SB515: SB515 "Quality Basic Education Act"; grants for educational programs; provisions relative to the teacher recruitment and retention tax credit program; revise

LC 44 3572S The House Committee on Rules offers the following substitute to SB 515: A BILL TO BE ENTITLED AN ACT To amend Part 9 of Article 6 of Chapter 2 of Title 20 of the Of ficial Code of Georgia1 Annotated, relating to grants for educational programs under the "Quality Basic Education2 Act," so as to increase the maximum number of participating tea chers in the teacher3 recruitment and retention tax credit program from 1,000 to 1,20 0 each year; to revise and4 streamline provisions relative to such program; to reduce the amount of the annual tax credit5 available to new participants from $3,000.00 to $2,500.00 after a date certain; to provide for6 an exception; to repeal certain requirements for qualifying public schools; to provide for new7 requirements for qualifying public schools based on school perf ormance; to provide for8 prioritized selection as necessary; to provide for rules and procedures; to extend deadline for9 program applications; to provide for definitions; to amend Article 2 of Chapter 7 of Title 4810 of the Official Code of Georgia Annotated, relating to income t ax imposition, rate,11 computation, exemptions, and credits, so as to revise tax credits for donation of real property12 for conservation purposes; to revise required filings; to repeal provisions regarding the State13 Properties Commission; to revise the aggregate amount of tax credits allowed; to extend the14 date for acceptance of new applications; to repeal penalty provisions; to repeal a definition;15 to provide for tax credit amounts; to provide that the total am ount of tax credits shall not16 exceed $3 million in any fiscal year; to provide for related matters; to provide for effective17 dates; to repeal conflicting laws; and for other purposes.18 - 1 - LC 44 3572S BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:19 SECTION 1.20 Part 9 of Article 6 of Chapter 2 of Title 20 of the Official Co de of Georgia Annotated,21 relating to grants for educational programs under the "Quality Basic Education Act," is22 amended by revising Code Section 20-2-251, relating to teacher recruitment and retention23 program, purpose, annual evaluation of program, and maximum participation, as follows:24 "20-2-251.25 (a) As used in this Code section, the term:26 (1) 'Department' means the Department of Education.27 (1.1) 'High-need subject area' means one of the three content areas for which there are28 the greatest percentages of unfilled positions for classroom teachers in a RESA service29 area as determined annually for each RESA service area by the department based upon30 a five-year average review of a survey reported by local school systems to the31 department.32 (2) 'Participating local school system' means a local school system that participates in the33 program by receiving grant money from the state and disbursing it to participating34 teachers.35 (3) 'Participating school' means a qualifying public school that has been selected by the36 department to participate in the program.37 (4)(2) 'Participating teacher' means a teacher, as defined in subsec tion (a) of Code38 Section 20-2-942, who is eligible to participate and does participate in the program.39 (5)(3) 'Postsecondary educational institution' means a school which is:40 (A) A unit An institution of the University System of Georgia, including any college41 or university under the government, control, and management of the Board of Regents42 of the University System of Georgia; or43 - 2 - LC 44 3572S (B) An independent or private college or university located in Georgia this state and44 eligible to be deemed an approved school as defined in paragraph (2) of Code Section45 20-3-411.46 (6)(4) 'Program' means the teacher recruitment and retention program provided for in this47 Code section.48 (7)(5) 'Qualifying public school' means a public school in this state that is designated by49 the department as qualified to participate in the program that is located in a rural territory50 in this state or a school that has performed in the lowest 5 percent of schools in this state51 as identified in accordance with the state-wide accountability system established in the52 state plan pursuant to the federal Every Student Succeeds Act.53 (8)(6) 'Recently hired' means a teacher, whether a new or experienced teacher, who has54 accepted his or her first school year employment contract to teach at a qualifying public55 school during the immediately preceding school year, whose employment contract was56 renewed for the current school year, and who remains an employee in good standing with57 such qualifying public school for the 2021-2022 school year, for the current school year,58 or for the immediately upcoming school year.59 (9)(7) 'Rural territory' means territory that is more than five mile s from the nearest60 'urbanized area' and more than two and one-half miles from the nearest 'urban cluster' as61 such terms are defined in OMB Standards for Defining Metropolitan and Micropolitan62 Statistical Areas, 65 Fed. Reg. 82238.63 (10) 'School year contract' means a contract of full-time employment between a teacher64 and a local board of education covering a full school year. A contract of employment for65 a portion of a school year shall not be counted as a school yea r contract, nor shall66 contracts of employment for portions of a school year be cumula ted and treated as a67 school year contract. A contract of employment for any time outside a school year shall68 not be counted as a school year contract, nor shall contracts o f employment for time69 outside a school year be cumulated and treated as a school year contract. A school year70 - 3 - LC 44 3572S contract is deemed included within a contract of full-time employment between a teacher71 and a local board of education covering a full calendar or fiscal year.72 (11)(8) 'State board' means the State Board of Education.73 (b)(1) The state board shall establish a teacher recruitment and retention program. The74 purpose of such program shall be to encourage both new and experienced teachers to seek75 employment with qualifying public schools in high-need subject areas at a qualifying76 public school by providing for a tax credit as provided for set forth in Code Section77 48-7-29.23 to each participating teacher in the amount of $3,000.00 $2,500.00 per school78 year for no more than five school years, which must shall be consecutive, subject to79 conditions as provided for in this Code section, and subject to the exception provided for80 in paragraph (2) of this subsection . The state board is authorized to promulgate rules,81 regulations, policies, and procedures appropriate and necessary to implement and82 administer this program.83 (2) No individual who was eligible to receive a $3,000.00 tax credit under this Code84 section in effect on December 31, 2026, shall have the amount of such tax credit reduced85 pursuant to paragraph (1) of this subsection.86 (c)(1) By October December 1 of each year, the department shall determine which public87 schools in this state are qualifying public schools and shall publish a list of all qualifying88 public schools on the department's website. For purposes of the program, a school that89 has been designated as a qua lifying public school shall be elig ible for selection as a90 participating school for the current school year and for at least the immediately upcoming91 school year. The department shall develop criteria for the selection of no more than 10092 participating qualifying public schools from the total number of qualifying public schools93 and shall publish such selection criteria simultaneously with the publication of the list of94 qualifying public schools on the department's website; provided , however, that such95 criteria shall include prioritizing: qualifying public schools with teacher vacancies in96 high-need subject areas.97 - 4 - LC 44 3572S (A) Public schools that are turnaround eligible schools, as such term is defined in Code98 Section 20-14-45;99 (B) Public schools on the separate list of public schools that performed in the lowest 25100 percent of all public schools required under Code Section 20-2B-29; and101 (C) Comprehensive support and improvement (CSI) schools requir ing mandatory102 state-led interventions pursuant to the federal Every Student Succeeds Act of 2015.103 (2) By December 1 of each year, the department shall select no more than 100104 participating schools and shall publish a list of all participa ting schools on the105 department's website. At this time, the department shall also publish a list of the106 high-need subject areas as determined for each RESA service are a. A school that has107 been designated as a participating school shall be eligible to participate in the program108 for the current school year and for at least the immediately upcoming school year. The109 department shall determine the total number of participating teachers authorized for each110 participating school, as well as the high-need subject areas, which may be filled for each111 participating school.112 (3)(2) The department is authorized to receive applications from teachers who meet the113 eligibility criteria provided for in subsection (e) of this Code section and is authorized to114 share with participating local school systems and participating other public schools such115 applications and related materials submitted by teachers.116 (4)(3) The department is authorized to provide guidance and technica l assistance to117 teachers, participating schools, and local school systems, and other public schools with118 participating schools regarding the program.119 (d) The Office of Student Achievement, in consultation with th e department, s h a l l120 establish program objectives and shall annually measure and eva luate the program. 121 Beginning with the 2023-2024 school year, by December 1 of each year, the Office of122 Student Achievement shall provide to the Governor, to the House Education Committee123 and the Senate Committee on Education and Youth, and to the state board a report covering124 - 5 - LC 44 3572S the immediately preceding school year and including, at a minim um, the following125 information:126 (1) The positions filled by participating teachers with corres ponding information127 regarding the subject matter and grade or grades taught; and128 (2) The length of time participating teachers have been participating in the program.129 (e)(1) In order to be eligible to participate in the program, a teacher shall:130 (A) Have been recently hired by a qualifying public school and shall have as his or her131 primary responsibility the academic instruction and support of students in the areas of132 mathematics; special education; career, technical, and agricult ural education; or133 reading, writing, or English language arts; provided, however, that such teachers in the134 area of reading, writing, or English language arts shall hold a current dyslexia or135 reading endorsement approved by the Professional Standards Comm ission been136 recently hired to teach in a high-need subject area at a participating school;137 (B) Have attained a bachelor's degree in education from a postsecondary educational138 institution with a teacher certification program approved by the Georgia Professional139 Standards Commission; and140 (C) Hold a valid five-year induction or professional certificate issued by the Georgia141 Professional Standards Commission.142 (2) Teachers who meet the eligibility criteria provided for in paragraph (1) of this143 subsection and who wish to participate in the program shall submit to the department a144 completed application to participate in the such program, on a form and in a manner145 prescribed by the department. Each application shall, at a minimum, include:146 (A) A copy of the teacher's school year contract to teach at a participating school; and147 (B) Written verification from the principal or other school pe rsonnel of the148 participating school that the teacher was recently hired as defined in this Code section.149 (3)(A) Eligible teachers who complete the application process prescribed by the150 department shall be accepted to participate in the program on annual basis, subject to151 - 6 - LC 44 3572S continuation of the program and the provisions of subsection (g) of this Code section152 and except for good cause shown by the department.153 (B) A teacher who is accepted by the department to participate in the program shall be154 allowed to continue as a participating teacher in the program on an annual basis for up155 to five school years, which must be consecutive, provided that he or she remains156 employed pursuant to a school year an employment contract as a teacher at the same157 school continuously, regardless of whether the school remains a participating or158 qualifying public school and regardless of whether the particip ating teacher's subject159 area remains a high-need subject area, and subject to continuation of the program and160 the provisions of subsection (g) of this Code section and except for good cause shown161 by the department.162 (C) A participating teacher who is involuntarily transferred t o another school within163 the same participating local school system shall be eligible to continue participating in164 the program on the same terms and conditions as provided in subparagraph (B) of this165 paragraph. A participating teacher who voluntarily transfers to another school shall not166 be eligible to continue participating in the program effective immediately upon the167 transfer.168 (D) A participating teacher who receives an annual summative performance evaluation169 rating of 'Ineffective,' as provided for in Code Section 20-2-210, shall be permanently170 ineligible to participate in the program upon the conclusion of the school year in which171 he or she received such rating.172 (E) A participating teacher who lawfully takes a leave of absence pursuant to any state173 or federal law shall retain eligibility to continue participating in the program, provided174 that he or she remains continuously employed pursuant to an employment a school year175 contract as a teacher at the same school continuously.176 - 7 - LC 44 3572S (f) By July 31 of each year, the department shall notify the state revenue commissioner of177 each participating teacher who has satisfied all terms and conditions of the program for the178 immediately preceding school year.179 (g) The number of participating teachers in the program in any school year shall be limited180 to 1,000 participating teachers 1,200 state wide. In the event that applications exceed 1,200181 participating teachers state wide, the department, in consultat ion with the Professional182 Standards Commission and the Office of Student Achievement, sha ll develop and183 implement rules and procedures for a selection plan with priori ty consideration given to184 participating teachers at qualifying public schools in a rural territory. The department shall185 publish such rules and procedures on its website. In the discretion of the department,186 participation in the program may be determined according to the following order of187 priority:188 (1) Participating teachers shall be prioritized over teachers not yet participating in the189 program; and190 (2) Among teachers participating in the program, those who are currently teaching a191 high-need subject area shall be prioritized over those who are not teaching a high-need192 subject area, and those with greater seniority in the program s hall be prioritized over193 those with less seniority.194 (h) No new applications for the program shall be accepted after December 31, 2026 2031."195 SECTION 2.196 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to197 income tax imposition, rate, computation, exemptions, and credits, is amended by revising198 Code Section 48-7-29.12, relating to tax credits for donation of real property for conservation199 purposes, as follows:200 "48-7-29.12.201 (a) As used in this Code section, the term:202 - 8 - LC 44 3572S (1) 'Conservation easement' means a nonpossessory interest in real property imposing203 limitations or affirmative obligations, the purposes of which are consistent with at least204 two conservation purposes.205 (2) 'Conservation purpose' means any of the following:206 (A) Water quality protection for wetlands, rivers, streams, or lakes;207 (B) Protection of wildlife habitat consistent with state wildlife conservation policies;208 (C) Protection of outdoor recreation consistent with state outdoor recreation policies;209 (D) Protection of prime agricultural or forestry lands; and210 (E) Protection of cultural sites, heritage corridors, or arche ological and historic211 resources.212 (3) 'Donated property' means the real property of which a qual ified donation is made213 pursuant to this Code section.214 (4) 'Eligible donor' means any person who owns an interest in a qualified donation.215 (5) 'Fair market value' means the value of the donated property as determined pursuant216 to subsections (c.1) (d) and (c.2) (e) of this Code section.217 (6) 'Qualified donation' means the fee simple conveyance to th e state; a county, a218 municipality, or a consolidated government of this state; the f ederal government; or a219 bona fide charitable nonprofit organization qualified under the Internal Revenue Code220 and, beginning on January 1, 2014, accredited by the Land Trust Accreditation221 Commission of 100 percent of all right, title, and interest in the entire parcel of donated222 real property, and the donation is accepted by such state, coun ty, municipality,223 consolidated government, federal government, or bona fide chari table nonprofit224 organization for use in a manner consistent with at least two conservation purposes. Such225 term shall also include the donation to and acceptance by the s tate; a county, a226 municipality, or a consolidated government of this state; the f ederal government; or a227 bona fide charitable nonprofit organization qualified under the Internal Revenue Code228 and, beginning on January 1, 2014, accredited by the Land Trust Accreditation229 - 9 - LC 44 3572S Commission of a conservation easement. Any real property which is otherwise required230 to be dedicated pursuant to local government regulations or ord inances or to increase231 building density levels shall not be eligible as a qualified do nation under this Code232 section. Any real property which is used for or associated with the playing of golf or is233 planned to be so used or associated shall not be eligible as a qualified donation under this234 Code section.235 (7) 'Related person' has the meaning provided by shall have the same meaning as set236 forth in Code Section 48-7-28.3.237 (8) 'Substantial valuation misstatement' means a valuation such that the claimed value238 of any property on the appraisal as submitted to the State Prop erties Commission239 Department of Natural Resources is 150 percent or more of the amount determined to be240 the correct amount of such valuation pursuant to subsections (c.1) and (c.2) of this Code241 section by the Department of Natural Resources.242 (b)(1) A taxpayer shall be allowed a state income tax credit against the tax imposed by243 Code Section 48-7-20 or 48-7-21 for each qualified donation under this Code section.244 (2) Except as otherwise provided in paragraph (3) of this subs ection and in245 subsection (d)(f) of this Code section, such credit shall be limited to an amoun t not to246 exceed the lesser of $500,000.00, 25 percent $1 million, 50 percent of the fair market247 value of the donated real property as fair market value is established for the year in which248 the donation occurred, or 25 50 percent of the difference between the fair market value249 and the amount paid to the donor if the donation is effected by a sale of property for less250 than fair market value as established for the year in which the donation occurred.251 (3) Except as otherwise provided in subsection (d)(f) of this Code section, in the case of252 a taxpayer whose net income is determined under Code Section 48-7-23, the aggregate253 total credit allowed to all partners in a partnership shall be limited to an amount not to254 exceed the lesser of $500,000.00, 25 percent $1 million, 50 percent of the fair market255 value of the donated real property as fair market value is established for the year in which256 - 10 - LC 44 3572S the donation occurred, or 25 50 percent of the difference between the fair market value257 and the amount paid to the donor if the donation is effected by a sale of property for less258 than fair market value as established for the year in which the donation occurred.259 (c) No tax credit shall be allowed under this Code section unl ess the taxpayer files with260 the taxpayer's income tax return a copy of the State Property Commission's determination261 and a copy of a certification issued by the Department of Natural Resources that the262 donated property is suitable for conservation purposes and meets the following additional263 requirements, where applicable:264 (1) Subdivision is prohibited for a donated property of less than 500 acres and limited265 to one subdivision for a donated property of 500 acres or more;266 (2) New construction on donated property of structures, roads, impoundments, ditches,267 dumping, or any other activity that would harm the protected conservation values of such268 donation is prohibited on such property;269 (3) New construction on donated property within 150 feet of an y perennial or270 intermittent stream is prohibited;271 (4) A buffer of at least 100 feet on each side of any perennia l streams on donated272 property which ensures at least 75 percent tree canopy evenly distributed after harvest is273 maintained and a buffer of at least 50 feet on each side of any intermittent streams on274 donated property which ensures at least 75 percent tree canopy evenly distributed after275 harvest is maintained;276 (5) Timber and agricultural activities undertaken on the donated property are prohibited277 unless in accordance with best management practices published b y the State Forestry278 Commission or the Soil and Water Conservation Commission, as the case may be;279 (6) New construction on donated property causing more than 1 percent of such property's280 total surface area to be covered by impervious surfaces is prohibited;281 (7) Mining on the property is prohibited; and282 - 11 - LC 44 3572S (8) Planting on the donated property of non-native invasive species listed in Category 1,283 Category 1 Alert, or Category 2 of the 'List of Non-Native Inva sive Plants in Georgia'284 developed by the Georgia Exotic Pest Council is prohibited.285 (c.1)(d) For each application for certification, the Department of Natural Resources shall286 require submission of an appraisal of the qualified donation by the taxpayer along with a287 nonrefundable $5,000.00 application fee; provided, however, tha t the nonrefundable288 application fee for property donated to the state shall be 1 percent of the total value of the289 donation, unless such donation is being made to qualify the state for a federal or state grant. 290 The appraisal required by this subsection shall be a full narrative appraisal and include:291 (1) A certification page, as established by the Uniform Standa rds of Professional292 Appraisal Practice, signed by the appraiser; and293 (2) An affidavit signed by the appraiser which includes a statement specifying:294 (A) The value of the unencumbered property, the total value of the qualified donation295 in gross, and an accompanying statement identifying the methods used to determine296 such values;297 (B) Whether a subdivision analysis was used in the appraisal;298 (C) Whether the landowner or related persons own any other pro perty, the value of299 which is increased as a result of the donation; and300 (D) That the appraiser is certified pursuant to Chapter 39A of Title 43.301 Appraisals received by the Department of Natural Resources shal l be reviewed by the302 Department of Natural Resources to determine whether the appraisal contains a substantial303 valuation misstatement. In reviewing appraisals, the Department of Natural Resources may304 conduct its own appraisal of the property; hire an independent, third-party appraiser to305 conduct an appraisal of the property; or require that the appli cant submit an additional306 appraisal from an independent, third-party appraiser. If the D epartment of Natural307 Resources determines that an appraisal contains a substantial valuation misstatement, the308 Department of Natural Resources shall report the appraiser who prepared the appraisal to309 - 12 - LC 44 3572S the Georgia Real Estate Commission for investigation and, if warranted, disciplinary action310 forwarded to the State Properties Commission for review. The S tate Properties311 Commission shall approve the appraisal amount submitted or recommend a lower amount312 based on its review and inform the Department of Natural Resources of its determination. 313 The State Properties Commission shall be authorized to promulga te any rules and314 regulations necessary to administer the provisions of this subs ection. Any appraisal315 deemed to contain a substantial valuation misstatement shall be submitted to the Georgia316 Real Estate Commission for further investigation and disciplinary action. Upon receipt of317 the State Properties Commission's determination, the Department of Natural Resources318 may proceed with the certification process.319 (c.2)(e) The Board of Natural Resources shall promulgate any rules and regulations320 necessary to implement and administer subsections (c) and (c.1)(d) of this Code section. 321 A final determination by the Department of Natural Resources or the State Properties322 Commission shall be subject to review and appeal under Chapter 13 of Titl e 50, the323 'Georgia Administrative Procedure Act.'324 (d)(f)(1) In no event shall the total amount of any tax credit under this Code section for325 a taxable year exceed the taxpayer's income tax liability. In no event shall the total326 amount of the tax credit allowed to a taxpayer under subsection (b) of this Code section327 exceed $250,000.00 $500,000.00 with respect to tax liability determined under Code328 Section 48-7-20 or $500,000.00 $1 million with respect to tax liability determined under329 Code Section 48-7-21. Any unused tax credit shall be allowed to be carried forward to330 apply to the taxpayer's succeeding five years' tax liability. However, the amount in331 excess of such annual dollar limits shall not be eligible for c arryover to the taxpayer's332 succeeding years' tax liability nor shall such excess amount be claimed by or reallocated333 to any other taxpayer. No such tax credit shall be allowed the taxpayer against prior334 years' tax liability.335 - 13 - LC 44 3572S (2) Only one qualified donation may be made with respect to any real property that was,336 in the five years prior to donation, within the same tax parcel of record, except that a337 subsequent donation may be made by a person who is not a related person with respect338 to any prior eligible donors of any portion of such tax parcel.339 (3)(A) Beginning on January 1, 2016, and ending on December 31, 2021, the aggregate340 amount of tax credits allowed under this Code section shall not exceed $30 million per341 calendar year. For the per iod beginning on June 1, 2022, and e nding on342 December 31, 2026, the aggregate amount of tax credits allowed under this Code343 section shall not exceed $4 million per calendar year. For the period beginning on344 June 1, 2026, and ending on December 31, 2031, the aggregate amount of tax credits345 allowed under this Code section shall not exceed $4 million per calendar year. The346 Department of Natural Resources shall accept no new applications for the tax credits347 allowed under this Code section after December 31, 2026 2031.348 (B) Prior to any renewal of the exemption for donations of rea l property beyond the349 date authorized by subparagraph (A) of this paragraph, the Depa rtment of Natural350 Resources shall provide a report to the Governor, the President of the Senate, the351 Speaker of the House of Representatives, and the chairpersons of the House Committee352 on Ways and Means and the Senate Finance Committee on the activity of the program353 occurring during the preceding years. The report shall include, but not be limited to:354 (i) The number of applications and the total number of acres donated;355 (ii) The value of the qualified donations accepted into the program and which two of356 the five conservation purposes contained in paragraph (2) of su bsection (a) of this357 Code section were the basis for the qualification of the property;358 (iii) The aggregate amount of income tax credits granted pursu ant to this Code359 section; and360 (iv) A listing of the direct and indirect benefits to the state due to the donation of land361 for conservation purposes.362 - 14 - LC 44 3572S (d.1)(g) Any tax credits under this Code section earned by a taxpayer in the taxable years363 beginning on or after January 1, 2013, and previously claimed b ut not used by such364 taxpayer against such taxpayer's income tax may be transferred or sold in whole or in part365 by such taxpayer to another Georgia taxpayer, subject to the following conditions:366 (1) The transferor may make only a single transfer or sale of tax credits earned in a367 taxable year; however, the transfer or sale may involve one or more transferees;368 (2) The transferor shall submit to the department a written notification of any transfer or369 sale of tax credits within 30 days after the transfer or sale o f such tax credits. The370 notification shall include such transferor's tax credit balance prior to transfer, the371 remaining balance after transfer, all tax identification number s for each transferee, the372 date of transfer, the amount transferred, and any other informa tion required by the373 department;374 (3) Failure to comply with this subsection shall result in the disallowance of the tax375 credit until the taxpayer is in full compliance;376 (4) Any unused credit may be carried forward to subsequent taxable years provided that377 the transfer or sale of this tax credit does not extend the time in which such tax credit can378 be used. The carry-forward period for tax credit that is transferred or sold shall begin on379 the date on which the tax credit was originally earned; and380 (5) A transferee shall have only such rights to claim and use the tax credit that were381 available to the transferor at the time of the transfer. To the extent that such transferor382 did not have rights to claim and use the tax credit at the time of the transfer, the383 department shall either disallow the tax credit claimed by the transferee or recapture the384 tax credit from the transferee. The transferee's recourse is against the transferor.385 (e)(1) Whenever:386 (A) Any person prepares an appraisal of the value of property and knows, or387 reasonably should have known, that the appraisal would be used in connection with a388 return or a claim for refund claiming a tax credit under this Code section; and389 - 15 - LC 44 3572S (B) The claimed value of the property on such appraisal as sub mitted to the State390 Properties Commission results in a substantial valuation misstatement with respect to391 such property for purposes of claiming a tax credit under this Code section,392 then such person shall pay a penalty in the amount determined under paragraph (2) of this393 subsection.394 (2) The amount of the penalty imposed under paragraph (1) of t his subsection on any395 person with respect to an appraisal shall be equal to the lesser of:396 (A) The greater of:397 (i) Twenty-five percent of the difference between the amount o f t h e t a x c r e d i t398 claimed on the taxpayer's return or claim for refund and the amount of the tax credit399 to which the taxpayer is actually entitled, to the extent the d ifference is attributable400 to the misstatement described in paragraph (1) of this subsection; or401 (ii) Ten thousand dollars; or402 (B) One hundred twenty-five percent of the gross income receiv ed by the person403 described in paragraph (1) of this subsection for the preparation of the appraisal.404 (3) No penalty shall be imposed under paragraph (1) of this su bsection if the person405 establishes to the satisfaction of the commissioner that the va lue established in the406 appraisal was more likely than not the proper value.407 (4) Except as otherwise provided, the penalty provided by this subsection shall be in408 addition to any other penalties provided by law. The amount of any penalty under this409 subsection shall be assessed within three years after the return or claim for refund with410 respect to which the penalty is assessed was filed, and no proc eeding in court without411 assessment for the collection of such penalty shall be begun after the expiration of such412 period. Any claim for refund of an overpayment of the penalty assessed under this413 subsection shall be filed within three years from the time the penalty was paid.414 (f)(h) No credit shall be allowed under this Code section with respe ct to any amount415 deducted from taxable net income by the taxpayer as a charitable contribution.416 - 16 - LC 44 3572S (g)(i) The commissioner shall promulgate any rules and regulations n ecessary to417 implement and administer this Code section."418 SECTION 3.419 Said article is further amended in Code Section 48-7-29.23, relating to tax credits for teachers420 in the teacher recruitment and retention program, by revising subsection (a) and adding a new421 subsection to read as follows:422 "(a) A taxpayer who is designated by the Department of Educatio n as a participating423 teacher in the teacher recruitment and retention program provid ed for in Code424 Section 20-2-251 shall be allowed a credit against the tax impo sed by Code425 Section 48-7-20 in an amount equal to $3,000.00 as follows:426 (1) For individuals designated by the Department of Education as participating teachers427 on or after January 1, 2027, $2,500.00, except as provided in p aragraph (2) of this428 subsection; and429 (2) For individuals designated by the Department of Education as participating teachers430 on or before December 31, 2026, and for the duration of their eligibility to participate in431 such program, $3,000.00."432 "(b.1) In no event shall the total amount of tax credits under this Code section433 exceed $3 million in any fiscal year. In the event that such amount is not sufficient to pay434 the full tax credit to each eligible recipient, the tax credit for each eligible recipient shall435 be reduced on a pro rata basis."436 SECTION 4.437 (a) Except as otherwise provided in subsection (b) of this sec tion, this Act shall become438 effective upon its approval by the Governor or upon its becoming law without such approval.439 (b) Sections 1 and 3 of this Act shall become effective on January 1, 2027.440 - 17 - LC 44 3572S SECTION 5.441 All laws and parts of laws in conflict with this Act are repealed.442 - 18 -