HB597: HB597 Fire and Emergency Services Support Act; enact

Georgia does not currently offer a tax credit for donations to organizations that support local fire and rescue units. House Bill 597, called the Fire and Emergency Services Support Act, would create one. Taxpayers who make preapproved donations to a certified 'qualified fire rescue foundation,' a nonprofit tied to a single local fire department, could claim a credit against their state income taxes. The bill sets individual limits ($5,000 for single filers, $10,000 for joint filers, and up to 75 percent of tax liability for corporations), a $3 million per year cap on what any one foundation can accept in credited contributions, and a $75 million annual statewide cap on total credits. The Georgia Department of Revenue would certify foundations, run a preapproval process, and could revoke a foundation's status for noncompliance. The law would take effect July 1, 2025, and apply to tax years starting on or after January 1, 2026.

• Creates a new Georgia income tax credit (O.C.G.A. § 48-7-29.27) for taxpayers who make preapproved donations to certified local fire rescue foundations.
• Sets an overall $75 million per year statewide cap on credits and limits each foundation to accepting $3 million in credited contributions annually.
• Requires taxpayers to get advance approval from the Department of Revenue before donating, with a 30-day approval window and a 60-day deadline to make the contribution.
• Requires foundations to spend donations only on specific 'qualified expenditures' like firefighter salary supplements, training, or equipment, not general operations.
• Allows the Department of Revenue to revoke a foundation's certified status if it fails to fix compliance problems within 90 days, and requires it to transfer unspent funds to another qualified foundation.
• Requires certified foundations to publicly post their affiliated fire department's prior year budget and to report contribution and expenditure data annually to the state.

The bill affects individual and corporate Georgia taxpayers who want to claim the credit, nonprofit fire rescue foundations seeking certification, local fire and rescue departments affiliated with those foundations, and the Georgia Department of Revenue, which would administer applications, preapproval, and enforcement.

If enacted, Georgians who donate to a certified local fire department support foundation could reduce their state tax bill, potentially increasing private funding for firefighter training, equipment, and salary supplements, while capping the total revenue impact on the state at $75 million a year.

• Section 2 adds O.C.G.A. § 48-7-29.27, defining 'fire rescue foundation,' 'local fire rescue unit,' 'qualified contributions,' and 'qualified expenditures.'
• Subsection (b) sets the $75 million aggregate annual credit cap, a $3 million per-foundation contribution cap, and individual credit limits of $5,000 (single) or $10,000 (joint, LLC members, S-corp shareholders, partners), plus a 75 percent of tax liability limit for corporations.
• Subsections (d) and (e) require foundations to be certified by the Commissioner and require taxpayers to get electronic preapproval before donating, with approval decided on a first-come, first-served basis within 30 days.
• Subsection (f) requires foundations to issue contribution confirmation letters that taxpayers must attach to their tax returns to claim the credit.
• Subsection (g) requires annual reporting to the department, including IRS Form 990 filings and detailed contribution data, most of which stays confidential except for aggregate published figures.
• Subsection (i) bars taxpayers from directing donations to specific individuals or purposes and disqualifies taxpayers affiliated with entities that contract with the foundation or fire unit.
• Subsections (j) and (k) set a 90-day cure period before revoking a foundation's status and limit unused credits to a three-year carryforward with no carryback.
• Section 3 sets the effective date as July 1, 2025, applicable to taxable years beginning on or after January 1, 2026.

1. 2025-02-27House Second Readers (House)
2. 2025-02-26House First Readers (House)
3. 2025-02-24House Hopper (House)

• Sandy Donatucci (R, HD-105)Primary sponsor
• Derrick McCollum (R, HD-030)
• Kim Schofield (D, HD-063)
• Devan Seabaugh (R, HD-034)
• Sandra Scott (D, HD-076)

• fire departments
• tax credits
• emergency services
• charitable giving
• state income tax