2022 Georgia Code
Title 48 - Revenue and Taxation
Chapter 7 - Income Taxes
Article 2 - Imposition, Rate, Computation, Exemptions, and Credits
§ 48-7-29.20. [Effective Until January 1, 2023. See note.] Tax Credits for Contributions to Rural Hospital Organizations

1. As used in this Code section, the term:
   1. “Qualified rural hospital organization expense” means the contribution of funds by an individual or corporate taxpayer to a rural hospital organization for the direct benefit of such organization during the tax year for which a credit under this Code section is claimed.
   2. “Rural hospital organization” means an organization that is approved by the Department of Community Health pursuant to Code Section 31-8-9.1.
2. An individual taxpayer shall be allowed a credit against the tax imposed by this chapter for qualified rural hospital organization expenses as follows:
   1. In the case of a single individual or a head of household, the actual amount expended;
   2. In the case of a married couple filing a joint return, the actual amount expended; or
   3. In the case of an individual who is a member of a limited liability company duly formed under state law, a shareholder of a Subchapter “S” corporation, or a partner in a partnership, the amount expended; provided, however, that tax credits pursuant to this paragraph shall be allowed only for the portion of the income on which such tax was actually paid by such individual.

   (b.1) From January 1 to June 30 each taxable year, an individual taxpayer shall be limited in its qualified rural hospital organization expenses allowable for credit under this Code section, and the commissioner shall not approve qualified rural hospital organization expenses incurred from January 1 to June 30 each taxable year, which exceed the following limits:

3. A corporation or other entity shall be allowed a credit against the tax imposed by this chapter for qualified rural hospital organization expenses in an amount not to exceed the actual amount expended or 75 percent of the corporation’s income tax liability, whichever is less.
4. In no event shall the total amount of the tax credit under this Code section for a taxable year exceed the taxpayer’s income tax liability. Any unused tax credit shall be allowed the taxpayer against the succeeding five years’ tax liability. No such credit shall be allowed the taxpayer against prior years’ tax liability.
5. 1. In no event shall the aggregate amount of tax credits allowed under this Code section exceed $60 million per taxable year.
   2. 1. No more than $4 million of the aggregate limit established by paragraph (1) of this subsection shall be contributed to any individual rural hospital organization in any taxable year. From January 1 to June 30 each taxable year, the commissioner shall only preapprove contributions submitted by individual taxpayers in an amount not to exceed $2 million, and from corporate donors in an amount not to exceed $2 million. From July 1 to December 31 each taxable year, subject to the aggregate limit in paragraph (1) of this subsection and the individual rural hospital organization limit in this paragraph, the commissioner shall approve contributions submitted by individual taxpayers and corporations or other entities.
      2. In the event an individual or corporate donor desires to make a contribution to an individual rural hospital organization that has received the maximum amount of contributions for that taxable year, the Department of Community Health shall provide the individual or corporate donor with a list, ranked in order of financial need, as determined by the Department of Community Health, of rural hospital organizations still eligible to receive contributions for the taxable year.
      3. In the event that an individual or corporate donor desires to make a contribution to an unspecified or undesignated rural hospital organization, either directly to the department or through a third party that participates in soliciting, administering, or managing donations, such donation shall be attributed to the rural hospital organization ranked with the highest financial need that has not yet received the maximum amount of contributions for that taxable year, regardless of whether a third party has a contractual relationship or agreement with such rural hospital organization.
      4. Any third party that participates in soliciting, advertising, or managing donations shall provide the complete list of rural hospital organizations eligible to receive the tax credit provided pursuant to this Code section including their ranking in order of financial need as determined by the Department of Community Health pursuant to Code Section 31-8-9.1, to any potential donor regardless of whether a third party has a contractual relationship or agreement with such rural hospital organization.
   3. For purposes of paragraphs (1) and (2) of this subsection, a rural hospital organization shall notify a potential donor of the requirements of this Code section. Before making a contribution to a rural hospital organization, the taxpayer shall electronically notify the department, in a manner specified by the department, of the total amount of contribution that the taxpayer intends to make to the rural hospital organization. The commissioner shall preapprove or deny the requested amount within 30 days after receiving the request from the taxpayer and shall provide written notice to the taxpayer and rural hospital organization of such preapproval or denial which shall not require any signed release or notarized approval by the taxpayer. In order to receive a tax credit under this Code section, the taxpayer shall make the contribution to the rural hospital organization within 180 days after receiving notice from the department that the requested amount was preapproved. If the taxpayer does not comply with this paragraph, the commissioner shall not include this preapproved contribution amount when calculating the limits prescribed in paragraphs (1) and (2) of this subsection.
   4. 1. Preapproval of contributions by the commissioner shall be based solely on the availability of tax credits subject to the aggregate total limit established under paragraph (1) of this subsection and the individual rural hospital organization limit established under paragraph (2) of this subsection.
      2. Any taxpayer preapproved by the department pursuant to this subsection shall retain their approval in the event the credit percentage in this Code section is modified for the year in which the taxpayer was preapproved.
      3. Upon the rural hospital organization’s confirmation of receipt of donations that have been preapproved by the department, any taxpayer preapproved by the department pursuant to subsection (c) of this Code section shall receive the full benefit of the income tax credit established by this Code section even though the rural hospital organization to which the taxpayer made a donation does not properly comply with the reports or filings required by this Code section.
   5. Notwithstanding any laws to the contrary, the department shall not take any adverse action against donors to rural hospital organizations if the commissioner preapproved a donation for a tax credit prior to the date the rural hospital organization is removed from the Department of Community Health list pursuant to Code Section 31-8-9.1, and all such donations shall remain as preapproved tax credits subject only to the donor’s compliance with paragraph (3) of this subsection.
6. In order for the taxpayer to claim the tax credit under this Code section, a letter of confirmation of donation issued by the rural hospital organization to which the contribution was made shall be attached to the taxpayer’s tax return. However, in the event the taxpayer files an electronic return, such confirmation shall only be required to be electronically attached to the return if the Internal Revenue Service allows such attachments when the return is transmitted to the department. In the event the taxpayer files an electronic return and such confirmation is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia return, such confirmation shall be maintained by the taxpayer and made available upon request by the commissioner. The letter of confirmation of donation shall contain the taxpayer’s name, address, tax identification number, the amount of the contribution, the date of the contribution, and the amount of the credit.
7. No credit shall be allowed under this Code section with respect to any amount deducted from taxable net income by the taxpayer as a charitable contribution to a bona fide charitable organization qualified under Section 501(c)(3) of the Internal Revenue Code.
8. The commissioner shall be authorized to promulgate any rules and regulations necessary to implement and administer the provisions of this Code section.
9. The department shall post the following information in a prominent location on its website:
   1. All pertinent timelines relating to the tax credit, including, but not limited to:
      1. Beginning date when contributions can be submitted for preapproval by donors for the January 1 to June 30 period;
      2. Ending date when contributions can be submitted for preapproval by donors for the January 1 to June 30 period;
      3. Beginning date when contributions can be submitted for preapproval by donors for the July 1 to December 31 period;
      4. Ending date when contributions can be submitted for preapproval by donors for the July 1 to December 31 period; and
      5. Date by which preapproved contributions are required to be sent to the rural hospital organization;
   2. The list and ranking order of rural hospital organizations eligible to receive contributions established pursuant to paragraph (1) of subsection (b) of Code Section 31-8-9.1;
   3. A monthly progress report including:
      1. Total preapproved contributions to date by rural hospital organization;
      2. Total contributions received to date by rural hospital organization;
      3. Total aggregate amount of preapproved contributions made to date; and
      4. Aggregate amount of tax credits available; and
   4. A list of all preapproved contributions that were made to an unspecified or undesignated rural hospital organization and the rural hospital organizations that received such contributions.
10. The Department of Audits and Accounts shall annually conduct an audit of the tax credit program established under this Code section, including the amount and recipient rural hospital organization of all contributions made, all tax credits received by individual and corporate donors, and all amounts received by third parties that solicited, administered, or managed donations pertaining to this Code section and Code Section 31-8-9.1.
11. This Code section shall stand automatically repealed on December 31, 2024.

(1) In the case of a single individual or a head of household, $5,000.00;

(2) In the case of a married couple filing a joint return, $10,000.00; or

(3) In the case of an individual who is a member of a limited liability company duly formed under state law, a shareholder of a Subchapter “S” corporation, or a partner in a partnership, $10,000.00.

History. Code 1981, § 48-7-29.20 , enacted by Ga. L. 2016, p. 166, § 7/SB 258; Ga. L. 2017, p. 511, § 2/SB 180; Ga. L. 2018, p. 132, § 7/HB 769; Ga. L. 2019, p. 148, § 1-15/HB 186; Ga. L. 2019, p. 183, § 5/HB 321.

Delayed effective date.

Code Section 48-7-29.20 is set out twice in this Code. This version is effective until January 1, 2023. For version effective January 1, 2023, see the following version.

The 2019 amendments.

The first 2019 amendment, effective July 1, 2019, added subparagraph (e)(2)(C); substituted “180 days” for “60 days” in the next-to-last sentence of paragraph (e)(3); in subparagraph (e)(4)(B), substituted “this subsection” for “subsection (e) of this Code section” near the middle, and deleted “subsection (b) of” preceding “this Code section” in the middle; added subsections (i) and (j); redesignated former subsection (i) as present subsection (k), and, in subsection (k), substituted “2024” for “2021”. The second 2019 amendment, effective April 25, 2019, added subparagraphs (e)(2)(C) and (e)(2)(D); added subsections (i) and (j); redesignated former subsection (i) as present subsection (k); and substituted “2024” for “2021” in subsection (k).

Editor’s notes.

Ga. L. 2016, p. 166, § 8(b)/SB 258, not codified by the General Assembly, provides that: “Sections 1 and 7 of this Act shall be applicable to all taxable years beginning on or after January 1, 2017.”

Ga. L. 2017, p. 511, § 3/SB 180, not codified by the General Assembly, provides that the amendment of this Code section by that Act shall be applicable to all taxable years beginning on or after January 1, 2017.

Administrative rules and regulations.

Enforcement, Official Compilation of the Rules and Regulations of the State of Georgia, Department of Community Health, Healthcare Facility Regulation, Rules and Regulations for Hospital Transparency, § 111-8-41-.06.

Qualified rural hospital organization expense tax credit, Official Compilation of the Rules and Regulations of the State of Georgia, Department of Revenue, Income Tax Division, Returns and Collections, § 560-7-8-.57.

Law reviews.

For article, “Tackling the Social Determinants of Health: A Central for Providers,” see 33 Georgia St. U. L. Rev. 217 (2017).