HB 357: Revenue and taxation; tax credits for certain contributions made by taxpayers to certain mortgage loan originators; provide

Georgia law normally requires mortgage loan originators to be licensed, but some are exempt under a specific provision of the state's mortgage licensing law. This bill would let taxpayers get a state income tax credit for donating money to those exempt originators, once the Department of Revenue certifies them as 'qualified organizations.' Donors must get preapproval from the department before giving, and the money must be sent within 60 days or the preapproval expires. The credit runs from January 1, 2026 through December 31, 2030, and is capped at $10 million total per year statewide, with no single organization allowed to accept more than $2 million a year. Individual limits range from $5,000 for a single filer to $10,000 for joint filers or business owners, and corporations can claim up to 30 percent of their tax liability. Organizations that misuse funds or promise donors special benefits can lose their certified status. The law would take effect January 1, 2026.

• Creates a new Georgia income tax credit (O.C.G.A. § 48-7-29.27) for contributions made to mortgage loan originators exempt from state licensing.
• Caps total credits statewide at $10 million per calendar year and limits any single qualified organization to $2 million in contributions per year.
• Sets individual credit limits: $5,000 for single filers, $10,000 for joint filers, and up to 30 percent of tax liability for corporations.
• Requires taxpayers to get electronic preapproval from the Department of Revenue before donating, with contributions due within 60 days of approval.
• Allows the department to revoke an organization's qualified status if it fails to fix compliance problems within 90 days or promises donors direct benefits.
• Limits qualified organizations to spending no more than 10 percent of contributions on administrative costs or overhead.

Exempted mortgage loan originators seeking certification as qualified organizations, individual taxpayers and married couples who donate, business owners such as LLC members, S-corporation shareholders and partners, corporations claiming the credit, and the Georgia Department of Revenue, which administers preapproval and certification.

Taxpayers who donate to certified mortgage loan originators could reduce their Georgia income tax bill by up to thousands of dollars, while those organizations would gain a new funding stream capped at $2 million each per year. The program's $10 million annual statewide cap means the tax benefit is limited and requires state preapproval before it can be claimed.

• Section 1 adds new Code Section 48-7-29.27 defining 'exempted mortgage loan originator' and 'qualified organization' as originators certified by the Department of Revenue commissioner.
• Subsection (b) sets the credit period from January 1, 2026 through December 31, 2030 and caps total statewide credits at $10 million per year, with a $2 million per-organization contribution limit.
• Subsection (b)(2) sets individual credit caps of $5,000 for single filers, $10,000 for joint filers or business owners such as LLC members and S-corp shareholders, and 30 percent of tax liability for corporations.
• Subsection (d) requires taxpayers to request electronic preapproval before donating and to make the contribution within 60 days or lose the preapproval.
• Subsection (f) bars taxpayers from directing contributions to a specific purpose or individual and revokes an organization's status for at least two years if it promises donors special benefits in exchange for contributions.
• Subsection (g) limits administrative spending to 10 percent of contributions and requires the department to revoke an organization's status if compliance failures are not corrected within 90 days.
• 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

• tax credits
• mortgage lending
• state revenue
• housing finance