qualified contributions102
for administrative expenses or overhead. Each qualified organization shall maintain103
accurate and current records of all expenditures of such funds and provide such records104
to the commissioner upon request.105
(2) A qualified organization that fails to comply with any of the requirements of this106
Code section shall be given written notice by the department of such failure to comply107
by certified mail and shall have 90 days from the receipt of such notice to correct all108
deficiencies.109
(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke110
the exempted mortgage loan originator's status as a qualified organization and such entity111
shall be immediately removed from the department's list of qualified organizations.112
(4) Each exempted mortgage loan originator that has had its status revoked pursuant to113
this Code section shall immediately cease all expenditures of funds received pursuant to114
this Code section and shall transfer all of such funds that are not yet expended to a115
properly operating qualified organization within 30 calendar days of such revocation.116
(h)(1) No credit shall be allowed under this Code section to a taxpayer for any amount117
of qualified contributions that were utilized as deductions or exemptions from taxable118
income.119
(2) In no event shall the total amount of the tax credit under this Code section for a120
taxable year exceed the taxpayer's income tax liability. No unused tax credit shall be121
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allowed the taxpayer against succeeding years' tax liability. No such credit shall be122
allowed the taxpayer against prior years' tax liability.123
(i) The commissioner shall promulgate rules and regulations necessary to implement and124
administer the provisions of this Code section."125
SECTION 2.126
This Act shall become effective on January 1, 2026, and shall be applicable to taxable years127
beginning on or after such date.128
SECTION 3.129
All laws and parts of laws in conflict with this Act are repealed.130
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