House Bill 597
By: Representatives Donatucci of the 105th, McCollum of the 30th, Schofield of the 63rd,
Seabaugh of the 34th, and Scott of the 76th
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, exemptions, and credits relative to income taxes,
so as to enact the "Fire and Emergency Services Support Act"; to provide for tax credits for
certain contributions made by taxpayers to certain local fire rescue foundations; 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 confidentiality; to require annual reporting; to provide for rules and
regulations; to provide definitions; to provide for construction; to provide for a short title;
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.
This Act shall be known and may be cited as the "Fire and Emergency Services Support
Act."
SECTION 2.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
imposition, rate, computation, exemptions, and credits relative to income taxes, 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:
(1) 'Fire rescue foundation' means any domestic nonprofit corporation with the sole
function of supporting one local fire rescue unit through a formal relationship recognized
by such local fire rescue unit and which maintains nonprofit status under
Section 501(c)(3) of the Internal Revenue Code and tax exempt status under Code
Section 48-7-25.
(2) 'Local fire rescue unit' means any agency, office, or department of a county,
municipality, or consolidated government of this state whose primary functions include
the protection of life and property against fire, explosions, hazardous materials, and other
hazards.
(3) 'Qualified contributions' means the preapproved contribution of funds by a taxpayer
to a qualified fire rescue foundation under the terms and conditions of this Code section.
(4) 'Qualified expenditures' means expenditures made by a qualified fire rescue
foundation:
(A)(i) For salary supplements or training provided directly to fire rescue personnel
employed by the local fire rescue unit affiliated with such qualified fire rescue
foundation; or
(ii) For the purchase, lease, maintenance, or improvement of equipment to be used
by such personnel; or
(B) To cover any costs incurred by the local fire rescue unit in collaborating with other
agencies to address emergency situations, provided that such costs shall not include
salaries or other regular compensation.
</ins>
<ins>(5) 'Qualified fire rescue foundation' means any fire rescue foundation that has been
designated as the sole local fire rescue foundation for a single local fire rescue unit and
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 $75 million per calendar year. Each qualified fire rescue foundation shall be
limited to accepting $3 million per year of contributions made under this Code section.
(2) Subject to the aggregate limit provided in paragraph (1) of this subsection, each
taxpayer shall be allowed a credit against the tax imposed by this chapter for qualified
contributions made by the taxpayer 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 tax 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 tax 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 per tax year, whichever is less; provided, however, that tax
credits pursuant to this paragraph shall only be allowed for the portion of the income
on which such tax was actually paid by such member of the limited liability company,
shareholder of a Subchapter 'S' corporation, or partner in a partnership; or
(D) A corporation or other entity not provided for in subparagraphs (A) through (C)
of this paragraph shall be allowed a credit against the tax imposed by this chapter, for
qualified contributions in an amount not to exceed the actual amount of qualified
contributions made or 75 percent of such corporation's or other entity's income tax
liability, whichever is less.
</ins>
<ins>(3) Nothing in this Code section shall be construed to limit the ability of a local fire
rescue unit to receive gifts, grants, and other benefits from any source allowed by law;
provided, however, that no local fire rescue unit shall, under this Code section, accept or
receive more than $3 million in contributions in any calendar year.
(c) The commissioner shall establish a web page on the department's public website for
the purpose of implementing this Code section. Such web page shall contain, at a
minimum:
(1) The application and requirements to be certified as a qualified fire rescue foundation;
(2) The current list of all qualified fire rescue foundations and their affiliate fire rescue
units;
(3) The total amount of tax credits remaining and available for preapproval for each year;
(4) A web based method for taxpayers seeking the preapproval status for contributions;
and
(5) The information received by the department from each qualified fire rescue
foundation pursuant to paragraph (1) of subsection (g), except for division (g)(1)(B)(iv)
of this Code section.
(d) Any qualified fire rescue foundation shall be certified by the commissioner following
the commissioner's receipt of a properly completed application and after the commissioner
has confirmed that a single local fire rescue unit has validly designated the applicant as its
sole fire rescue foundation. Such application shall be prescribed by the commissioner and
shall include an agreement by the applicant to fully comply with the terms and conditions
of this Code section.
(e)(1) Prior to making a contribution to any qualified fire rescue foundation, the taxpayer
shall electronically notify the department, in a manner specified by the commissioner, of
the total amount of contribution that such taxpayer intends to make to such qualified fire
rescue foundation.
</ins>
<ins>(2) Within 30 days after receiving a request for preapproval of contributions, 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 fire rescue
foundation of such preapproval, denial, or proration. Such notices shall not require any
signed release or notarized approval by the taxpayer. The preapproval of contributions
by the commissioner shall be based solely on the availability of tax credits subject to the
limits established under paragraph (1) of subsection (b) of this Code section.
(3) Within 60 days after receiving the preapproval notice issued by the commissioner
pursuant to paragraph (2) of this subsection, the taxpayer shall contribute the preapproved
amount to the qualified fire rescue foundation 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.
(f)(1) Each qualified fire rescue foundation 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) In order for a taxpayer to claim the tax credit allowed under this Code section, all
such applicable letters as provided for in paragraph (1) of this subsection shall be attached
to the taxpayer's tax return. When the taxpayer files an electronic return such
confirmation shall only be required to be electronically attached to the return if the
Internal Revenue Service allows such attachments to be affixed and transmitted to the
department. In any such event, the taxpayer shall maintain such confirmation and such
confirmation shall only be made available to the commissioner upon request.
(3) The commissioner shall allow tax credits for any preapproved contributions made to
a local fire rescue foundation at the time the contributions were made if such foundation
was a qualified fire rescue foundation at the time of the commissioner's preapproval of
the contributions and the taxpayer has otherwise complied with this Code section.
</ins>
<ins>(g)(1) Each qualified fire rescue foundation shall annually submit to the department:
(A) A complete copy of its IRS Form 990 and other applicable attachments, or for any
qualified fire rescue foundation that is not required by federal law to file an IRS
Form 990, such foundation shall submit to the commissioner equivalent information on
a form prescribed by the commissioner; and
(B) A report detailing the contributions received during the calendar year pursuant to
this Code section on a date determined by, and on a form provided by, the
commissioner which shall include:
(i) The total number and dollar value of individual contributions and tax credits
approved. Individual contributions shall include contributions made by those filing
income tax returns as a single individual or head of household and those filing joint
returns;
(ii) The total number and dollar value of corporate contributions and tax credits
approved;
(iii) The total number and dollar value of all qualified expenditures made; and
(iv) A list of contributors, including the dollar value of each contribution and the
dollar value of each approved tax credit.
(2) Except for the information published in accordance with paragraph (c) or (h) of this
Code section, all information or reports relative to this Code section that were provided
by qualified fire rescue foundations to the department shall be confidential taxpayer
information, governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such
information relates to the contributor or the qualified fire rescue foundation.
(h) Each qualified fire rescue foundation shall publish on its public website a copy of its
affiliated local fire rescue unit's prior year's annual budget containing the total amount of
funds received from its local governing body. If a qualified fire rescue foundation does not
maintain a public website, such information shall be otherwise made available by the
qualified fire rescue foundation to the public upon request.
</ins>
<ins>(i)(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, is affiliated with, or is a subsidiary of an association,
organization, or other entity that contracts directly with a qualified fire rescue foundation
or the local fire rescue unit that is affiliated with a qualified fire rescue foundation shall
not be eligible for tax credits allowed under this Code section for contributions made to
such qualified fire rescue foundation.
(3) In soliciting contributions, no person shall represent or direct that, in exchange for
making qualified contributions to any qualified fire rescue foundation, a taxpayer shall
receive any direct or particular benefit. The status as a qualified fire rescue foundation
shall be revoked for any fire rescue foundation determined to be in violation of this
paragraph and shall not be renewed for at least two years.
(j)(1) Qualified contributions shall only be used for qualified expenditures. Each
qualified fire rescue foundation shall maintain accurate and current records of all
expenditures of qualified contributions and provide such records to the commissioner
upon his or her request.
(2) A qualified fire rescue foundation that fails to comply with any of the requirements
under 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 fire rescue foundation's status as a qualified fire rescue foundation and such entity
shall be immediately removed from the department's list of qualified fire rescue
foundations. All applications for preapproval of tax credits for contributions to such fire
rescue foundation under this Code section made on or after the date of such removal shall
be rejected.
</ins>
<ins>(4) Each fire rescue foundation that has had its status revoked and has been delisted
pursuant to this Code section, shall immediately cease all expenditures of funds received
relative to this Code section, and shall transfer all of such funds that are not yet expended,
to a properly operating qualified fire rescue foundation within 30 calendar days of its
removal from the department's list of qualified fire rescue foundations.
(k)(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. Any unused tax credit shall be
allowed the taxpayer against the succeeding three years' tax liability. No such credit shall
be allowed the taxpayer against prior years' tax liability.
(l) The commissioner shall promulgate rules and regulations necessary to implement and
administer the provisions of this Code section."
</ins> SECTION 3.
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years
beginning on or after January 1, 2026.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.