HB479: HB479 Income tax; allow for tax credits in excess of the amount that can be claimed in a given year to be carried forward to subsequent years

Georgia law currently offers income tax credits to corporations that contribute to student scholarship organizations, rural hospital organizations, nonprofit groups that fund public schools, foster child support organizations, and law enforcement foundations (O.C.G.A. §§ 48-7-29.16, 48-7-29.20, 48-7-29.21, 48-7-29.24, and 48-7-29.25). Several of these sections currently limit the credit calculation specifically to a 'corporation's' estimated income tax liability. This bill rewrites those sections so the credit cap is based on 'such entity's' or 'other entity's' estimated income tax liability instead, extending eligibility beyond corporations to other business entity types. Although the bill's title says it would let unused credits carry forward to future tax years, the actual sections in the text only change this corporation-specific wording; no carryforward mechanism appears in the operative language. The changes would take effect July 1, 2025, and apply to tax years beginning on or after January 1, 2026.

• Rewrites the student scholarship organization tax credit law (O.C.G.A. § 48-7-29.16) to base the credit cap on 'such entity's' estimated tax liability rather than just a corporation's.
• Rewrites the rural hospital organization tax credit law (O.C.G.A. § 48-7-29.20) with the same corporation-to-entity wording change.
• Rewrites the public school donation tax credit law (O.C.G.A. § 48-7-29.21) the same way.
• Revises the foster child support organization tax credit law (O.C.G.A. § 48-7-29.24) to apply its 10 percent liability cap to any entity not covered by other listed categories.
• Revises the law enforcement foundation tax credit law (O.C.G.A. § 48-7-29.25) so entities beyond corporations can claim the credit up to 75 percent of estimated tax liability.
• Sets the changes to take effect July 1, 2025, applying to tax years starting on or after January 1, 2026.

Businesses and other entities in Georgia that donate to student scholarship organizations, rural hospital organizations, public school support nonprofits, foster child support organizations, or law enforcement foundations, as well as the Georgia Department of Revenue, which administers these tax credit programs.

By changing 'corporation' to 'such entity' or 'other entity' throughout these credit statutes, the bill would let a broader range of business structures, not just corporations, calculate and claim these donation-based tax credits against their estimated tax liability, potentially widening who can participate in these programs.

• Section 1 revises O.C.G.A. § 48-7-29.16(c) so the student scholarship organization credit cap applies to 'such entity's' estimated income tax liability instead of only a corporation's.
• Section 2 makes the same wording change to the rural hospital organization credit in O.C.G.A. § 48-7-29.20(c).
• Section 3 makes the same change to the public school donation credit in O.C.G.A. § 48-7-29.21(c).
• Section 4 revises O.C.G.A. § 48-7-29.24(b.1)(4), applying the 10 percent estimated tax liability cap for foster child support organization credits to any qualifying entity.
• Section 5 revises O.C.G.A. § 48-7-29.25(b)(2)(D), extending the law enforcement foundation credit's 75 percent cap language to entities beyond corporations.
• Section 6 sets the effective date as July 1, 2025, applicable to tax years beginning on or after January 1, 2026.
• Section 7 repeals any conflicting laws.

1. 2025-02-20House Second Readers (House)
2. 2025-02-19House First Readers (House)
3. 2025-02-18House Hopper (House)

• John Carson (R, HD-046)Primary sponsor
• Matt Dubnik (R, HD-029)
• Trey Kelley (R, HD-016)
• Kasey Carpenter (R, HD-004)
• Clint Crowe (R, HD-118)
• Ginny Ehrhart (R, HD-036)

• income tax credits
• student scholarship organizations
• rural hospitals
• law enforcement foundations
• foster care organizations