HB628: HB628 Income tax; contributions to law enforcement foundations; revise tax credit

Georgia law lets taxpayers get an income tax credit for donating to certain qualified law enforcement foundations, which support local police and sheriff's offices. Under current law (O.C.G.A. § 48-7-29.25), the total credits available statewide are capped at $75 million a year, and each foundation can accept no more than $3 million in credit-eligible donations per year. That program is set to expire for tax years after 2027. This bill raises the per-foundation cap from $3 million to $5 million a year, while keeping the $75 million statewide cap unchanged. It also extends the program so the credit applies through the 2032 tax year instead of ending after 2027. Individual and corporate credit limits stay the same. The changes would take effect July 1, 2025, and apply to tax years beginning on or after January 1, 2026.

• Raises the amount any single qualified law enforcement foundation can accept in tax-credit-eligible donations from $3 million to $5 million per calendar year.
• Extends the tax credit program so it applies to taxable years through December 31, 2032, instead of ending after 2027.
• Keeps the overall statewide cap on these tax credits at $75 million per year unchanged.
• Leaves the individual, joint-filer, and corporate credit limits (such as $5,000 for a single filer) exactly as they were.
• Clarifies the preapproval process by having taxpayers electronically notify the Department of Revenue before making a donation.

Georgians who donate to qualified law enforcement foundations and claim the state income tax credit, the law enforcement foundations themselves that support local police and sheriff's departments, and the Georgia Department of Revenue, which administers the preapproval process.

Foundations that support local law enforcement could raise more credit-eligible donations each year, potentially bringing in more private funding for police and sheriff's departments. Extending the credit's expiration date to 2032 also gives donors and foundations several more years to rely on the program.

• Section 1 amends O.C.G.A. § 48-7-29.25(b) to raise the per-foundation contribution cap from $3 million to $5 million per calendar year, while keeping the $75 million aggregate statewide cap.
• Section 1 extends the credit's applicable period from taxable years ending on or before December 31, 2027 to taxable years ending on or before December 31, 2032.
• Section 1 revises subsection (e) to require taxpayers to electronically notify the Department of Revenue for preapproval before making a donation, rather than simply requesting preapproval.
• Section 2 sets the effective date as July 1, 2025, applying to taxable years beginning on or after January 1, 2026.
• Section 3 repeals conflicting laws.

1. 2025-02-28House Second Readers (House)
2. 2025-02-27House First Readers (House)
3. 2025-02-26House Hopper (House)

• Beth Camp (R, HD-135)Primary sponsor
• Clint Crowe (R, HD-118)
• Eddie Lumsden (R, HD-012)
• Marcus Wiedower (R, HD-121)

• income tax credits
• law enforcement funding
• police foundations
• Georgia tax law