--- title: HB 357. Revenue and taxation; tax credits for certain contributions made by taxpayers to certain mortgage loan originators; provide collection: bills id: 2025-2026/hb357 cite_as: HB 357, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/hb357 md_url: https://georgiacommons.org/bills/2025-2026/hb357.md text_url: https://georgiacommons.org/bills/2025-2026/hb357/text source_url: https://www.legis.ga.gov/legislation/70119 date: 2025-04-04 status: introduced corpus_version: bills-2026-08-28 license: Public record of the Georgia General Assembly, via LegiScan; see about.md publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice. up: https://georgiacommons.org/bills/2025-2026.md previous: https://georgiacommons.org/bills/2025-2026/hb356.md next: https://georgiacommons.org/bills/2025-2026/hb358.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 249 omitted_url: https://georgiacommons.org/bills/2025-2026/hb357.md?full=1 bill_number: HB 357 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: House bill_type: bill status_date: 2025-02-10 last_action: House Withdrawn, Recommitted sponsors: - Lehman Franklin text_version: Comm Sub has_text: true legiscan_url: https://legiscan.com/GA/bill/HB357/2025 upstream_id: 1964576 summaries_model: claude-sonnet-5 topic_tags: - state tax credits - mortgage lending - housing assistance - Georgia income tax - nonprofit funding --- # HB 357. Revenue and taxation; tax credits for certain contributions made by taxpayers to certain mortgage loan originators; provide ## Text 25 LC 50 1195S The House Committee on Ways and Means offers the following substitute to HB 357: 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, exemption, and credi ts, so as to provide for tax2 credits for certain contributions made by taxpayers to certain mortgage loan originators; to3 provide for definitions; to provide for an aggregate annual lim it; to provide for terms and4 conditions; to provide for applications and certifications; to provide for the revocation of5 qualified status; to provide for certain penalties; to provide for the promulgation of rules and6 regulations; to provide for related matters; to provide for an effective date and applicability;7 to repeal conflicting laws; and for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to11 imposition, rate, computation, exemptions, and credits, is amended by adding a new Code12 section to read as follows:13 "48-7-29.27.14 (a) As used in this Code section, the term:15 H. B. 357 (SUB) - 1 - 25 LC 50 1195S (1) 'Exempted mortgage loan originator' means any mortgage loa n originator, as such16 term is set forth in paragraph (22) of Code Section 7-1-1000, t hat is exempt from17 licensure pursuant to paragraph (13) of subsection (a) of Code Section 7-1-1001.18 (2) 'Qualified contribution' means the preapproved contribution of funds made during the19 taxable year by a taxpayer to a qualified organization under the terms and conditions of20 this Code section.21 (3) 'Qualified organization' means any exempted mortgage loan originator that has been22 certified and listed by the commissioner pursuant to subsection (d) of this Code section.23 (b)(1) The aggregate amount of tax credits allowed under this Code section shall not24 exceed $10 million per calendar year. No qualified organizatio n shall accept25 contributions pursuant to this Code section which exceed $2 million per year.26 (2) Subject to the aggregate limit provided in paragraph (1) o f this subsection, from27 January 1, 2026, through Decembe r 31, 2030, each taxpayer shall be allowed a credit28 against the tax imposed by this chapter for qualified contribut ions made on or after29 January 1, 2026, as follows:30 (A) In the case of a single individual or a head of household, the actual amount of31 qualified contributions made or $5,000.00 per year, whichever is less;32 (B) In the case of a married couple filing a joint return, the actual amount of qualified33 contributions made or $10,000.00 per year, whichever is less;34 (C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph35 notwithstanding, in the case of an individual taxpayer who is a member of a limited36 liability company duly formed under state law, a shareholder of a Subchapter 'S'37 corporation, or a partner in a partnership, the actual amount of qualified contributions38 it made or $10,000.00, whichever is less; provided, however, that tax credits pursuant39 to this paragraph shall be allowed only for the portion of the income on which such tax40 was actually paid by such member, shareholder, or partner; or41 H. B. 357 (SUB) - 2 - 25 LC 50 1195S (D) In the case of a corporation or other entity not provided for in subparagraphs (A)42 through (C) of this paragraph, the actual amount of qualified contributions made or 3043 percent of such corporation's or other entity's income tax liability, whichever is less.44 (c) The commissioner shall establish an application process fo r certifying exempted45 mortgage loan originators as qualified organizations and shall publicly maintain a list of46 such qualified organizations.47 (d)(1) Prior to making a contribution to any qualified organiz ation, the taxpayer shall48 electronically request preapproval from the department, in a ma nner specified by the49 commissioner, of the total amount of the contribution that such taxpayer intends to make.50 (2) Within 30 days after receiving such a request, the commiss ioner shall preapprove,51 deny, or prorate requested amounts on a first come, first served basis and shall provide52 notice to such taxpayer and the qualified organization of such preapproval, denial, or53 proration. Such notices shall not require any signed release or notarized approval by the54 taxpayer. The commissioner shall base such preapproval on the availability of tax credits55 subject to the aggregate limit established under paragraph (1) of subsection (b) of this56 Code section.57 (3) Within 60 days after receiving such preapproval notice, the taxpayer shall contribute58 the preapproved amount to the qualified organization or such preapproved contribution59 amount shall expire. The commissioner shall not include such e xpired amounts in60 determining the remaining amount available under the aggregate limit for the respective61 calendar year.62 (4)(A) For the period beginning on July 1 and ending on Decemb er 31 of each year,63 to the extent that the aggregate amount of tax credits authoriz ed by subsection (b) of64 this Code section has not been reached, the commissioner shall preapprove, deny, or65 prorate additional requested amounts on a first come, first ser ved basis and shall66 provide notice to such taxpayer and the qualified organization of such preapproval,67 denial, or proration.68 H. B. 357 (SUB) - 3 - 25 LC 50 1195S (B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code69 section during the period provided for in subparagraph (A) of this paragraph shall only70 be allowed such credit in an amount that shall not exceed 95 pe rcent of the amount71 otherwise allowed pursuant to this Code section.72 (e)(1) Each qualified organization shall issue to each contributor a letter of confirmation73 of contribution, which shall include the taxpayer's name, addre ss, tax identification74 number, the amount of the qualified contribution, the date of the qualified contribution,75 and the total amount of the credit allowed to the taxpayer.76 (2) To claim the tax credit allowed under this Code section, the taxpayer shall attach to77 the taxpayer's tax return the letter provided for in paragraph (1) of this subsection. If the78 taxpayer files an electronic return, such letter shall be requi red to be electronically79 attached to the return only if the Internal Revenue Service allows such attachments to be80 affixed and transmitted to the department. In the event the ta xpayer files an electronic81 tax return and such confirmation is not attached because the In ternal Revenue Service82 does not, at the time of such electronic filing, allow electronic attachments to the Georgia83 tax return, such confirmation shall be maintained by the taxpay er and made available84 upon request by the commissioner.85 (3) The commissioner shall allow tax credits for any preapproved contributions made to86 an exempted mortgage loan originator if such exempted mortgage loan originator was a87 qualified organization at the time of the commissioner's preapproval of the contributions88 and the taxpayer has otherwise complied with this Code section.89 (f)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified90 contributions to any particular purpose or for the direct benef it of any particular91 individual.92 (2) A taxpayer that operates, owns, or is a subsidiary of an association, organization, or93 other entity that contracts directly with a qualified organization shall not be eligible for94 H. B. 357 (SUB) - 4 - 25 LC 50 1195S tax credits allowed under this Code section for contributions m ade to such qualified95 organization.96 (3) In soliciting contributions, no person shall represent or direct that, in exchange for97 making qualified contributions to any qualified organization, a taxpayer shall receive any98 direct or particular benefit. The status as a qualified organization shall be revoked for any99 qualified organization determined to be in violation of this pa ragraph and shall not be100 renewed for at least two years.101 (g)(1) No qualified organization shall use more than 10 percent of qualified contributions102 for administrative expenses or overhead. Each qualified organi zation shall maintain103 accurate and current records of all expenditures of such funds and provide such records104 to the commissioner upon request.105 (2) A qualified organization that fails to comply with any of the requirements of this106 Code section shall be given written notice by the department of such failure to comply107 by certified mail and shall have 90 days from the receipt of su ch notice to correct all108 deficiencies.109 (3) Upon failure to correct all deficiencies within 90 days, the department shall revoke110 the exempted mortgage loan originator's status as a qualified organization and such entity111 shall be immediately removed from the department's list of qualified organizations.112 (4) Each exempted mortgage loan originator that has had its status revoked pursuant to113 this Code section shall immediately cease all expenditures of funds received pursuant to114 this Code section and shall transfer all of such funds that are not yet expended to a115 properly operating qualified organization within 30 calendar days of such revocation.116 (h)(1) No credit shall be allowed under this Code section to a taxpayer for any amount117 of qualified contributions that were utilized as deductions or exemptions from taxable118 income.119 (2) In no event shall the total amount of the tax credit under this Code section for a120 taxable year exceed the taxpayer's income tax liability. No un used tax credit shall be121 H. B. 357 (SUB) - 5 - 25 LC 50 1195S allowed the taxpayer against succeeding years' tax liability. No such credit shall be122 allowed the taxpayer against prior years' tax liability.123 (i) The commissioner shall promulgate rules and regulations necessary to implement and124 administer the provisions of this Code section."125 SECTION 2.126 This Act shall become effective on January 1, 2026, and shall be applicable to taxable years127 beginning on or after such date.128 SECTION 3.129 All laws and parts of laws in conflict with this Act are repealed.130 H. B. 357 (SUB) - 6 - ## Summaries written by Georgia Commons The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary. House Bill 357 would create a new Georgia income tax credit for people and businesses who donate to certain nonprofit mortgage loan originators exempt from state licensing, capped at $10 million statewide per year. ### Plain-language summary Georgia law does not currently give taxpayers a state income tax credit for donating to mortgage loan originators, a term covering certain organizations that help arrange home loans and are exempt from state licensing requirements under O.C.G.A. § 7-1-1001. This bill adds a new section to Georgia's tax code letting individuals, married couples, pass-through business owners, and corporations claim a credit for contributions made to these organizations once they are certified by the state as 'qualified organizations.' The credit runs from January 1, 2026 through December 31, 2030, with an overall statewide cap of $10 million per year and a $2 million per year limit on how much any single qualified organization can accept. Taxpayers must get preapproval from the Georgia Department of Revenue before giving, and organizations must limit administrative spending, keep records, and can lose their certified status for rule violations. The law would take effect January 1, 2026. ### What it does - Creates a new state income tax credit (O.C.G.A. § 48-7-29.27) for contributions made by taxpayers to certified 'exempted mortgage loan originators.' - Caps the total credits available statewide at $10 million per calendar year and limits any single qualified organization to $2 million in contributions per year. - Sets credit amounts by taxpayer type: up to $5,000 for individuals, $10,000 for married couples or pass-through business owners, and the lesser of the contribution or 30 percent of tax liability for corporations. - Requires taxpayers to get electronic preapproval from the Department of Revenue before donating, and to contribute within 60 days or lose the preapproval. - Requires the Department of Revenue to certify and publicly list qualifying organizations, and allows it to revoke that status for rule violations or uncorrected compliance failures. - Bars organizations from spending more than 10 percent of contributions on administrative costs and bars donors from directing funds to a specific person or receiving a direct benefit for giving. ### Who it affects The bill affects Georgia taxpayers, individuals, married couples, business owners in partnerships or S corporations, and corporations, who could claim the credit. It also affects mortgage loan originators exempt from state licensing under O.C.G.A. § 7-1-1001, which could seek certification as qualified organizations, and the Georgia Department of Revenue, which administers the program. ### Why it matters Georgians who donate to these certified organizations could reduce their state income tax bill, while the organizations themselves gain a new funding source tied to a $10 million yearly cap. The preapproval process and revocation rules mean both donors and organizations face new administrative steps to qualify for or keep access to the credit. ### Key provisions - Section 1 adds new Code Section 48-7-29.27, defining 'exempted mortgage loan originator' by reference to O.C.G.A. § 7-1-1000 and § 7-1-1001(a)(13). - Subsection (b) sets the $10 million annual aggregate credit limit, the $2 million per-organization contribution cap, and credit amounts of $5,000 (single), $10,000 (joint or pass-through owners), or 30 percent of tax liability for corporations, running from 2026 through 2030. - Subsection (d) requires taxpayers to request electronic preapproval from the commissioner, who must respond within 30 days, and requires contributions within 60 days of preapproval or the approval expires. - Subsection (d)(4) reduces credits to 95 percent of the normal amount for preapprovals issued between July 1 and December 31 of a given year. - Subsection (f) prohibits directing contributions to a specific purpose or person and bars taxpayers connected to a contracting entity from claiming the credit for gifts to that organization. - Subsection (g) limits administrative spending by qualified organizations to 10 percent of contributions and sets a 90 day correction period before the state revokes an organization's certified status. - Section 2 sets the effective date as January 1, 2026, applying to taxable years beginning on or after that date. ## Status - Status: Introduced (2025-02-10) - Last action: House Withdrawn, Recommitted (2025-04-04) - Sponsors: Lehman Franklin - Official page: https://www.legis.ga.gov/legislation/70119 > The history, votes, and amendments (249 characters) are at https://georgiacommons.org/bills/2025-2026/hb357.md?full=1