Three Sensational Tax Credits Available to Residents of the Peach State

The Georgia General Assembly recently announced new state tax credits for tax year 2023, opening the door to additional tax savings opportunities for families and businesses within the state. This article will provide a high-level summary of the key details of three specific newly enacted credits generated by the Fostering Success Act, the LESS Crime Act, and the Georgia HEART Hospital Program.

 

Qualified Foster Child Donation Credit

This tax credit was a product of the Fostering Success Act (O.C.G.A. §48-7-29.24) and permits Georgia taxpayers to claim a tax credit for their donations to specific nonprofits registered with the Division of Family and Children Services. Tax credits are granted on a dollar-for-dollar basis, and maximum credit amounts are as follows: $2,500 for single filers, $5,000 for married filers, $5,000 for Partnerships and S-Corporations, and up to 10% of state income tax liability for C-Corporations. The statewide maximum donation limit for this program is $20 million annually. Funds are used by certified organizations to provide support to foster youth between the ages of 16 and 25. This may include financial assistance toward college or technical school tuition, housing, medical, or transportation costs.

 

Taxpayers interested in applying for this credit must:

• Obtain pre-approval from the Georgia Department of Revenue.
• Donate directly to any of the qualifying foster child support organizations subsequent to receiving approval. Instructions for obtaining pre-approval and donating can be found HERE.

 

Qualified Law Enforcement Donation Credit

This tax credit was created by the Law Enforcement Strategic Support (LESS) Crime Act (O.C.G.A. §48-7-29.25). It allows Georgia taxpayers to claim a tax credit for their donations to law enforcement foundations on a dollar-for-dollar basis. Maximum credit amounts are as follows: $5,000 for single filers, $10,000 for married filers, $10,000 for Partnerships and S-Corporations, and up to 75% of state income tax liability for C-Corporations. There is a statewide maximum donation limit of $75 million per year. The purpose of the law, which received overwhelming bi-partisan support, is to use funds to better train officers and to establish a mental health co-responder program. Such a program would enable officers to respond appropriately and safely to folks with behavioral and mental health conditions and/or intellectual and developmental disabilities.

 

Taxpayers interested in applying for this credit must:

• Obtain pre-approval from the Georgia Department of Revenue.
• Donate directly to any of the qualifying law enforcement agencies subsequent to receiving approval. The instructions for obtaining pre-approval and donating can be found HERE.

 

Qualified Rural Hospital Organization Expense Credit

This tax credit was enacted through the Helping Enhance Access to Rural Treatment (HEART) Hospital Program (O.C.G.A. §48-7-29.20). It grants Georgia taxpayers the ability to claim a tax credit for their support of specific qualified rural hospitals. Tax credits are once again granted on a dollar-for-dollar basis and maximum credit amounts are as follows: $5,000 for single filers, $10,000 for married filers, $10,000 for Partnerships and S-Corporations, and up to 75% of state income tax liability for C-Corporations. The annual statewide maximum donation limit is $75 million. Funds go directly to Georgia’s rural hospitals that are facing a financial crisis resulting from demographic, economic, and healthcare industry challenges. These immense obstacles jeopardize the access of rural Georgians to adequate health care.

 

Taxpayers interested in applying for this credit must:

• Obtain pre-approval from the Georgia HEART Hospital Program. Here is the application.
• Donate directly to any of the qualifying hospitals subsequent to receiving approval.

 

Note that all three of these credits are nonrefundable, but any unused portion can be carried forward for up to five years. It is also important that all relevant documentation (pre-approval notices and corresponding donation receipts) should be provided to your tax accountant come tax time. Participation in one of these three benevolent tax credit programs is a terrific way for Georgia residents to broaden their charitable endeavors and materially alleviate their state tax liability.

 

Should you have additional questions, please contact Jeff Audi at [email protected].