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

25 LC 50 1090 House Bill 628 By: Representatives Camp of the 135 th, Crowe of the 118 th, Lumsden of the 12 th, and Wiedower of the 121st A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to imposition, rate, computation, exemptions, and credits for income taxes, so as to2 revise an income tax credit for contributions to law enforcement foundations; to increase the3 annual amount of contributions allowed; to extend the sunset date; to provide for procedures;4 to provide for related matters; to provide for an effective dat e and applicability; to repeal5 conflicting laws; and for other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to9 imposition, rate, computation, exemptions, and credits for income taxes is amended in Code10 Section 48-7-29.25, relating to income tax credits for contribu tions to law enforcement11 foundations, by revising subsections (b) and (e) as follows:12 "(b)(1) The aggregate amount of tax credits allowed under this Code section shall not13 exceed $75 million per calendar year. Each qualified law enforcement foundation shall14 be limited to accepting $3 $5 million per year of contributions made under this Code15 section.16 H. B. 628 - 1 - 25 LC 50 1090 (2) Subject to the aggregate limit provided in paragraph (1) of this subsection, for taxable17 years beginning on or after January 1, 2023, and ending on or before December 31, 202718 2032, each taxpayer shall be allowed a credit against the tax imposed by this chapter for19 qualified contributions made by the taxpayer as follows:20 (A) In the case of a single individual or a head of household, the actual amount of21 qualified contributions made or $5,000.00 per tax year, whichever is less;22 (B) In the case of a married couple filing a joint return, the actual amount of qualified23 contributions made or $10,000.00 per tax year, whichever is less;24 (C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph25 notwithstanding, in the case of an individual taxpayer who is a member of a limited26 liability company duly formed under state law, a shareholder of a Subchapter 'S'27 corporation, or a partner in a partnership, the actual amount of qualified contributions28 it made or $10,000.00 per tax year, whichever is less; provided , however, that tax29 credits pursuant to this paragraph shall only be allowed for the portion of the income30 on which such tax was actually paid by such member of the limited liability company,31 shareholder of a Subchapter 'S' corporation, or partner in a partnership; or32 (D) A corporation or other entity not provided for in subparag raphs (A) through (C)33 of this paragraph shall be allowed a credit against the tax imposed by this chapter, for34 qualified contributions in an amount not to exceed the actual a mount of qualified35 contributions made or 75 percent of such corporation's or other entity's income tax36 liability, whichever is less.37 (3) Nothing in this Code section shall be construed to limit t he ability of a local law38 enforcement unit to receive gifts, grants, and other benefits from any source allowed by39 law; provided, however, that no local law enforcement unit shall, under this Code section,40 accept or receive more than $3 $5 million in contributions in any calendar year."41 "(e)(1) Prior to making a contribution to any qualified law enforcement foundation, the42 taxpayer shall request preapproval by electronically notify notifying the department, in43 H. B. 628 - 2 - 25 LC 50 1090 a manner specified by the commissioner, of the total amount of contribution that such44 taxpayer intends to make to such qualified law enforcement foundation.45 (2) Within 30 days after receiving a request for preapproval o f contributions, the46 commissioner shall preapprove, deny, or prorate requested amounts on a first come, first47 served basis and shall provide notice to such taxpayer and the qualified law enforcement48 foundation of such preapproval, denial, or proration. Such notices shall not require any49 signed release or notarized approval by the taxpayer. The preapproval of contributions50 by the commissioner shall be based solely on the availability of tax credits subject to the51 limits established under paragraph (1) of subsection (b) of this Code section.52 (3) Within 60 days after receiving the preapproval notice issu ed by the commissioner53 pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved54 amount to the qualified law enforcement foundation or such prea pproved contribution55 amount shall expire. The commissioner shall not include such e xpired amounts in56 determining the remaining amount amounts available under the aggregate limit limits57 provided in paragraph (1) of subsection (b) of this Code sectio n f o r t h e r e s p e c t i v e58 calendar year."59 SECTION 2.60 This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years61 beginning on or after January 1, 2026.62 SECTION 3.63 All laws and parts of laws in conflict with this Act are repealed.64 H. B. 628 - 3 -