As of July 1, 2022, the $60 million cap on HEART rural hospital tax credits was met - and exceeded. There are no additional credits available. HEART will begin accepting 2023 tax credit applications on Monday, October 3rd at 9:00am.
Our state is the only one in the nation that offers a 100% state income tax credit in exchange for your contribution to eligible rural hospitals. In other words, the state of Georgia is allowing you to ‘spend’ some of the taxes you must pay anyway to improve our hospital’s financial condition and patient offerings.
Notably, effective in 2022, there is a brand-new benefit for pass-through businesses, allowing a SALT (state & local income tax) limit workaround, coupled with a more generous HEART tax credit opportunity during the first six months of the year, per Georgia HB 149.
Pass-through businesses may elect to pay state income tax at the entity level and may contribute to eligible rural hospitals through the HEART program at the same generous limits as C corporations (effective in 2022).
If you pay Georgia income taxes, you are eligible to receive a 100% state income tax credit for contributing to your designated rural hospital organization, as follows (January through June):
- Individual Filer – up to $5,000
- Married Filing Jointly – up to $10,000
- C Corporation, Trust, or Pass-Through Entity electing to pay tax at entity level – up to 75% of Georgia Tax Liability
- Individual Owner of S-Corp, LLC, or Partnership (Pass-Through Entity) NOT paying tax at entity level – up to $10,000
After June 30 of 2022, for so long as a portion of the $60 million cap on RHO tax credits is available, individual taxpayers may make unlimited contributions to RHOs for a corresponding 100% Georgia income tax credit.
Follow these easy steps to sign up to contribute for your 100% tax credit:
- Complete and submit your 2022 HEART Tax Credit Form (takes just 20 seconds!)
- Georgia HEART will submit your tax credit pre-approval form on your behalf to the Georgia Department of Revenue (DOR) in the order in which it is received
- Within 180 days of receiving DOR tax credit pre-approval, send a check made payable to your designated rural hospital to Georgia HEART for deposit to the hospital’s account
- Georgia HEART will report your contribution to the DOR on your behalf and will send you a tax receipt
- You will claim the credit when you file your 2022 Georgia income tax return