HB 597: Fire and Emergency Services Support Act; enact

Georgia currently has no dedicated tax credit for donations to local fire department support foundations. This bill, called the Fire and Emergency Services Support Act, would add a new section to Georgia's tax code allowing taxpayers to get a state income tax credit for contributions made to a certified 'qualified fire rescue foundation,' a nonprofit that exclusively supports one local fire or rescue unit. Taxpayers must get preapproval from the Department of Revenue before donating, and credits are capped by income tax filing type: $5,000 for individuals, $10,000 for joint filers, and up to 75 percent of tax liability for corporations. Each foundation can accept at most $3 million per year, and the statewide total credit pool is capped at $75 million per year. The money can only fund things like salary supplements, training, equipment, or collaboration costs, not personal benefits to donors. The law would take effect July 1, 2025, and apply to tax years starting on or after January 1, 2026.

• Creates a new Georgia income tax credit (O.C.G.A. § 48-7-29.27) for contributions to certified nonprofit foundations that support a single local fire or rescue department.
• Caps the total statewide tax credits at $75 million per calendar year and limits each foundation to $3 million in qualifying contributions per year.
• Sets individual credit limits: $5,000 for single filers or heads of household, $10,000 for joint filers, and up to 75 percent of tax liability for corporations.
• Requires taxpayers to get electronic preapproval from the Department of Revenue before making a contribution, on a first come, first served basis.
• Requires each qualified foundation to report contributions and expenditures annually and publish its affiliated fire department's budget online.
• Allows the Department of Revenue to revoke a foundation's certified status for noncompliance, with a two year waiting period before it can requalify.

Georgia taxpayers, both individuals and businesses, who want to donate to local fire department support nonprofits; nonprofit fire rescue foundations that must apply for certification and report to the state; local fire and rescue units affiliated with those foundations; and the Georgia Department of Revenue, which administers preapproval, certification, and enforcement.

If enacted, Georgians who donate to certified fire department support foundations could reduce their state income tax bill, potentially channeling more private money into local fire departments for equipment, training, and salary supplements, while creating new paperwork and compliance duties for both donors and foundations.

• Section 2 adds O.C.G.A. § 48-7-29.27, defining 'fire rescue foundation,' 'local fire rescue unit,' 'qualified contributions,' 'qualified expenditures,' and 'qualified fire rescue foundation.'
• Subsection (b) sets the $75 million annual statewide cap, the $3 million per-foundation cap, and individual/corporate credit limits ($5,000 single, $10,000 joint or pass-through entity, 75 percent of liability for corporations).
• Subsection (d) requires the Department of Revenue to certify foundations only if a single local fire rescue unit has designated them as its sole support foundation.
• Subsections (e) and (f) require taxpayers to seek electronic preapproval before donating and to attach a foundation-issued confirmation letter to their tax return to claim the credit.
• Subsection (g) requires foundations to submit annual reports and IRS Form 990 information, with most data kept confidential except limited published summaries.
• Subsection (i) bars donors from directing their contributions to a specific purpose or person and bars entities with contracts with the foundation from claiming the credit for donations to it.
• Subsection (j) sets a compliance process: 90 days to fix deficiencies after written notice, then revocation and delisting, with unspent funds transferred to another qualified foundation within 30 days.
• Section 3 sets the effective date as July 1, 2025, applicable to tax years beginning on or after January 1, 2026.

1. 2025-02-27House Second Readers (House)
2. 2025-02-26House First Readers (House)
3. 2025-02-24House Hopper (House)

• Sandy Donatucci (R, HD-105)Primary sponsor
• Derrick McCollum (R, HD-30)
• Kim Schofield (D, HD-63)
• Devan Seabaugh (R, HD-34)
• Sandra Scott (D, HD-76)

• fire department funding
• tax credits
• emergency services
• charitable giving
• Georgia income tax