HB357: HB357 Revenue and taxation; tax credits for certain contributions made by taxpayers to certain mortgage loan originators; provide

Georgia law does not currently give taxpayers a state income tax credit for donating to mortgage loan originators, a term covering certain organizations that help arrange home loans and are exempt from state licensing requirements under O.C.G.A. § 7-1-1001. This bill adds a new section to Georgia's tax code letting individuals, married couples, pass-through business owners, and corporations claim a credit for contributions made to these organizations once they are certified by the state as 'qualified organizations.' The credit runs from January 1, 2026 through December 31, 2030, with an overall statewide cap of $10 million per year and a $2 million per year limit on how much any single qualified organization can accept. Taxpayers must get preapproval from the Georgia Department of Revenue before giving, and organizations must limit administrative spending, keep records, and can lose their certified status for rule violations. The law would take effect January 1, 2026.

• Creates a new state income tax credit (O.C.G.A. § 48-7-29.27) for contributions made by taxpayers to certified 'exempted mortgage loan originators.'
• Caps the total credits available statewide at $10 million per calendar year and limits any single qualified organization to $2 million in contributions per year.
• Sets credit amounts by taxpayer type: up to $5,000 for individuals, $10,000 for married couples or pass-through business owners, and the lesser of the contribution or 30 percent of tax liability for corporations.
• Requires taxpayers to get electronic preapproval from the Department of Revenue before donating, and to contribute within 60 days or lose the preapproval.
• Requires the Department of Revenue to certify and publicly list qualifying organizations, and allows it to revoke that status for rule violations or uncorrected compliance failures.
• Bars organizations from spending more than 10 percent of contributions on administrative costs and bars donors from directing funds to a specific person or receiving a direct benefit for giving.

The bill affects Georgia taxpayers, individuals, married couples, business owners in partnerships or S corporations, and corporations, who could claim the credit. It also affects mortgage loan originators exempt from state licensing under O.C.G.A. § 7-1-1001, which could seek certification as qualified organizations, and the Georgia Department of Revenue, which administers the program.

Georgians who donate to these certified organizations could reduce their state income tax bill, while the organizations themselves gain a new funding source tied to a $10 million yearly cap. The preapproval process and revocation rules mean both donors and organizations face new administrative steps to qualify for or keep access to the credit.

• Section 1 adds new Code Section 48-7-29.27, defining 'exempted mortgage loan originator' by reference to O.C.G.A. § 7-1-1000 and § 7-1-1001(a)(13).
• Subsection (b) sets the $10 million annual aggregate credit limit, the $2 million per-organization contribution cap, and credit amounts of $5,000 (single), $10,000 (joint or pass-through owners), or 30 percent of tax liability for corporations, running from 2026 through 2030.
• Subsection (d) requires taxpayers to request electronic preapproval from the commissioner, who must respond within 30 days, and requires contributions within 60 days of preapproval or the approval expires.
• Subsection (d)(4) reduces credits to 95 percent of the normal amount for preapprovals issued between July 1 and December 31 of a given year.
• Subsection (f) prohibits directing contributions to a specific purpose or person and bars taxpayers connected to a contracting entity from claiming the credit for gifts to that organization.
• Subsection (g) limits administrative spending by qualified organizations to 10 percent of contributions and sets a 90 day correction period before the state revokes an organization's certified status.
• Section 2 sets the effective date as January 1, 2026, applying to taxable years beginning on or after that date.

1. 2025-04-04House Withdrawn, Recommitted (House)
2. 2025-03-06House Committee Favorably Reported By Substitute (House)
3. 2025-02-12House Second Readers (House)
4. 2025-02-11House First Readers (House)
5. 2025-02-10House Hopper (House)

• Lehman Franklin (R, HD-160)Primary sponsor

• state tax credits
• mortgage lending
• housing assistance
• Georgia income tax
• nonprofit funding