The State of Georgia uniquely empowers its citizens with the opportunity pay their state income taxes – an expenditure that they are required to make anyway – through contributing to eligible rural hospitals to improve the financial condition and patient offerings in Georgia’s rural communities. Through the Georgia HEART Hospital Program, individuals and business can Help Enhance Access to Rural Treatment for thousands of Georgians.
Effective in 2022, there is a 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.
All Georgia citizens have the ability, through HEART, to decide how their tax dollars are spent. Georgia taxpayers receive a state income tax credit for 100% of the amount they contribute at these limits (effective January 1 through June 30):
- Individual Filer – up to $5,000
- Married Filing Separately – up to $10,000
- Married Filing Jointly – up to $10,000
- Individual Owner of S-Corp, LLC, or Partnership (Pass-Through Entity) NOT paying tax at entity level – 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
After June 30, for so long as a portion of the annual cap on Georgia HEART rural hospital tax credits is available, individual taxpayers may make unlimited HEART contributions for a corresponding 100% Georgia income tax credit.
In 2022, Georgia taxpayers consumed the $60 million in available rural hospital tax credits by July 1st. Georgia’s legislature increased the 2023 cap to $75 million; however, it is very likely that all credits will be consumed even earlier in 2023.
Credits are awarded on a first-come, first-served basis. Secure yours today by submitting your 2023 HEART tax credit application.
From there, Georgia HEART will take care of the process on your behalf, submitting your tax credit application to the Georgia Department of Revenue in the order in which it is received by HEART, notifying you of your approval and payment deadline (180 days from approval date), and – once you contribute – providing you with the appropriate tax receipt for claiming the credit on your 2023 Georgia income tax return.