HB 628: Income tax; contributions to law enforcement foundations; revise tax credit

Georgia currently allows taxpayers to get an income tax credit for donations made to qualified law enforcement foundations, which support local police and sheriff's offices. Under current law, each foundation can accept up to $3 million a year in these tax-credited donations, and the credit is set to expire for tax years after 2027. This bill raises that per-foundation cap to $5 million a year and extends the program so the credit applies through tax years ending on or before December 31, 2032. It also clarifies the preapproval process taxpayers must go through before donating, requiring them to request preapproval electronically from the Department of Revenue rather than simply notifying it, and removes language limiting preapproval decisions to being based 'solely' on credit availability. The overall $75 million statewide annual cap on the credit is left unchanged. The changes would take effect July 1, 2025, and apply to tax years beginning on or after January 1, 2026.

• Raises the amount each qualified law enforcement foundation may accept in tax-credited contributions from $3 million to $5 million per calendar year.
• Extends the income tax credit for contributions to law enforcement foundations from expiring after 2027 to expiring after 2032.
• Changes the donation process so taxpayers must request preapproval from the Department of Revenue electronically, rather than just notifying it, before donating.
• Removes wording that limited the commissioner's preapproval decisions to being based 'solely' on the availability of tax credits.
• Clarifies that expired, unused preapproved contribution amounts are excluded when calculating what remains available under both the per-foundation and statewide limits.

Georgia taxpayers, including individuals, married couples, LLC members, S corporation shareholders, partners, and corporations who donate to law enforcement foundations; the qualified law enforcement foundations themselves and the local police and sheriff's offices they support; and the Department of Revenue, which administers the preapproval process.

By raising the per-foundation donation cap and extending the credit five more years, the bill could allow more tax-credited money to flow to local law enforcement foundations over a longer period, while the overall $75 million statewide cap on the credit stays the same.

• Section 1 raises the per-foundation contribution cap in O.C.G.A. § 48-7-29.25(b) from $3 million to $5 million per calendar year.
• Section 1 extends the credit's applicable period from taxable years ending on or before December 31, 2027 to December 31, 2032.
• Section 1 keeps the $75 million aggregate statewide cap on the credit unchanged.
• Section 1 changes the donation notification requirement in subsection (e) to require taxpayers to request preapproval electronically rather than simply notify the department.
• Section 1 removes the word 'solely' describing the basis for the commissioner's preapproval decisions.
• Section 1 clarifies that expired preapproved contribution amounts do not count against either the per-foundation or aggregate annual limits.
• Section 2 sets the effective date as July 1, 2025, applicable to taxable years beginning on or after January 1, 2026.

1. 2025-02-28House Second Readers (Cámara de Representantes)
2. 2025-02-27House First Readers (Cámara de Representantes)
3. 2025-02-26House Hopper (Cámara de Representantes)

• Beth Camp (R, HD-135)Patrocinador principal
• Clint Crowe (R, HD-118)
• Eddie Lumsden (R, HD-012)
• Marcus Wiedower (R, HD-121)

• income tax credits
• law enforcement funding
• police foundations
• state tax policy