For the Department of Revenue Instructional Video please click here.
Available Tax Credits
Beginning in January 2017, individuals and businesses can donate funds to a list of qualified rural hospitals known to be in financial distress and apply for state tax credits in return. A full list of these hospitals can be found here.
Calculating the tax credit differs between individuals, married couples, and corporations.
Individuals can receive a tax credit of $5,000 or 90% of the total amount given, whichever is lesser.
Similarly, married couples filing jointly can receive a tax credit of $10,000 or 90% of the total amount given; again, whichever is lesser.
Lastly, a corporation can receive a tax credit of 75% of the corporation’s income tax liability or 90% of the total amount given, whichever is lesser.
The State of Georgia has made available $180 million in tax credits for donations to rural hospitals, $60 million for each of the three years 2017, 2018 and 2019.
Individual hospitals can accept no more than $4 million for the year. For the first six months of 2017, each hospital can accept no more than $2 million from individual donors and $2 million from corporate donors. If a hospital has not reached its $4 million cap before July 1, it can collect donations from individuals or corporations in any amount for the second half of the year until it reaches the $4 million cap.
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.
The following is a summary of the application process. The Department of Revenue’s advanced summary can be found here.
- 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.