Receive a state tax credit while supporting the mission of our hospitals
Georgia lawmakers enacted the Georgia HEART rural hospital organization expense tax credit program to encourage taxpayers throughout Georgia to learn more about the financial and other challenges rural hospitals face and to contribute to improve their financial condition and patient offerings. The state allows for a 100% state tax credit for a contribution, making it attractive to individuals and corporations considering a philanthropic gift to their local rural hospital. You can designate your state tax dollars to support Tift Regional Medical Center for 2019 or 2020 and/or Cook Medical Center (now Southwell Medical) for 2019.
Frequently Asked Questions (FAQ)
What are the limits on the tax credits available under the Georgia HEART program?
From 2018 through 2024, Georgia taxpayers can access $60 million of Rural Hospital Organization (RHO) tax credits each year, with each qualified RHO having access to $4 million of tax credits (until the total annual $60 million cap is met). During the first six months of each year, a qualified RHO may only accept $2 million of corporate contributions and $2 million of individual contributions.
From January 1 through June 30 of each taxable year, the following limits apply with respect to Georgia HEART RHO contributions:
Georgia HEART began accepting 2019 tax credit applications on its website on October 1, 2018.
After June 30 of each year, for so long as a portion of the $60 million annual cap on RHO tax credits is available, to offset their Georgia income tax liability, individual taxpayers may make unlimited contributions to RHOs for a corresponding 100% Georgia income tax credit.
A “C” Corporation or trust shall be allowed a 100% Georgia income tax credit for contributions to RHOs equal to the amount of the contribution, or 75 percent of the corporation or trust’s income tax liability, whichever is less.
What happens if the hospital the taxpayer wants to support has already reached their maximum $4 million annual contribution limit?
In the event that you desire to contribute to a RHO that has already received the maximum amount of contributions for that taxable year, you may choose another qualified RHO, or request Georgia HEART to designate one for you.
Can taxpayers who contribute to student scholarship organizations (“SSOs”) for a Georgia Education Expense Credit also contribute to qualified RHOs for a tax credit?
Yes, and Georgia HEART encourages those taxpayers who have been contributing to SSOs to continue to do so.
What if the amount of tax credit for which a taxpayer is eligible exceeds the taxpayer’s income tax liability?
The total amount of the RHO expense tax credit for a taxable year cannot exceed the taxpayer’s Georgia income tax liability. Any unused tax credit may be used against the taxpayer’s succeeding five years’ tax liability. This tax credit cannot be applied against prior years’ tax liability.
Are there any limits placed on how the RHO to which donors contribute be used?
Yes, RHOs must use contributions for the provision of health care-related purposes, which, in additional to the provision of health care services, includes the use of contributions for capital expenditures that facilitate the provision of health care-related services. Each year, RHOs must report to the DCH how they used the contributions and the DCH reports to lawmakers accordingly.
What is the process for contributing to a RHO for a tax credit?
Because the law limits total tax credits available each year to $60 million, taxpayers who wish to participate in the Georgia HEART hospital tax credit program must be pre-approved by the Georgia Department of Revenue (“DOR”). This simply means that the DOR sets aside a certain amount of the available tax credits specifically for the respective taxpayer. Once the taxpayer submits to Georgia HEART their request for pre-approval, the Georgia HEART team provides the taxpayer with step-by-step instructions for completing the remainder of the process. Details of each step are described below:
Is there a deadline to qualify for the tax credit?
In order to contribute to a RHO for a tax credit, an individual or corporation must satisfy all the required steps by the posted deadlines or prior to December 31st of the applicable tax year, whichever comes first.
How do I obtain pre-approval for the Georgia HEART RHO tax credit contributions?
Georgia HEART has simplified the process for the taxpayer. Simply complete the online pre-approval application request and Georgia HEART will submit your request directly to the DOR for pre-approval. Georgia HEART will communicate with you during each step of the process.
In determining the amount to contribute to a Georgia HEART RHO, how does a taxpayer determine their potential Georgia income tax liability?
If taxpayer income and deductions will not change much from the prior year, the taxpayer can look at Line 16 of the Georgia income tax return (Form 500) for their income tax liability for the prior tax year and estimate their tax liability accordingly. Of course, taxpayers should consult with their tax professionals to secure the best estimate of their upcoming Georgia income tax liability.
Whom may taxpayers contact at Georgia HEART to answer any remaining questions?
A member of the Georgia HEART team will be happy to assist you with any question you may have. Please call the Georgia HEART office at 770-250-5971 or email email@example.com.
For more information, visit www.georgiaheart.org or call 770-250-5971