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:
<ins>"48-7-29.27.
(a) As used in this Code section, the term:
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<ins>(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
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<ins>(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.
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<ins>(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
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<ins>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
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<ins>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."
</ins> 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.