5. Charity Care Tax Credit

 

A BILL TO BE ENTITLED

AN ACT

To amend Titles 31 and 48 of the Official Code of Georgia Annotated, relating to health and

revenue and taxation, respectively, so as to establish charity care organizations to provide

health care services to the uninsured in this state; to provide for definitions; to provide for

tax credits for contributions to charity care organizations; to provide for the amount, nature,

limits, and procedures for such tax credits; to provide for related matters; to repeal

conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Title 31 of the Official Code of Georgia Annotated, relating to health, is amended by adding

a new Code section to Article 1 of Chapter 8, relating to hospital care for the indigent

generally, to read as follows:

"

31-8-9.1. 12

(a) As used in this Code section, the term 'charity health care organization' means a

nonprofit corporation supporting 50 or more charity health care clinics providing health

care services to the uninsured and qualified as exempt from federal income taxation under

Section 501(c)(3) of the Internal Revenue Code.

(b) The Department of Public Health shall approve and maintain a list of charity health

care organizations eligible for the purposes of the charity health care tax credit.

"

SECTION 2.

Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is

amended by adding a new Code section to Article 2 of Chapter 7, relating to imposition, rate,

and computation of income taxes and exemptions, to read as follows:

"

48-7-29.18.

(a) As used in this Code section, the term:

    (1) 'Charity health care organization' means a nonprofit corporation supporting 50 or

more charity health care clinics providing health care services to the uninsured and

qualified as exempt from federal income taxation under Section 501(c)(3) of the Internal

Revenue Code and approved by the Department of Public Health pursuant to Code

Section 31-8-9.1.

    (2) 'Qualified charity health care expense' means the expenditure of funds by the

taxpayer during the tax year for which a credit under this Code section is claimed and

allowed.

(b) An individual taxpayer shall be allowed a credit against the tax imposed by this chapter

for qualified charity health care expenses as follows:

    (1) In the case of a single individual or a head of household, the actual amount expended

or $1,000.00 per tax year, whichever is less; or 36

    (2) In the case of a married couple filing a joint return, the actual amount expended or 37

$2,500.00 per tax year, whichever is less.

(c) A corporation or other entity shall be allowed a credit against the tax imposed by this

chapter for qualified charity health care expenses in an amount not to exceed the actual

amount expended or 75 percent of the corporation's income tax liability, whichever is less.

(d) 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.

(e)(1) In no event shall the aggregate amount of tax credits allowed under this Code

section exceed $2 million per tax year for the three years beginning January 1, 2013,

except that any unused aggregate credits shall carry over until December 31, 2018, at

which time any unused aggregate tax credits shall expire.

    (2) The commissioner shall allow the tax credits on a first come, first served basis.

    (3) For the purposes of paragraph (1) of this subsection, a charity health care

organization shall notify a potential donor of the requirements of this Code section.

Before making a contribution to a charity health care organization, the taxpayer shall

notify the department of the total amount of contributions that the taxpayer intends to

make to the charity health care 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 the charity health care 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 charity health care organization within 60

days after receiving notice from the department that the requested amount was

shall not include this preapproved contribution amount when calculating the limit

prescribed in paragraph (1) of this subsection. The department shall establish a

web-based donation approval process to implement this subsection.

    (4) 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. The department shall maintain an ongoing, current list

on its website of the amount of tax credits available under this Code section.

    (5) Notwithstanding any laws to the contrary, the department shall not take any adverse

action against donors to charity health care organizations if the commissioner

preapproved a donation for a tax credit prior to the date the charity health care

organization is removed from the Department of Public 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.

(f) In order for the taxpayer to claim the charity health care organization tax credit under

this Code section, a letter of confirmation of donation issued by the charity health care

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 data 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.

(g) 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 health care organization qualified under Section 501(c)(3) of the Internal

Revenue Code.

(h) The commissioner shall be authorized to promulgate any rules and regulations

necessary to implement and administer the tax provisions of this Code section.

"

SECTION 3.

All laws and parts of laws in conflict with this Act are repealed.

 

See filed bill attached below
 
 
 
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Ronald Bachman,
Feb 28, 2012, 6:15 AM
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