**All of the Rural Healthcare Tax Credits for 2018 have been utilized. Should more become available, the Department of Revenue will make an announcement. Please apply again in 2019.**
Available Tax Credits
Beginning in July 1, 2018, individuals and businesses can donate funds to a list of qualified rural hospitals known to be in financial distress and apply for a 100% state tax credit in return. A full list of these hospitals can be found here.
Calculating the tax credit differs between individuals, married couples, and corporations. For the first six months of a given year, caps on tax credits are as follows:
Individuals can receive a tax credit equal to their donation up to $5,000.
Married couples filing jointly can receive a tax credit equal to their donation up to $10,000.
Individuals who are members of an LLC, shareholders of a Subchapter “S” corporation, or partners of a partnership can receive a tax credit equal to their donation up to $10,000.
Lastly, a corporation or other entity can receive a tax credit equaling its donation or up to 75% of the corporation’s income tax liability, whichever is lesser.
From July 1 until the end of a given year, individuals, married couples, LLCs, S-Corps, and partners can receive state tax credits equaling donations up to their total state tax liability. Corporations are still limited to tax credits up to 75% of their state tax liability.
The State of Georgia has made available $60 million in rural hospital tax credits each year through 2021.
Individual hospitals can accept no more than $4 million for the year.
The Application Process
To receive the Rural Hospital Tax Credit, individuals and businesses must apply for pre-approval from the Georgia Department of Revenue before making a donation. The Department of Revenue accepts applications through the Georgia Tax Center.
- Log on to the Georgia Tax Center and follow the link for the Rural Hospital Tax Credit.
- Fill out and submit the electronic form for pre-approval, explaining which qualified hospital or hospitals will receive your donation and in what amount.
Within 30 days of application
- The Department of Revenue will notify you and your selected hospital that the donation has been pre-approved. The notice will include a tax credit certificate number.
Within 60 days of pre-approval
(or by the end of the year for November and December pre-approvals)
- Contact the hospital and inform the staff that you have been preapproved for a donation under the Rural Hospital Tax Credit Program. The hospital will explain the steps for processing the donation.
Within 15 days of your donation
- The hospital will send you a form confirming receipt of your donation. If you do not receive this form, contact the hospital immediately.
Within 30 days of your donation
- Log on to the Georgia Tax Center and fill out a second electronic form that includes your tax credit certificate number, the amount you donated, and the hospital that received the donation.
- Submit your Georgia state tax return by April 16, 2018. Before filing, log on to the Georgia Department of Revenue website and download the Rural Hospital Tax Credit form (a hyperlink to this form will be added when it becomes available). Fill it out the form and submit it with your Georgia tax return.