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HB 628

Income tax; contributions to law enforcement foundations; revise tax credit

2025-2026 Regular Session Introduced by Beth Camp and 3 co-sponsors

House Bill 628 boosts tax credits for donations to law enforcement foundations in Georgia, raising limits to $75M annually and enhancing community support through increased funding.

House Second Readers
#revenueandtaxation #lawenforcementofficersandagencies
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Bill Summary · HB 628

Summary of House Bill 628

Bill Number: HB 628
Title: Income tax; contributions to law enforcement foundations; revise tax credit
Status: House Second Readers
Introduced: February 26, 2025
Effective Date: July 1, 2025 (applicable to taxable years beginning January 1, 2026)

Purpose and Intent

House Bill 628 aims to amend the existing income tax credit provisions related to contributions made to law enforcement foundations in Georgia. The bill seeks to enhance the financial support for these foundations by increasing the allowable contributions and extending the duration of the tax credit program.

Key Provisions

  1. Increased Contribution Limits:

    • The total aggregate amount of tax credits available under this section is set to $75 million per calendar year.
    • Each qualified law enforcement foundation can accept contributions up to $5 million per year, an increase from the previous limit of $3 million.

  2. Tax Credit Amounts:

    • For individual taxpayers:
      • Single individuals or heads of households: Credit for actual contributions or up to $5,000 per tax year, whichever is less.
      • Married couples filing jointly: Credit for actual contributions or up to $10,000 per tax year, whichever is less.
    • For members of limited liability companies, shareholders of Subchapter 'S' corporations, or partners in partnerships, the same $10,000 limit applies.
    • Corporations or entities not covered by the above categories can receive a credit for actual contributions or 75% of their income tax liability, whichever is less.

  3. Preapproval Process:

    • Taxpayers must request preapproval from the Department of Revenue before making contributions.
    • The commissioner will respond within 30 days, approving, denying, or prorating the requested amounts based on availability.
    • Taxpayers must contribute the preapproved amount within 60 days or forfeit the preapproval.

  4. Sunset Extension:

    • The bill extends the sunset date for the tax credit program, allowing it to remain in effect until December 31, 2032.

Impact

  • Beneficiaries: The bill primarily benefits law enforcement foundations by increasing their funding capabilities, which can enhance community policing efforts and support various law enforcement initiatives.
  • Taxpayers: Individuals and corporations making contributions will have increased tax credits, potentially encouraging more donations to law enforcement foundations.
  • State Revenue: The aggregate cap of $75 million may impact state revenue, as it represents a significant amount of tax credits that could reduce tax income.

Procedural Timeline

  • February 26, 2025: Bill introduced and placed in House Hopper.
  • February 27, 2025: First reading in the House.
  • February 28, 2025: Bill moved to House Second Readers for further consideration.

Conclusion

House Bill 628 represents a legislative effort to bolster support for law enforcement foundations through enhanced tax incentives for contributors. By increasing contribution limits and extending the program's duration, the bill aims to foster greater community involvement in supporting law enforcement initiatives across Georgia.

Compiled from official sources — confirm details with the bill’s official record.

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