Georgia CommonsHB 357: Revenue and taxation; tax credits for certain contributions made by taxpayers to certain mortgage loan originators; provide
Comm Sub version, the latest LegiScan holds · Last action April 4, 2025 · Introduced
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Underlined words are what the bill adds to current law and struck-through words are what it removes, as the printed bill shows them.
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 Code of Georgia Annotated, relating to imposition, rate, computation, exemption, and credits, so as to provide for tax credits for certain contributions made by taxpayers to certain mortgage loan originators; to provide for definitions; to provide for an aggregate annual limit; to provide for terms and conditions; to provide for applications and certifications; to provide for the revocation of qualified status; to provide for certain penalties; to provide for the promulgation of rules and regulations; to provide for related matters; to provide for an effective date and applicability; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate, computation, exemptions, and credits, is amended by adding a new Code section to read as follows:
"48-7-29.27.
(a) As used in this Code section, the term:
(1) 'Exempted mortgage loan originator' means any mortgage loan originator, as such term is set forth in paragraph (22) of Code Section 7-1-1000, that is exempt from licensure pursuant to paragraph (13) of subsection (a) of Code Section 7-1-1001.
(2) 'Qualified contribution' means the preapproved contribution of funds made during the taxable year by a taxpayer to a qualified organization under the terms and conditions of this Code section.
(3) 'Qualified organization' means any exempted mortgage loan originator that has been certified and listed by the commissioner pursuant to subsection (d) of this Code section. (b)(1) The aggregate amount of tax credits allowed under this Code section shall not exceed $10 million per calendar year. No qualified organization shall accept contributions pursuant to this Code section which exceed $2 million per year.
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection, from January 1, 2026, through December 31, 2030, each taxpayer shall be allowed a credit against the tax imposed by this chapter for qualified contributions made on or after January 1, 2026, as follows:
(A) In the case of a single individual or a head of household, the actual amount of qualified contributions made or $5,000.00 per year, whichever is less;
(B) In the case of a married couple filing a joint return, the actual amount of qualified contributions made or $10,000.00 per year, whichever is less;
(C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph notwithstanding, in the case of an individual taxpayer who is a member of a limited liability company duly formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a partnership, the actual amount of qualified contributions it made or $10,000.00, whichever is less; provided, however, that tax credits pursuant to this paragraph shall be allowed only for the portion of the income on which such tax was actually paid by such member, shareholder, or partner; or
(D) In the case of a corporation or other entity not provided for in subparagraphs (A) through (C) of this paragraph, the actual amount of qualified contributions made or 30 percent of such corporation's or other entity's income tax liability, whichever is less.
(c) The commissioner shall establish an application process for certifying exempted mortgage loan originators as qualified organizations and shall publicly maintain a list of such qualified organizations.
(d)(1) Prior to making a contribution to any qualified organization, the taxpayer shall electronically request preapproval from the department, in a manner specified by the commissioner, of the total amount of the contribution that such taxpayer intends to make.
(2) Within 30 days after receiving such a request, the commissioner shall preapprove, deny, or prorate requested amounts on a first come, first served basis and shall provide notice to such taxpayer and the qualified organization of such preapproval, denial, or proration. Such notices shall not require any signed release or notarized approval by the taxpayer. The commissioner shall base such preapproval on the availability of tax credits subject to the aggregate limit established under paragraph (1) of subsection (b) of this Code section.
(3) Within 60 days after receiving such preapproval notice, the taxpayer shall contribute the preapproved amount to the qualified organization or such preapproved contribution amount shall expire. The commissioner shall not include such expired amounts in determining the remaining amount available under the aggregate limit for the respective calendar year.
(4)(A) For the period beginning on July 1 and ending on December 31 of each year, to the extent that the aggregate amount of tax credits authorized by subsection (b) of this Code section has not been reached, the commissioner shall preapprove, deny, or prorate additional requested amounts on a first come, first served basis and shall provide notice to such taxpayer and the qualified organization of such preapproval, denial, or proration.
(B) A taxpayer that is preapproved for the tax credit allowed pursuant to this Code section during the period provided for in subparagraph (A) of this paragraph shall only be allowed such credit in an amount that shall not exceed 95 percent of the amount otherwise allowed pursuant to this Code section.
(e)(1) Each qualified organization shall issue to each contributor a letter of confirmation of contribution, which shall include the taxpayer's name, address, tax identification number, the amount of the qualified contribution, the date of the qualified contribution, and the total amount of the credit allowed to the taxpayer.
(2) To claim the tax credit allowed under this Code section, the taxpayer shall attach to the taxpayer's tax return the letter provided for in paragraph (1) of this subsection. If the taxpayer files an electronic return, such letter shall be required to be electronically attached to the return only if the Internal Revenue Service allows such attachments to be affixed and transmitted to the department. In the event the taxpayer files an electronic tax return and such confirmation is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia tax return, such confirmation shall be maintained by the taxpayer and made available upon request by the commissioner.
(3) The commissioner shall allow tax credits for any preapproved contributions made to an exempted mortgage loan originator if such exempted mortgage loan originator was a qualified organization at the time of the commissioner's preapproval of the contributions and the taxpayer has otherwise complied with this Code section. (f)(1) A taxpayer shall not be allowed to designate or direct the taxpayer's qualified contributions to any particular purpose or for the direct benefit of any particular individual.
(2) A taxpayer that operates, owns, or is a subsidiary of an association, organization, or other entity that contracts directly with a qualified organization shall not be eligible for tax credits allowed under this Code section for contributions made to such qualified organization.
(3) In soliciting contributions, no person shall represent or direct that, in exchange for making qualified contributions to any qualified organization, a taxpayer shall receive any direct or particular benefit. The status as a qualified organization shall be revoked for any qualified organization determined to be in violation of this paragraph and shall not be renewed for at least two years.
(g)(1) No qualified organization shall use more than 10 percent of qualified contributions for administrative expenses or overhead. Each qualified organization shall maintain accurate and current records of all expenditures of such funds and provide such records to the commissioner upon request.
(2) A qualified organization that fails to comply with any of the requirements of this Code section shall be given written notice by the department of such failure to comply by certified mail and shall have 90 days from the receipt of such notice to correct all deficiencies.
(3) Upon failure to correct all deficiencies within 90 days, the department shall revoke the exempted mortgage loan originator's status as a qualified organization and such entity shall be immediately removed from the department's list of qualified organizations.
(4) Each exempted mortgage loan originator that has had its status revoked pursuant to this Code section shall immediately cease all expenditures of funds received pursuant to this Code section and shall transfer all of such funds that are not yet expended to a properly operating qualified organization within 30 calendar days of such revocation. (h)(1) No credit shall be allowed under this Code section to a taxpayer for any amount of qualified contributions that were utilized as deductions or exemptions from taxable income.
(2) In no event shall the total amount of the tax credit under this Code section for a taxable year exceed the taxpayer's income tax liability. No unused tax credit shall be allowed the taxpayer against succeeding years' tax liability. No such credit shall be allowed the taxpayer against prior years' tax liability.
(i) The commissioner shall promulgate rules and regulations necessary to implement and administer the provisions of this Code section."
SECTION 2.
This Act shall become effective on January 1, 2026, and shall be applicable to taxable years beginning on or after such date.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.