| 1 | 1 | | 25 LC 59 0034 |
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| 2 | 2 | | House Bill 597 |
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| 3 | 3 | | By: Representatives Donatucci of the 105 |
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| 4 | 4 | | th |
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| 5 | 5 | | , McCollum of the 30 |
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| 6 | 6 | | th |
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| 7 | 7 | | , Schofield of the 63 |
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| 8 | 8 | | rd |
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| 9 | 9 | | , |
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| 10 | 10 | | Seabaugh of the 34 |
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| 11 | 11 | | th |
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| 12 | 12 | | , and Scott of the 76 |
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| 13 | 13 | | th |
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| 14 | 14 | | |
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| 15 | 15 | | A BILL TO BE ENTITLED |
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| 16 | 16 | | AN ACT |
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| 17 | 17 | | To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, |
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| 18 | 18 | | 1 |
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| 19 | 19 | | relating to imposition, rate, computation, exemptions, and credits relative to income taxes,2 |
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| 20 | 20 | | so as to enact the "Fire and Emergency Services Support Act"; to provide for tax credits for3 |
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| 21 | 21 | | certain contributions made by taxpayers to certain local fire rescue foundations; to provide4 |
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| 22 | 22 | | for an aggregate annual limit; to provide for terms and conditions; to provide for applications5 |
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| 23 | 23 | | and certifications; to provide for the revocation of qualified status; to provide for certain6 |
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| 24 | 24 | | penalties; to provide for confidentiality; to require annual reporting; to provide for rules and7 |
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| 25 | 25 | | regulations; to provide definitions; to provide for construction; to provide for a short title;8 |
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| 26 | 26 | | to provide for related matters; to provide for an effective date and applicability; to repeal9 |
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| 27 | 27 | | conflicting laws; and for other purposes.10 |
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| 28 | 28 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:11 |
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| 29 | 29 | | SECTION 1.12 |
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| 30 | 30 | | This Act shall be known and may be cited as the "Fire and Emergency Services Support13 |
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| 31 | 31 | | Act."14 |
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| 32 | 32 | | H. B. 597 |
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| 33 | 33 | | - 1 - 25 LC 59 0034 |
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| 34 | 34 | | SECTION 2. |
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| 35 | 35 | | 15 |
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| 36 | 36 | | Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to16 |
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| 37 | 37 | | imposition, rate, computation, exemptions, and credits relative to income taxes, is amended17 |
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| 38 | 38 | | by adding a new Code section to read as follows:18 |
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| 39 | 39 | | "48-7-29.27. |
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| 40 | 40 | | 19 |
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| 41 | 41 | | (a) As used in this Code section, the term:20 |
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| 42 | 42 | | (1) 'Fire rescue foundation' means any domestic nonprofit corporation with the sole21 |
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| 43 | 43 | | function of supporting one local fire rescue unit through a formal relationship recognized22 |
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| 44 | 44 | | by such local fire rescue unit and which maintains nonprofit status under23 |
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| 45 | 45 | | Section 501(c)(3) of the Internal Revenue Code and tax exempt status under Code24 |
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| 46 | 46 | | Section 48-7-25.25 |
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| 47 | 47 | | (2) 'Local fire rescue unit' means any agency, office, or department of a county,26 |
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| 48 | 48 | | municipality, or consolidated government of this state whose primary functions include27 |
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| 49 | 49 | | the protection of life and property against fire, explosions, hazardous materials, and other28 |
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| 50 | 50 | | hazards.29 |
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| 51 | 51 | | (3) 'Qualified contributions' means the preapproved contribution of funds by a taxpayer30 |
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| 52 | 52 | | to a qualified fire rescue foundation under the terms and conditions of this Code section.31 |
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| 53 | 53 | | (4) 'Qualified expenditures' means expenditures made by a qualified fire rescue32 |
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| 54 | 54 | | foundation:33 |
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| 55 | 55 | | (A)(i) For salary supplements or training provided directly to fire rescue personnel34 |
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| 56 | 56 | | employed by the local fire rescue unit affiliated with such qualified fire rescue35 |
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| 57 | 57 | | foundation; or36 |
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| 58 | 58 | | (ii) For the purchase, lease, maintenance, or improvement of equipment to be used37 |
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| 59 | 59 | | by such personnel; or38 |
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| 60 | 60 | | (B) To cover any costs incurred by the local fire rescue unit in collaborating with other39 |
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| 61 | 61 | | agencies to address emergency situations, provided that such costs shall not include40 |
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| 62 | 62 | | salaries or other regular compensation.41 |
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| 63 | 63 | | H. B. 597 |
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| 64 | 64 | | - 2 - 25 LC 59 0034 |
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| 65 | 65 | | (5) 'Qualified fire rescue foundation' means any fire rescue foundation that has been42 |
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| 66 | 66 | | designated as the sole local fire rescue foundation for a single local fire rescue unit and43 |
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| 67 | 67 | | has been certified and listed by the commissioner pursuant to subsection (d) of this Code44 |
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| 68 | 68 | | section.45 |
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| 69 | 69 | | (b)(1) The aggregate amount of tax credits allowed under this Code section shall not46 |
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| 70 | 70 | | exceed $75 million per calendar year. Each qualified fire rescue foundation shall be47 |
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| 71 | 71 | | limited to accepting $3 million per year of contributions made under this Code section.48 |
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| 72 | 72 | | (2) Subject to the aggregate limit provided in paragraph (1) of this subsection, each49 |
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| 73 | 73 | | taxpayer shall be allowed a credit against the tax imposed by this chapter for qualified50 |
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| 74 | 74 | | contributions made by the taxpayer as follows:51 |
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| 75 | 75 | | (A) In the case of a single individual or a head of household, the actual amount of52 |
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| 76 | 76 | | qualified contributions made or $5,000.00 per tax year, whichever is less;53 |
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| 77 | 77 | | (B) In the case of a married couple filing a joint return, the actual amount of qualified54 |
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| 78 | 78 | | contributions made or $10,000.00 per tax year, whichever is less;55 |
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| 79 | 79 | | (C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph56 |
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| 80 | 80 | | notwithstanding, in the case of an individual taxpayer who is a member of a limited57 |
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| 81 | 81 | | liability company duly formed under state law, a shareholder of a Subchapter 'S'58 |
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| 82 | 82 | | corporation, or a partner in a partnership, the actual amount of qualified contributions59 |
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| 83 | 83 | | it made or $10,000.00 per tax year, whichever is less; provided, however, that tax60 |
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| 84 | 84 | | credits pursuant to this paragraph shall only be allowed for the portion of the income61 |
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| 85 | 85 | | on which such tax was actually paid by such member of the limited liability company,62 |
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| 86 | 86 | | shareholder of a Subchapter 'S' corporation, or partner in a partnership; or63 |
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| 87 | 87 | | (D) A corporation or other entity not provided for in subparagraphs (A) through (C)64 |
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| 88 | 88 | | of this paragraph shall be allowed a credit against the tax imposed by this chapter, for65 |
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| 89 | 89 | | qualified contributions in an amount not to exceed the actual amount of qualified66 |
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| 90 | 90 | | contributions made or 75 percent of such corporation's or other entity's income tax67 |
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| 91 | 91 | | liability, whichever is less.68 |
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| 92 | 92 | | H. B. 597 |
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| 93 | 93 | | - 3 - 25 LC 59 0034 |
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| 94 | 94 | | (3) Nothing in this Code section shall be construed to limit the ability of a local fire69 |
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| 95 | 95 | | rescue unit to receive gifts, grants, and other benefits from any source allowed by law;70 |
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| 96 | 96 | | provided, however, that no local fire rescue unit shall, under this Code section, accept or71 |
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| 97 | 97 | | receive more than $3 million in contributions in any calendar year.72 |
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| 98 | 98 | | (c) The commissioner shall establish a web page on the department's public website for73 |
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| 99 | 99 | | the purpose of implementing this Code section. Such web page shall contain, at a74 |
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| 100 | 100 | | minimum:75 |
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| 101 | 101 | | (1) The application and requirements to be certified as a qualified fire rescue foundation;76 |
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| 102 | 102 | | (2) The current list of all qualified fire rescue foundations and their affiliate fire rescue77 |
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| 103 | 103 | | units;78 |
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| 104 | 104 | | (3) The total amount of tax credits remaining and available for preapproval for each year;79 |
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| 105 | 105 | | (4) A web based method for taxpayers seeking the preapproval status for contributions;80 |
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| 106 | 106 | | and81 |
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| 107 | 107 | | (5) The information received by the department from each qualified fire rescue82 |
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| 108 | 108 | | foundation pursuant to paragraph (1) of subsection (g), except for division (g)(1)(B)(iv)83 |
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| 109 | 109 | | of this Code section.84 |
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| 110 | 110 | | (d) Any qualified fire rescue foundation shall be certified by the commissioner following85 |
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| 111 | 111 | | the commissioner's receipt of a properly completed application and after the commissioner86 |
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| 112 | 112 | | has confirmed that a single local fire rescue unit has validly designated the applicant as its87 |
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| 113 | 113 | | sole fire rescue foundation. Such application shall be prescribed by the commissioner and88 |
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| 114 | 114 | | shall include an agreement by the applicant to fully comply with the terms and conditions89 |
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| 115 | 115 | | of this Code section.90 |
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| 116 | 116 | | (e)(1) Prior to making a contribution to any qualified fire rescue foundation, the taxpayer91 |
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| 117 | 117 | | shall electronically notify the department, in a manner specified by the commissioner, of92 |
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| 118 | 118 | | the total amount of contribution that such taxpayer intends to make to such qualified fire93 |
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| 119 | 119 | | rescue foundation.94 |
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| 120 | 120 | | H. B. 597 |
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| 121 | 121 | | - 4 - 25 LC 59 0034 |
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| 122 | 122 | | (2) Within 30 days after receiving a request for preapproval of contributions, the95 |
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| 123 | 123 | | commissioner shall preapprove, deny, or prorate requested amounts on a first come, first96 |
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| 124 | 124 | | served basis and shall provide notice to such taxpayer and the qualified fire rescue97 |
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| 125 | 125 | | foundation of such preapproval, denial, or proration. Such notices shall not require any98 |
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| 126 | 126 | | signed release or notarized approval by the taxpayer. The preapproval of contributions99 |
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| 127 | 127 | | by the commissioner shall be based solely on the availability of tax credits subject to the100 |
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| 128 | 128 | | limits established under paragraph (1) of subsection (b) of this Code section.101 |
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| 129 | 129 | | (3) Within 60 days after receiving the preapproval notice issued by the commissioner102 |
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| 130 | 130 | | pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved103 |
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| 131 | 131 | | amount to the qualified fire rescue foundation or such preapproved contribution amount104 |
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| 132 | 132 | | shall expire. The commissioner shall not include such expired amounts in determining105 |
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| 133 | 133 | | the remaining amount available under the aggregate limit for the respective calendar year.106 |
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| 134 | 134 | | (f)(1) Each qualified fire rescue foundation shall issue to each contributor a letter of107 |
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| 135 | 135 | | confirmation of contribution, which shall include the taxpayer's name, address, tax108 |
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| 136 | 136 | | identification number, the amount of the qualified contribution, the date of the qualified109 |
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| 137 | 137 | | contribution, and the total amount of the credit allowed to the taxpayer.110 |
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| 138 | 138 | | (2) In order for a taxpayer to claim the tax credit allowed under this Code section, all111 |
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| 139 | 139 | | such applicable letters as provided for in paragraph (1) of this subsection shall be attached112 |
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| 140 | 140 | | to the taxpayer's tax return. When the taxpayer files an electronic return such113 |
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| 141 | 141 | | confirmation shall only be required to be electronically attached to the return if the114 |
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| 142 | 142 | | Internal Revenue Service allows such attachments to be affixed and transmitted to the115 |
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| 143 | 143 | | department. In any such event, the taxpayer shall maintain such confirmation and such116 |
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| 144 | 144 | | confirmation shall only be made available to the commissioner upon request.117 |
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| 145 | 145 | | (3) The commissioner shall allow tax credits for any preapproved contributions made to118 |
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| 146 | 146 | | a local fire rescue foundation at the time the contributions were made if such foundation119 |
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| 147 | 147 | | was a qualified fire rescue foundation at the time of the commissioner's preapproval of120 |
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| 148 | 148 | | the contributions and the taxpayer has otherwise complied with this Code section.121 |
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| 149 | 149 | | H. B. 597 |
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| 150 | 150 | | - 5 - 25 LC 59 0034 |
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| 151 | 151 | | (g)(1) Each qualified fire rescue foundation shall annually submit to the department:122 |
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| 152 | 152 | | (A) A complete copy of its IRS Form 990 and other applicable attachments, or for any123 |
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| 153 | 153 | | qualified fire rescue foundation that is not required by federal law to file an IRS124 |
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| 154 | 154 | | Form 990, such foundation shall submit to the commissioner equivalent information on125 |
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| 155 | 155 | | a form prescribed by the commissioner; and126 |
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| 156 | 156 | | (B) A report detailing the contributions received during the calendar year pursuant to127 |
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| 157 | 157 | | this Code section on a date determined by, and on a form provided by, the128 |
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| 158 | 158 | | commissioner which shall include:129 |
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| 159 | 159 | | (i) The total number and dollar value of individual contributions and tax credits130 |
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| 160 | 160 | | approved. Individual contributions shall include contributions made by those filing131 |
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| 161 | 161 | | income tax returns as a single individual or head of household and those filing joint132 |
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| 162 | 162 | | returns;133 |
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| 163 | 163 | | (ii) The total number and dollar value of corporate contributions and tax credits134 |
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| 164 | 164 | | approved;135 |
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| 165 | 165 | | (iii) The total number and dollar value of all qualified expenditures made; and136 |
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| 166 | 166 | | (iv) A list of contributors, including the dollar value of each contribution and the137 |
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| 167 | 167 | | dollar value of each approved tax credit.138 |
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| 168 | 168 | | (2) Except for the information published in accordance with paragraph (c) or (h) of this139 |
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| 169 | 169 | | Code section, all information or reports relative to this Code section that were provided140 |
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| 170 | 170 | | by qualified fire rescue foundations to the department shall be confidential taxpayer141 |
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| 171 | 171 | | information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such142 |
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| 172 | 172 | | information relates to the contributor or the qualified fire rescue foundation.143 |
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| 173 | 173 | | (h) Each qualified fire rescue foundation shall publish on its public website a copy of its144 |
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| 174 | 174 | | affiliated local fire rescue unit's prior year's annual budget containing the total amount of145 |
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| 175 | 175 | | funds received from its local governing body. If a qualified fire rescue foundation does not146 |
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| 176 | 176 | | maintain a public website, such information shall be otherwise made available by the147 |
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| 177 | 177 | | qualified fire rescue foundation to the public upon request.148 |
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| 178 | 178 | | H. B. 597 |
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| 179 | 179 | | - 6 - 25 LC 59 0034 |
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| 180 | 180 | | (i)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified149 |
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| 181 | 181 | | contributions to any particular purpose or for the direct benefit of any particular150 |
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| 182 | 182 | | individual.151 |
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| 183 | 183 | | (2) A taxpayer that operates, owns, is affiliated with, or is a subsidiary of an association,152 |
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| 184 | 184 | | organization, or other entity that contracts directly with a qualified fire rescue foundation153 |
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| 185 | 185 | | or the local fire rescue unit that is affiliated with a qualified fire rescue foundation shall154 |
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| 186 | 186 | | not be eligible for tax credits allowed under this Code section for contributions made to155 |
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| 187 | 187 | | such qualified fire rescue foundation.156 |
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| 188 | 188 | | (3) In soliciting contributions, no person shall represent or direct that, in exchange for157 |
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| 189 | 189 | | making qualified contributions to any qualified fire rescue foundation, a taxpayer shall158 |
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| 190 | 190 | | receive any direct or particular benefit. The status as a qualified fire rescue foundation159 |
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| 191 | 191 | | shall be revoked for any fire rescue foundation determined to be in violation of this160 |
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| 192 | 192 | | paragraph and shall not be renewed for at least two years.161 |
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| 193 | 193 | | (j)(1) Qualified contributions shall only be used for qualified expenditures. Each162 |
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| 194 | 194 | | qualified fire rescue foundation shall maintain accurate and current records of all163 |
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| 195 | 195 | | expenditures of qualified contributions and provide such records to the commissioner164 |
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| 196 | 196 | | upon his or her request.165 |
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| 197 | 197 | | (2) A qualified fire rescue foundation that fails to comply with any of the requirements166 |
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| 198 | 198 | | under this Code section shall be given written notice by the department of such failure167 |
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| 199 | 199 | | to comply by certified mail and shall have 90 days from the receipt of such notice to168 |
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| 200 | 200 | | correct all deficiencies.169 |
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| 201 | 201 | | (3) Upon failure to correct all deficiencies within 90 days, the department shall revoke170 |
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| 202 | 202 | | the fire rescue foundation's status as a qualified fire rescue foundation and such entity171 |
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| 203 | 203 | | shall be immediately removed from the department's list of qualified fire rescue172 |
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| 204 | 204 | | foundations. All applications for preapproval of tax credits for contributions to such fire173 |
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| 205 | 205 | | rescue foundation under this Code section made on or after the date of such removal shall174 |
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| 206 | 206 | | be rejected.175 |
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| 207 | 207 | | H. B. 597 |
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| 208 | 208 | | - 7 - 25 LC 59 0034 |
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| 209 | 209 | | (4) Each fire rescue foundation that has had its status revoked and has been delisted176 |
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| 210 | 210 | | pursuant to this Code section, shall immediately cease all expenditures of funds received177 |
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| 211 | 211 | | relative to this Code section, and shall transfer all of such funds that are not yet expended,178 |
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| 212 | 212 | | to a properly operating qualified fire rescue foundation within 30 calendar days of its179 |
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| 213 | 213 | | removal from the department's list of qualified fire rescue foundations.180 |
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| 214 | 214 | | (k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount181 |
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| 215 | 215 | | of qualified contributions that were utilized as deductions or exemptions from taxable182 |
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| 216 | 216 | | income.183 |
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| 217 | 217 | | (2) In no event shall the total amount of the tax credit under this Code section for a184 |
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| 218 | 218 | | taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be185 |
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| 219 | 219 | | allowed the taxpayer against the succeeding three years' tax liability. No such credit shall186 |
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| 220 | 220 | | be allowed the taxpayer against prior years' tax liability.187 |
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| 221 | 221 | | (l) The commissioner shall promulgate rules and regulations necessary to implement and188 |
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| 222 | 222 | | administer the provisions of this Code section."189 |
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| 223 | 223 | | SECTION 3.190 |
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| 224 | 224 | | This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years191 |
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| 225 | 225 | | beginning on or after January 1, 2026.192 |
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| 226 | 226 | | SECTION 4.193 |
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| 227 | 227 | | All laws and parts of laws in conflict with this Act are repealed.194 |
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| 228 | 228 | | H. B. 597 |
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| 229 | 229 | | - 8 - |
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