HB 330: Income tax; credits for contributions to law enforcement foundations; revise provisions

Georgia currently offers income tax credits for donations to nonprofits that fund public school grants (O.C.G.A. § 48-7-29.21) and to law enforcement foundations (O.C.G.A. § 48-7-29.25). This bill raises the annual cap on education donation credits from $15 million to $20 million per year but cuts the maximum credit a corporation can claim from 75 percent to 30 percent of its tax liability, and removes the ability to carry unused credits forward to future years. For law enforcement foundations, the bill lets a single foundation support multiple neighboring police or sheriff's departments, or an entire statewide law enforcement support effort, instead of only one local agency. It expands what donated money can pay for, including technology, community engagement activities, and support staff beyond sworn officers. It also lowers the corporate credit rate from 75 to 30 percent, extends the program through 2031, and adds a mid-year 95 percent proration rule once funds run low. The changes take effect July 1, 2025, and apply to tax years starting on or after January 1, 2026.

• Raises the yearly statewide cap on education-donation tax credits (O.C.G.A. § 48-7-29.21) from $15 million to $20 million.
• Cuts the maximum credit a corporation can claim for education donations or law enforcement foundation contributions from 75 percent to 30 percent of its tax liability.
• Removes the three-year carry-forward for unused education donation and law enforcement foundation tax credits, so unused amounts are simply lost.
• Lets a law enforcement foundation support more than one local police or sheriff's department, or serve as a statewide support organization, instead of just one local agency.
• Expands what law enforcement foundation money can pay for, adding technology purchases, community engagement events, and support staff beyond sworn officers.
• Extends the law enforcement foundation tax credit program from ending in 2027 to ending in 2031 and adds a mid-year 95 percent credit proration once yearly funding runs low.

Corporations and individuals who donate to nonprofits funding public school grants or to law enforcement foundations; law enforcement foundations themselves, including those newly eligible to serve multiple agencies or operate statewide; local police departments and sheriff's offices that receive foundation funding; and the Georgia Department of Revenue, which administers preapproval and reporting.

Donors would see smaller maximum credits as a share of their tax bill and could no longer bank unused credits for future years, while more law enforcement foundations, including statewide ones, could compete for a larger $75 million pool of credits to fund police technology, community programs, and support staff.

• Section 1 lowers the corporate education-donation credit cap from 75 percent to 30 percent of tax liability and raises the statewide annual limit to $20 million, removing the prior tiered 2023-2024 caps.
• Section 1 eliminates the three-year carry-forward for unused education donation credits and adds a rule prorating credits to 95 percent for requests made between July 1 and December 31 once yearly funds are nearly exhausted.
• Section 2 redefines 'law enforcement foundation' to allow support for multiple local units or statewide law enforcement, removing the prior 'sole' single-agency requirement.
• Section 2 expands 'qualified expenditures' to include technology purchases, community engagement leases, and support for employees beyond sworn officers.
• Section 2 keeps the $75 million aggregate annual cap and $3 million per-foundation limit but lowers the corporate credit rate to 30 percent and extends the program through December 31, 2031.
• Section 2 removes the three-year carry-forward for law enforcement foundation credits and adds the same mid-year 95 percent proration rule as the education credit.
• Section 2 requires foundations to publish their affiliated agency's prior-year budget online and sets a process for revoking and delisting foundations that fail to fix compliance problems within 90 days.
• Section 3 sets the effective date as July 1, 2025, applying to tax years beginning on or after January 1, 2026.

1. 2025-04-04House Withdrawn, Recommitted (Cámara de Representantes)
2. 2025-03-06House Committee Favorably Reported By Substitute (Cámara de Representantes)
3. 2025-02-11House Second Readers (Cámara de Representantes)
4. 2025-02-10House First Readers (Cámara de Representantes)
5. 2025-02-06House Hopper (Cámara de Representantes)

• Charles Cannon (R, HD-172)Patrocinador principal
• Houston Gaines (R, HD-120)
• Marcus Wiedower (R, HD-121)
• Clint Crowe (R, HD-118)
• Eddie Lumsden (R, HD-012)

• income tax credits
• law enforcement funding
• school donation tax credit
• police foundations
• Georgia tax law