HB136: HB136 Income tax; contributions to foster child support organizations; expand tax credit

25 HB 136/AP House Bill 136 (AS PASSED HOUSE AND SENATE) By: Representatives Newton of the 127th, Blackmon of the 146th, Rhodes of the 124th, Cox of the 28th, Prince of the 132nd, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to1 income taxes, so as to revise and create new tax credits relate d to children; to increase the2 state tax credit for certain child and dependent care expenses; to create new tax credits for3 individuals with children under the age of six, for employers t hat pay certain child care4 expenses, and for insurance companies against insurance premium tax liability for5 contributions to qualified organizations that support foster ch ildren and justice involved6 youth; to provide for terms, conditions, limitations, and procedures for such credits; to revise7 a tax credit for contributions to foster child support organiza tions; to expand the8 organizations that qualify for such contributions; to allow such organizations to include as9 qualified expenditures certain services for justice involved youth; to provide for the services10 that are qualified expenditures; to provide for reporting requi rements; to provide for11 certifying and decertifying qualified organizations; to provide for information sharing and12 limitations thereof; to provide for definitions; to provide for rules and regulations; to provide13 for a sunset; to provide for related matters; to provide for effective dates and applicability;14 to repeal conflicting laws; and for other purposes.15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:16 H. B. 136 - 1 - 25 HB 136/AP PART I17 SECTION 1-1.18 Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,19 is amended by revising Code Section 48-7-29.10, relating to tax credits for qualified child20 and dependent care expenses, as follows:21 "48-7-29.10.22 (a) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-2023 for qualified child and dependent care expenses. Such credit s hall be determined by24 applying a percentage to The amount of such credit shall be equal to 50 percent of the25 amount of the credit provided for in Section 21 of the Internal Revenue Code which is26 claimed and allowed pursuant to the Internal Revenue Code. Such percentage shall be:27 (1) Ten percent for all taxable years beginning on or after January 1, 2006, and prior to28 January 1, 2007;29 (2) Twenty percent for all taxable years beginning on or after January 1, 2007, and prior30 to January 1, 2008; and31 (3) Thirty percent for all taxable years beginning on or after January 1, 2008.32 (b) In no event shall the total amount of the tax credit under this Code section for a taxable33 year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed34 to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax35 credit shall be allowed the taxpayer against prior years' tax liability.36 (c) The commissioner shall be authorized to promulgate any rul es and regulations37 necessary to implement and administer this Code section."38 SECTION 1-2.39 Said chapter is further amended by adding a new Code section to read as follows:40 H. B. 136 - 2 - 25 HB 136/AP "48-7-29.27.41 (a) As used in this Code section, the term 'qualifying child' shall have the same meaning42 as set forth in Section 24(c) of the Internal Revenue Code, provided that such child has not43 yet attained age six.44 (b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed45 a credit against the tax imposed by Code Section 48-7-20 in an amount equal to $250.0046 for each qualifying child of the taxpayer.47 (c) In no event shall more than one taxpayer be allowed the tax credit granted under this48 Code section for the same qualifying child. In the case of parents or legal guardians who49 do not file income taxes jointly for any reason, the child shall be the qualifying child for50 only one parent or legal guardian, which shall be the parent o r legal guardian who had51 custody of the qualifying child for more than one-half of the tax year in question; provided,52 however, that the noncustodial parent or legal guardian may claim the credit if:53 (1) A court of competent jurisdiction has unconditionally awar ded, in writing, the54 noncustodial parent or legal guardian the tax credit authorized under this Code section,55 and such parent or legal guardian attaches a copy of the court order with his or her tax56 return; or57 (2) The noncustodial parent or legal guardian attaches a copy of a written declaration58 made by the custodial parent or legal guardian of a qualifying child that he or she assigns59 the credit to the noncustodial parent or legal guardian and wil l not claim the credit60 allowed under this Code section with respect to such child for such tax year.61 (d) Notwithstanding the provisions of subsection (b) of this Code section, in the case of62 any taxable nonresident or part-year resident whose tax was prorated as provided by Code63 Section 48-7-85, the amount of the credit determined pursuant to such subsection shall be64 prorated based on the ratio of income taxable to this state as properly reported on Schedule65 3, Line 9 of the Georgia Form 500 for the taxable year.66 H. B. 136 - 3 - 25 HB 136/AP (e) In no event shall the total amount of the tax credit under this Code section for a taxable67 year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed68 to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax69 credit shall be allowed the taxpayer against prior years' tax liability.70 (f) The commissioner shall be authorized to promulgate rules and regulations necessary71 to implement and administer the provisions of this Code section."72 SECTION 1-3.73 Said chapter is further amended by adding a new Code section to read as follows:74 "48-7-29.28.75 (a) As used in this Code section, the term:76 (1) 'Child care facility' means a child care learning center or family child care learning77 home that is permitted, licensed, or commissioned by the Department of Early Care and78 Learning pursuant to Chapter 1A of Title 20.79 (2) 'Eligible child care payments for employees' means payments:80 (A) Made directly to a child care facility in the name and for t h e b e n e f i t o f a n81 employee whose child is enrolled in such facility and is under the age of six;82 (B) Which total at least $1,000.00 per taxable year for each employee for which such83 payments are made; and84 (C) That are made for an employee in addition to, and not in l ieu of, any other85 compensation and benefits for such employee.86 (b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed87 a credit against the tax imposed under this article for eligibl e child care payments for88 employees in an amount:89 (1) Equal to $500.00 per child for which such payments are made per taxable year; or90 (2) Equal to $1,000.00 per child for which such payments are m ade if it is the first91 taxable year in which the taxpayer provided eligible child care payments for employees92 H. B. 136 - 4 - 25 HB 136/AP and prior to such taxable year the taxpayer did not pay for, re imburse for, or otherwise93 subsidize the costs of child care for employees.94 (c) The aggregate amount of tax credits allowed pursuant to th is Code section shall not95 exceed $20 million per year.96 (d) In no event shall the total amount of the tax credit under this Code section for a taxable97 year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed98 to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax99 credit shall be allowed the taxpayer against prior years' tax liability.100 (e) A taxpayer seeking to claim a tax credit pursuant to this Code section shall submit an101 application to the department for preapproval of such tax credit in the manner specified by102 the department. The department shall preapprove such application within 30 days based103 on the order in which properly completed applications were submitted. In the event that104 two or more applications were submitted on the same day and the amount of funds105 available will not be sufficient to fully fund the amount reque sted, the department shall106 prorate the available funds between or among the applicants.107 (f) The commissioner shall promulgate any rules and regulations necessary to implement108 and administer the provisions of this Code section.109 (g) This Code section shall stand repealed and reserved on December 31, 2030."110 PART II111 SECTION 2-1.112 Said chapter is further amended by revising Code Section 48-7-29.24, relating to tax credits113 for contributions to foster child support organizations, as follows:114 "48-7-29.24.115 (a) As used in this Code section, the term:116 (1) 'Aging foster children' means:117 H. B. 136 - 5 - 25 HB 136/AP (A) Foster children aged 16 through 18 that would benefit based on projected status at118 age 18, as determined by the division; and119 (B) Former foster children up to and including age 21, or age 25 if legally possible,120 aged 16 through 25 who have not been adopted or reunited with families were in foster121 care for at least six months after reaching age 14.122 (2) 'Aging-out program' means a program with the primary function of supporting aging123 foster children and justice involved youth.124 (2.1) 'Business enterprise' means any insurance company or the headquarters of any125 insurance company required to pay the tax provided for in Code Section 33-8-4.126 (3) 'Division' means the Division of Family and Children Services of the Department of127 Human Services.128 (4) 'Foster child support organization' means:129 (A) The aging-out program of the Technical College System of Georgia Foundation;130 (B) The aging-out program of the University System of Georgia Foundation, provided131 that such program is certified by the Governor's Office of Planning and Budget as an132 aging-out program; or133 (C) Any domestic nonprofit corporation which maintains nonprof it status under134 Section 501(c)(3) of the Internal Revenue Code and tax exempt s tatus under Code135 Section 48-7-25, that has the primary function of:136 (i) Operating an aging-out program that primarily supports aging foster children or137 operating as or supporting a Georgia licensed child-placing age ncy or licensed138 child-caring institution; or139 (ii) Disbursing funds directly to one or more of the entities identified in140 subparagraphs (A) or (B) or division (C)(i) of this paragraph.141 (4.1) 'Justice involved youth' means youth aged 18 through 25 who:142 H. B. 136 - 6 - 25 HB 136/AP (A) Were previously or are currently committed to the Department of Juvenile Justice143 pursuant to a court order as authorized by paragraph (11) of su bsection (a) of Code144 Section 15-11-601; and145 (B) As a result of such commitment, have been previously place d or are currently146 placed in a nonsecure facility or community setting.147 (4.2) 'Mentorship services' means support services directly provided to an aging foster148 child or justice involved youth by a mentor, such as role modeling, informal counseling,149 guiding, motivating, and sharing time together.150 (5) 'Qualified contributions' means the preapproved contribution of funds made during151 the taxable year by a taxpayer or a business enterprise to a qualified organization under152 the terms and conditions of this Code section.153 (6) 'Qualified expenditures' means expenditures made by a qualified organization for the154 following purposes; provided, however, that such term shall not include any expenditures155 for which the qualified organization has received or is eligible to receive reimbursement156 from the division:157 (A) The costs associated with tuition waivers granted pursuant to Code Section158 20-3-660;159 (B) Wraparound services for individuals aging foster children and justice involved160 youth who are:161 (1) Enrolled in attending a public or private postsecondary educational institution162 under a waiver granted pursuant to Code Section 20-3-660; or163 (2) Enrolled in a program to obtain a high school diploma or its equivalent;164 (3) Enrolled in a recognized vocational school; or165 (4) Participating in a registered apprenticeship program, provided that the participant166 and the organization for which the participant is an apprentice document that the167 participant is compliant with the rules of the apprenticeship program; or168 H. B. 136 - 7 - 25 HB 136/AP (C) Mentorship services provided to aging foster children, and justice involved youth;169 provided, however, that such expenditures shall not include: 170 (1) Compensation for a single mentor which exceeds no mentor shall be compensated 171 in excess of $100.00 per month for an aging foster child or justice involved youth or172 $500.00 $1,200.00 per year for any aging foster child or justice involved youth; or173 (2) Payments made to employees of a qualified organization who perform duties174 other than providing mentorship services for the organization.175 (7) 'Qualified organization' means a foster child support orga nization that has been176 certified and listed by the division pursuant to subsection (d) of this Code section.177 (8) 'Wraparound services' means services provided directly to aging foster children or178 justice involved youth to support their education through high school completion,179 vocational, and postsecondary education services, housing services, vocation s ervices,180 medical services, counseling services, mentorship services, nut rition services,181 transportation services, or daily living essentials and clothing, and up to $150.00 $200.00182 per month in direct cash payments for use on personal necessities.183 (b)(1) The aggregate amount of tax credits allowed under this Code section shall not184 exceed $20 million per for calendar year 2025. For calendar years 2026 and after, the185 aggregate amount of tax credits allowed under this Code section shall not exceed $30186 million per calendar year, and no more than $10 million of such aggregate amount shall187 be allowed for business enterprises.188 (2) Subject to the aggregate limit provided in paragraph (1) o f this subsection and the189 limitations of subsection subsections (b.1), (b.2), and (k) of this Code section, each:190 (A) Taxpayer taxpayer shall be allowed a credit against the tax imposed by this chapter191 for qualified contributions made by the taxpayer on or after January 1, 2023, as follows:192 (A)(i) In the case of a single individual or a head of household, the actual amount of193 qualified contributions made;194 H. B. 136 - 8 - 25 HB 136/AP (B)(ii) In the case of a married couple filing a joint return, the ac tual amount of195 qualified contributions made;196 (C)(iii) Anything to the contrary contained in subparagraph (A) or (B) division (i) or197 (ii) of this paragraph subparagraph notwithstanding, in the case of an individual198 taxpayer who is a member of a limited liability company duly formed under state law,199 a shareholder of a Subchapter 'S' corporation, or a partner in a partnership, the actual200 amount of qualified contributions it made; provided, however, t hat tax credits201 pursuant to this paragraph shall only be allowed for the portio n of the income on202 which such tax was actually paid by such member of the limited liability company,203 shareholder of a Subchapter 'S' corporation, or partner in a partnership; or204 (D)(iv) In the case of a A corporation or other entity not provided for in205 subparagraphs (A) divisions (i) through (C) (iii) of this paragraph shall be allowed a206 credit against the tax imposed by this chapter, for qualified contributions in an amount207 not to exceed subparagraph, the actual amount of qualified contributions made; and208 (B) Business enterprise shall be allowed a credit against the tax imposed by Code209 Section 33-8-4 in an amount equal to its qualified contributions.210 (b.1) For the period beginning on January 1 and ending on June 30 of each year, an211 individual a taxpayer shall not be allowed a credit for contributions, and the commissioner212 shall not preapprove any contributions, that exceed the following limits:213 (1) In the case of a single individual or a head of household, $2,500.00;214 (2) In the case of a married couple filing a joint return, $5,000.00;215 (3) In the case of an individual who is a member of a limited liability company duly216 formed under state law, a shareholder of a Subchapter 'S' corpo ration, or a partner in a217 partnership, $5,000.00; or218 (4) In the case of a corporation or other entity not provided for in paragraphs (1) through219 (3) of this subsection, 10 30 percent of such entity's income tax liability.220 H. B. 136 - 9 - 25 HB 136/AP (b.2) For the period beginning on July 1 and ending on December 31 of each year, to the221 extent that the aggregate amounts of tax credits authorized by subsection (b) of this Code222 section have not been reached, the commissioner shall preapprov e, deny, or prorate223 additional requested amounts on a first come, first served basis and shall provide notice to224 such taxpayer and the qualified organization of such preapproval, denial, or proration.225 (b.3) A taxpayer that is preapproved for a tax credit allowed pursuant to this Code section226 and that does not make a qualified contribution of the total preapproved amount shall be227 allowed such credit in an amount not to exceed 95 percent of the amount of the qualified228 contribution actually made by the taxpayer.229 (c) Not later than October 1, 2022, the The commissioner shall establish a page on the230 department's public website for the purpose of implementing this Code section. Such page231 shall contain, at a minimum:232 (1) A link to the division's web based application for certifi cation as a qualified233 organization as provided for in subsection (d) of this Code section;234 (2) The current list of all qualified organizations;235 (3) The total amount of tax credits remaining and available for preapproval for each year;236 (4) A web based method for taxpayers or business enterprises seeking the preapproval237 status for contributions; and238 (5) The information received by the department from each quali fied organization239 pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv) of this Code240 section.241 (d)(1) The division shall establish and maintain a web based application process for the242 purpose of certifying foster child support organizations as qualified organizations. At a243 minimum, such application created by the division shall include an agreement submitted244 by the applicant to fully comply with the terms and conditions of this Code section.245 (2) The (A) Subject to the requirements of this subsection, the division shall certify any246 valid foster child support organization as a qualified organiza tion upon successful247 H. B. 136 - 10 - 25 HB 136/AP completion of such application process and shall decertify an o rganization that fails to248 maintain the requirements to be a qualified organization or that the division determines249 to have violated any other law.250 (B) For any foster child support organization that is not a Ge orgia licensed251 child-placing agency or licensed child-caring institution or that meets the definition of252 such term only as set forth in division (a)(4)(C)(ii) of this Code section to be certified253 as a qualified organization, such organization shall provide do cumentation254 demonstrating that for a period of at least two calendar years prior to the submission of255 its application, the organization has operated an aging-out pro gram and, during that256 period, has provided services to at least 100 aging foster chil dren or justice involved257 youth.258 (C) After receiving certification pursuant to this subsection, each qualified organization259 other than a Georgia licensed child-placing agency or licensed child-caring institution260 shall annually demonstrate to the division's satisfaction that it continues to maintain the261 requirements to be a qualified organization, and shall annually submit to the division262 a copy of such organization's most recent annual audit.263 (3) The division shall certify any foster child support organization operating as a Georgia264 licensed child-placing agency or licensed child-caring institut ion as a qualified265 organization within ten days of receipt of a written request or application.266 (4) The division shall accept a first round of applications fo r certification as qualified267 organizations by October 1, 2022, and shall certify and notify such applicants of the268 division's decision on or before November 30, 2022. Thereafter t h e division shall269 establish a process for rolling applications and certifications consistent with the270 requirements of this Code section.271 (e)(1) Prior to making a contribution to any qualified organiz ation, the taxpayer or272 business enterprise shall electronically notify the department, in a manner specified by273 H. B. 136 - 11 - 25 HB 136/AP the commissioner, of the total amount of contribution that such taxpayer or business274 enterprise intends to make to such qualified organization.275 (2) Within 30 days after receiving a request for preapproval o f contributions, the276 commissioner shall preapprove, deny, or prorate requested amounts on a first come, first277 served basis and shall provide notice to such taxpayer or busin ess enterprise and the278 qualified organization of such preapproval, denial, or proration. Such notices shall not279 require any signed release or notarized approval by the taxpayer or business enterprise. 280 The preapproval of contributions by the commissioner shall be b ased solely on the281 availability of tax credits subject to the aggregate total limit established under paragraph282 (1) of subsection (b) of this Code section.283 (3) Within 60 days after receiving the preapproval notice issu ed by the commissioner284 pursuant to paragraph (2) of this subsection, the taxpayer or b usiness enterprise shall285 contribute the preapproved amount to the qualified organization or such preapproved286 contribution amount shall expire. The commissioner shall not i nclude such expired287 amounts in determining the remaining amount available under the aggregate limit for the288 respective calendar year.289 (f)(1) Each qualified organization shall issue to each contributor a letter of confirmation290 of contribution, which shall include the taxpayer's or business enterprise's name, address,291 tax identification number, the amount of the qualified contribu tion, the date of the292 qualified contribution, and the total amount of the credit allo wed to the taxpayer or293 business enterprise.294 (2)(A) In order for a taxpayer or business enterprise to claim the tax credit allowed295 under this Code section, all such applicable letters as provided for in paragraph (1) of296 this subsection shall be attached to the taxpayer's tax return or a business enterprise's297 tax return provided for in Code Section 33-8-6.298 (B) If When the taxpayer files an electronic return, such confirmation shall only be299 required to be electronically attached to the return if the Int ernal Revenue Service300 H. B. 136 - 12 - 25 HB 136/AP allows such attachments to be affixed and transmitted to the department. In any such301 event, the taxpayer shall maintain such confirmation and such confirmation shall only302 be made available to the commissioner upon request.303 (C) With respect to a business enterprise's tax return provide d for in Code304 Section 33-8-6, the Commissioner of Insurance is authorized to promulgate rules and305 regulations regarding the manner in which such letters of confi rmation of donations306 shall be filed in the case of tax returns filed electronically.307 (3) The commissioner shall allow tax credits for any preapproved contributions made to308 a qualified organization at the time the contributions were made if such organization was309 a qualified organization at the time of the commissioner's preapproval of the contributions310 and the taxpayer or business enterprise has otherwise complied with this Code section.311 (g)(1) Each qualified organization shall annually submit to the department no later than312 May 15 July 15 of each year:313 (A) A complete copy of its IRS Form 990 including applicable attachments, or for any314 qualified organization that is not required by federal law to file an IRS Form 990, such315 organization shall submit to the commissioner equivalent inform ation on a form316 prescribed by the commissioner; provided, however, that, if the organization's IRS317 Form 990 is not prepared by the filing deadline, the organizati on shall provide such318 form at the same time it submits such form to the Internal Revenue Service; and319 (B) A report detailing the contributions received during the calendar year pursuant to320 this Code section on a date determined by, and on a form provid ed by, the321 commissioner which shall include:322 (i) The total number and dollar value of individual contributi ons and tax credits323 approved. Individual contributions shall include contributions made by those filing324 income tax returns as a single individual or head of household and those filing joint325 returns;326 H. B. 136 - 13 - 25 HB 136/AP (ii) The total number and dollar value of corporate contributi ons and tax credits327 approved;328 (iii) The total number and dollar value of all qualified expenditures made; and329 (iv) A list of contributors, including the dollar value of eac h contribution and the330 dollar value of each approved tax credit; and331 (v) An accounting of the funds withheld from qualified contributions demonstrating332 that no more than 20 percent of such funds were withheld from q ualified333 expenditures, as required by subparagraph (j)(1)(A) of this Code section.334 (2) Except for the information published in accordance with subsection (c) of this Code335 section, all information or reports relative to this Code secti on that were provided by336 qualified organizations to the department shall be confidential taxpayer information,337 governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whethe r such information338 relates to the contributor or the qualified organization.339 (h) By April 1 of each year, each qualified organization shall publicly post on its public340 website in a prominent place:341 (1) A a copy of its prior year's annual budget financials containing the total amount of342 funds received from all sources relative to the amount of quali fied contributions it343 received and the total amount and a description of how such contributions were utilized.;344 and345 (2) A certification, signed by the chief executive officer of the qualified organization and346 attested to by an independent accounting firm, which substantia lly complies with the347 following statement:348 'I hereby certify that:349 (A) The organization has materially complied with the requirem ents of350 subparagraph (j)(1)(A) of O.C.G.A. Section 48-7-29.24 in that no more than 20 percent351 of qualified contributions received by [the qualified organizat ion] were retained by,352 withheld by, or otherwise paid to the organization; and353 H. B. 136 - 14 - 25 HB 136/AP (B) The description of how [the qualified organization] utilize d the qualified354 contributions is true and correct.'355 (i)(1) A taxpayer or business enterprise shall not be allowed to designate or direct the356 taxpayer's or business enterprise's qualified contributions to any particular purpose or for357 the direct benefit of any particular individual.358 (2) A taxpayer or business enterprise that operates, owns, or is a subsidiary of an359 association, organization, or other entity that contracts direc tly with a qualified360 organization shall not be eligible for tax credits allowed unde r this Code section for361 contributions made to such qualified organization.362 (3) In soliciting contributions, no person shall represent or direct that, in exchange for363 making qualified contributions to any qualified organization, a taxpayer or business364 enterprise shall receive any direct or particular benefit. The status as a qualified365 organization shall be revoked for any qualified organization determined to be in violation366 of this paragraph and shall not be renewed for at least two years.367 (j)(1)(A) Each qualified organization shall use at least 80 percent of the funds received368 by it from qualified contributi ons to make qualified expenditur es. Each qualified369 organization shall maintain accurate and current records of all expenditures of such370 funds and provide such records to the commissioner upon his or her request. In no371 event shall a qualified organization retain for its own use or apply to its overhead or372 administrative expenses more than 20 percent of the funds recei ved pursuant to this373 Code section.374 (B) No foster child support organization that meets only the definition of such term as375 provided in division (a)(4)(C)(ii) of this Code section shall retain more than 2.5 percent376 of qualified contributions for itself for any reason and shall only serve to pass all of its377 qualified contributions to one or mo re qualified organizations that are foster child378 support organizations as such term is defined in subparagraphs (a)(4)(A), (a)(4)(B), or379 division (a)(4)(C)(i) of this Code section.380 H. B. 136 - 15 - 25 HB 136/AP (2) A qualified organization that fails to comply with any of the requirements under this381 Code section shall be given written notice by the department of such failure to comply382 by certified mail and shall have 90 days from the receipt of su ch notice to correct all383 deficiencies.384 (3) Upon failure to correct all deficiencies within 90 days, the department shall revoke 385 the foster child support organization's status as a qualified organization and such entity386 shall be immediately removed from the department's list of orga nizations. All387 applications for preapproval of tax credits for contributions to such foster child support388 organization under this Code section made on or after the date of such removal shall be389 rejected.390 (4) Each foster child support organization that has had its status revoked and has been391 delisted pursuant to this Code section, shall immediately cease all expenditures of funds392 received relative to this Code section, and shall transfer all of such funds that are not yet393 expended, to a properly operating qualified organization within 30 calendar days of its394 removal from the department's list of qualified organizations.395 (k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount396 of qualified contributions that were utilized as deductions or exemptions from taxable397 income.398 (2) In no event shall the total amount of the tax credit used under this Code section for399 a taxable year exceed the taxpayer's income tax liability or the business enterprise's state400 tax liability owed pursuant to Code Section 33-8-4 . Any unused tax credit shall be401 allowed the taxpayer or business enterprise against the succeeding three years' tax402 liability. No such credit shall be allowed the taxpayer or business enterprise against prior403 years' tax liability.404 (l) The chairperson of the House Appropriations Committee and the chairperson of the405 Senate Committee on Appropriations shall have the authority to request an audit406 concerning this Code section as a whole or of any one or more qualified organizations. The407 H. B. 136 - 16 - 25 HB 136/AP commissioner, the state auditor, each qualified organization, each aging-out program, and408 the director of the division shall cooperate to the full extent necessary to conduct such409 audits.410 (m) At the discretion of the commissioner or the director of t he division, any suspected411 misuse of funds contributed or expended pursuant to this Code section shall be forwarded412 to the Attorney General for investigation and prosecution.413 (n) The commissioner shall promulgate rules and regulations necessary to implement and414 administer the provisions of this Code section."415 SECTION 2-2.416 Said chapter is further amended in Code Section 48-7-60, relating to confidentiality of tax417 information, exceptions, authorized inspection by certain offic ials, furnishing information418 to local tax authorities, furnishing information to nonofficials, conditions, and effect of Code419 section, by adding a new subsection to read as follows:420 "(d.1) The commissioner shall be authorized in his or her sole discretion to share421 information necessary to efficiently administer and enforce the provisions of this chapter422 for the purpose of tax credit administration when another state agency has statutory423 authority to administer such tax credits. Any confidential information furnished pursuant424 to this Code section shall retain its character as confidential and privileged information.425 Any person who divulges confidential information obtained pursuant to this Code section426 shall be subject to the same penalties as provided under Code Section 48-7-61 for unlawful427 divulgence of confidential taxpayer information."428 H. B. 136 - 17 - 25 HB 136/AP PART III429 SECTION 3-1.430 (a) This Act shall become effective on July 1, 2025, and, exce pt as provided in431 subsection (b) of this section, shall be applicable to all taxa ble years beginning on or after432 January 1, 2026.433 (b) Section 1-1 of this Act shall be applicable to all taxable years beginning on or after434 January 1, 2025.435 SECTION 3-2.436 All laws and parts of laws in conflict with this Act are repealed.437 H. B. 136 - 18 -