25 HB 136/AP House Bill 136 (AS PASSED HOUSE AND SENATE) By: Representatives Newton of the 127th, Blackmon of the 146th, Rhodes of the 124th, Cox of the 28th, Prince of the 132nd, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to 1 income taxes, so as to revise and create new tax credits related to children; to increase the 2 state tax credit for certain child and dependent care expenses; to create new tax credits for 3 individuals with children under the age of six, for employers that pay certain child care 4 expenses, and for insurance companies against insurance premium tax liability for 5 contributions to qualified organizations that support foster children and justice involved 6 youth; to provide for terms, conditions, limitations, and procedures for such credits; to revise 7 a tax credit for contributions to foster child support organizations; to expand the 8 organizations that qualify for such contributions; to allow such organizations to include as 9 qualified expenditures certain services for justice involved youth; to provide for the services 10 that are qualified expenditures; to provide for reporting requirements; to provide for 11 certifying and decertifying qualified organizations; to provide for information sharing and 12 limitations thereof; to provide for definitions; to provide for rules and regulations; to provide 13 for a sunset; to provide for related matters; to provide for effective dates and applicability; 14 to repeal conflicting laws; and for other purposes. 15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA: 16 H. B. 136 - 1 -

25 HB 136/AP PART I 17 SECTION 1-1. 18 Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes, 19 is amended by revising Code Section 48-7-29.10, relating to tax credits for qualified child 20 and dependent care expenses, as follows: 21 "48-7-29.10. 22 (a) A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-20 23 for qualified child and dependent care expenses. Such credit shall be determined by 24 applying a percentage to The amount of such credit shall be equal to 50 percent of the 25 amount of the credit provided for in Section 21 of the Internal Revenue Code which is 26 claimed and allowed pursuant to the Internal Revenue Code. Such percentage shall be: 27 (1) Ten percent for all taxable years beginning on or after January 1, 2006, and prior to 28 January 1, 2007; 29 (2) Twenty percent for all taxable years beginning on or after January 1, 2007, and prior 30 to January 1, 2008; and 31 (3) Thirty percent for all taxable years beginning on or after January 1, 2008. 32 (b) In no event shall the total amount of the tax credit under this Code section for a taxable 33 year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed 34 to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax 35 credit shall be allowed the taxpayer against prior years' tax liability. 36 (c) The commissioner shall be authorized to promulgate any rules and regulations 37 necessary to implement and administer this Code section." 38 SECTION 1-2. 39 Said chapter is further amended by adding a new Code section to read as follows: 40 H. B. 136 - 2 -

25 HB 136/AP "48-7-29.27. 41 (a) As used in this Code section, the term 'qualifying child' shall have the same meaning 42 as set forth in Section 24(c) of the Internal Revenue Code, provided that such child has not 43 yet attained age six. 44 (b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed 45 a credit against the tax imposed by Code Section 48-7-20 in an amount equal to $250.00 46 for each qualifying child of the taxpayer. 47 (c) In no event shall more than one taxpayer be allowed the tax credit granted under this 48 Code section for the same qualifying child. In the case of parents or legal guardians who 49 do not file income taxes jointly for any reason, the child shall be the qualifying child for 50 only one parent or legal guardian, which shall be the parent or legal guardian who had 51 custody of the qualifying child for more than one-half of the tax year in question; provided, 52 however, that the noncustodial parent or legal guardian may claim the credit if: 53 (1) A court of competent jurisdiction has unconditionally awarded, in writing, the 54 noncustodial parent or legal guardian the tax credit authorized under this Code section, 55 and such parent or legal guardian attaches a copy of the court order with his or her tax 56 return; or 57 (2) The noncustodial parent or legal guardian attaches a copy of a written declaration 58 made by the custodial parent or legal guardian of a qualifying child that he or she assigns 59 the credit to the noncustodial parent or legal guardian and will not claim the credit 60 allowed under this Code section with respect to such child for such tax year. 61 (d) Notwithstanding the provisions of subsection (b) of this Code section, in the case of 62 any taxable nonresident or part-year resident whose tax was prorated as provided by Code 63 Section 48-7-85, the amount of the credit determined pursuant to such subsection shall be 64 prorated based on the ratio of income taxable to this state as properly reported on Schedule 65 3, Line 9 of the Georgia Form 500 for the taxable year. 66 H. B. 136 - 3 -

25 HB 136/AP (e) In no event shall the total amount of the tax credit under this Code section for a taxable 67 year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed 68 to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax 69 credit shall be allowed the taxpayer against prior years' tax liability. 70 (f) The commissioner shall be authorized to promulgate rules and regulations necessary 71 to implement and administer the provisions of this Code section." 72 SECTION 1-3. 73 Said chapter is further amended by adding a new Code section to read as follows: 74 "48-7-29.28. 75 (a) As used in this Code section, the term: 76 (1) 'Child care facility' means a child care learning center or family child care learning 77 home that is permitted, licensed, or commissioned by the Department of Early Care and 78 Learning pursuant to Chapter 1A of Title 20. 79 (2) 'Eligible child care payments for employees' means payments: 80 (A) Made directly to a child care facility in the name and for the benefit of an 81 employee whose child is enrolled in such facility and is under the age of six; 82 (B) Which total at least $1,000.00 per taxable year for each employee for which such 83 payments are made; and 84 (C) That are made for an employee in addition to, and not in lieu of, any other 85 compensation and benefits for such employee. 86 (b) For taxable years beginning on or after January 1, 2026, a taxpayer shall be allowed 87 a credit against the tax imposed under this article for eligible child care payments for 88 employees in an amount: 89 (1) Equal to $500.00 per child for which such payments are made per taxable year; or 90 (2) Equal to $1,000.00 per child for which such payments are made if it is the first 91 taxable year in which the taxpayer provided eligible child care payments for employees 92 H. B. 136 - 4 -

25 HB 136/AP and prior to such taxable year the taxpayer did not pay for, reimburse for, or otherwise 93 subsidize the costs of child care for employees. 94 (c) The aggregate amount of tax credits allowed pursuant to this Code section shall not 95 exceed $20 million per year. 96 (d) In no event shall the total amount of the tax credit under this Code section for a taxable 97 year exceed the taxpayer's income tax liability. Any unused tax credit shall not be allowed 98 to be carried forward to apply to the taxpayer's succeeding years' tax liability. No such tax 99 credit shall be allowed the taxpayer against prior years' tax liability. 100 (e) A taxpayer seeking to claim a tax credit pursuant to this Code section shall submit an 101 application to the department for preapproval of such tax credit in the manner specified by 102 the department. The department shall preapprove such application within 30 days based 103 on the order in which properly completed applications were submitted. In the event that 104 two or more applications were submitted on the same day and the amount of funds 105 available will not be sufficient to fully fund the amount requested, the department shall 106 prorate the available funds between or among the applicants. 107 (f) The commissioner shall promulgate any rules and regulations necessary to implement 108 and administer the provisions of this Code section. 109 (g) This Code section shall stand repealed and reserved on December 31, 2030." 110 PART II 111 SECTION 2-1. 112 Said chapter is further amended by revising Code Section 48-7-29.24, relating to tax credits 113 for contributions to foster child support organizations, as follows: 114 "48-7-29.24. 115 (a) As used in this Code section, the term: 116 (1) 'Aging foster children' means: 117 H. B. 136 - 5 -

25 HB 136/AP (A) Foster children aged 16 through 18 that would benefit based on projected status at 118 age 18, as determined by the division; and 119 (B) Former foster children up to and including age 21, or age 25 if legally possible, 120 aged 16 through 25 who have not been adopted or reunited with families were in foster 121 care for at least six months after reaching age 14. 122 (2) 'Aging-out program' means a program with the primary function of supporting aging 123 foster children and justice involved youth. 124 (2.1) 'Business enterprise' means any insurance company or the headquarters of any 125 insurance company required to pay the tax provided for in Code Section 33-8-4. 126 (3) 'Division' means the Division of Family and Children Services of the Department of 127 Human Services. 128 (4) 'Foster child support organization' means: 129 (A) The aging-out program of the Technical College System of Georgia Foundation; 130 (B) The aging-out program of the University System of Georgia Foundation, provided 131 that such program is certified by the Governor's Office of Planning and Budget as an 132 aging-out program; or 133 (C) Any domestic nonprofit corporation which maintains nonprofit status under 134 Section 501(c)(3) of the Internal Revenue Code and tax exempt status under Code 135 Section 48-7-25, that has the primary function of: 136 (i) Operating an aging-out program that primarily supports aging foster children or 137 operating as or supporting a Georgia licensed child-placing agency or licensed 138 child-caring institution; or 139 (ii) Disbursing funds directly to one or more of the entities identified in 140 subparagraphs (A) or (B) or division (C)(i) of this paragraph. 141 (4.1) 'Justice involved youth' means youth aged 18 through 25 who: 142 H. B. 136 - 6 -

25 HB 136/AP (A) Were previously or are currently committed to the Department of Juvenile Justice 143 pursuant to a court order as authorized by paragraph (11) of subsection (a) of Code 144 Section 15-11-601; and 145 (B) As a result of such commitment, have been previously placed or are currently 146 placed in a nonsecure facility or community setting. 147 (4.2) 'Mentorship services' means support services directly provided to an aging foster 148 child or justice involved youth by a mentor, such as role modeling, informal counseling, 149 guiding, motivating, and sharing time together. 150 (5) 'Qualified contributions' means the preapproved contribution of funds made during 151 the taxable year by a taxpayer or a business enterprise to a qualified organization under 152 the terms and conditions of this Code section. 153 (6) 'Qualified expenditures' means expenditures made by a qualified organization for the 154 following purposes; provided, however, that such term shall not include any expenditures 155 for which the qualified organization has received or is eligible to receive reimbursement 156 from the division: 157 (A) The costs associated with tuition waivers granted pursuant to Code Section 158 20-3-660; 159 (B) Wraparound services for individuals aging foster children and justice involved 160 youth who are: 161 (1) Enrolled in attending a public or private postsecondary educational institution 162 under a waiver granted pursuant to Code Section 20-3-660; or 163 (2) Enrolled in a program to obtain a high school diploma or its equivalent; 164 (3) Enrolled in a recognized vocational school; or 165 (4) Participating in a registered apprenticeship program, provided that the participant 166 and the organization for which the participant is an apprentice document that the 167 participant is compliant with the rules of the apprenticeship program; or 168 H. B. 136 - 7 -

25 HB 136/AP (C) Mentorship services provided to aging foster children, and justice involved youth; 169 provided, however, that such expenditures shall not include: 170 (1) Compensation for a single mentor which exceeds no mentor shall be compensated 171 in excess of $100.00 per month for an aging foster child or justice involved youth or 172 $500.00 $1,200.00 per year for any aging foster child or justice involved youth; or 173 (2) Payments made to employees of a qualified organization who perform duties 174 other than providing mentorship services for the organization. 175 (7) 'Qualified organization' means a foster child support organization that has been 176 certified and listed by the division pursuant to subsection (d) of this Code section. 177 (8) 'Wraparound services' means services provided directly to aging foster children or 178 justice involved youth to support their education through high school completion, 179 vocational, and postsecondary education services, housing services, vocation services, 180 medical services, counseling services, mentorship services, nutrition services, 181 transportation services, or daily living essentials and clothing, and up to $150.00 $200.00 182 per month in direct cash payments for use on personal necessities. 183 (b)(1) The aggregate amount of tax credits allowed under this Code section shall not 184 exceed $20 million per for calendar year 2025. For calendar years 2026 and after, the 185 aggregate amount of tax credits allowed under this Code section shall not exceed $30 186 million per calendar year, and no more than $10 million of such aggregate amount shall 187 be allowed for business enterprises. 188 (2) Subject to the aggregate limit provided in paragraph (1) of this subsection and the 189 limitations of subsection subsections (b.1), (b.2), and (k) of this Code section, each: 190 (A) Taxpayer taxpayer shall be allowed a credit against the tax imposed by this chapter 191 for qualified contributions made by the taxpayer on or after January 1, 2023, as follows: 192 (A)(i) In the case of a single individual or a head of household, the actual amount of 193 qualified contributions made; 194 H. B. 136 - 8 -

25 HB 136/AP (B)(ii) In the case of a married couple filing a joint return, the actual amount of 195 qualified contributions made; 196 (C)(iii) Anything to the contrary contained in subparagraph (A) or (B) division (i) or 197 (ii) of this paragraph subparagraph notwithstanding, in the case of an individual 198 taxpayer who is a member of a limited liability company duly formed under state law, 199 a shareholder of a Subchapter 'S' corporation, or a partner in a partnership, the actual 200 amount of qualified contributions it made; provided, however, that tax credits 201 pursuant to this paragraph shall only be allowed for the portion of the income on 202 which such tax was actually paid by such member of the limited liability company, 203 shareholder of a Subchapter 'S' corporation, or partner in a partnership; or 204 (D)(iv) In the case of a A corporation or other entity not provided for in 205 subparagraphs (A) divisions (i) through (C) (iii) of this paragraph shall be allowed a 206 credit against the tax imposed by this chapter, for qualified contributions in an amount 207 not to exceed subparagraph, the actual amount of qualified contributions made; and 208 (B) Business enterprise shall be allowed a credit against the tax imposed by Code 209 Section 33-8-4 in an amount equal to its qualified contributions. 210 (b.1) For the period beginning on January 1 and ending on June 30 of each year, an 211 individual a taxpayer shall not be allowed a credit for contributions, and the commissioner 212 shall not preapprove any contributions, that exceed the following limits: 213 (1) In the case of a single individual or a head of household, $2,500.00; 214 (2) In the case of a married couple filing a joint return, $5,000.00; 215 (3) In the case of an individual who is a member of a limited liability company duly 216 formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a 217 partnership, $5,000.00; or 218 (4) In the case of a corporation or other entity not provided for in paragraphs (1) through 219 (3) of this subsection, 10 30 percent of such entity's income tax liability. 220 H. B. 136 - 9 -

25 HB 136/AP (b.2) For the period beginning on July 1 and ending on December 31 of each year, to the 221 extent that the aggregate amounts of tax credits authorized by subsection (b) of this Code 222 section have not been reached, the commissioner shall preapprove, deny, or prorate 223 additional requested amounts on a first come, first served basis and shall provide notice to 224 such taxpayer and the qualified organization of such preapproval, denial, or proration. 225 (b.3) A taxpayer that is preapproved for a tax credit allowed pursuant to this Code section 226 and that does not make a qualified contribution of the total preapproved amount shall be 227 allowed such credit in an amount not to exceed 95 percent of the amount of the qualified 228 contribution actually made by the taxpayer. 229 (c) Not later than October 1, 2022, the The commissioner shall establish a page on the 230 department's public website for the purpose of implementing this Code section. Such page 231 shall contain, at a minimum: 232 (1) A link to the division's web based application for certification as a qualified 233 organization as provided for in subsection (d) of this Code section; 234 (2) The current list of all qualified organizations; 235 (3) The total amount of tax credits remaining and available for preapproval for each year; 236 (4) A web based method for taxpayers or business enterprises seeking the preapproval 237 status for contributions; and 238 (5) The information received by the department from each qualified organization 239 pursuant to paragraph (1) of subsection (g) except for division (g)(1)(B)(iv) of this Code 240 section. 241 (d)(1) The division shall establish and maintain a web based application process for the 242 purpose of certifying foster child support organizations as qualified organizations. At a 243 minimum, such application created by the division shall include an agreement submitted 244 by the applicant to fully comply with the terms and conditions of this Code section. 245 (2) The (A) Subject to the requirements of this subsection, the division shall certify any 246 valid foster child support organization as a qualified organization upon successful 247 H. B. 136 - 10 -

25 HB 136/AP completion of such application process and shall decertify an organization that fails to 248 maintain the requirements to be a qualified organization or that the division determines 249 to have violated any other law. 250 (B) For any foster child support organization that is not a Georgia licensed 251 child-placing agency or licensed child-caring institution or that meets the definition of 252 such term only as set forth in division (a)(4)(C)(ii) of this Code section to be certified 253 as a qualified organization, such organization shall provide documentation 254 demonstrating that for a period of at least two calendar years prior to the submission of 255 its application, the organization has operated an aging-out program and, during that 256 period, has provided services to at least 100 aging foster children or justice involved 257 youth. 258 (C) After receiving certification pursuant to this subsection, each qualified organization 259 other than a Georgia licensed child-placing agency or licensed child-caring institution 260 shall annually demonstrate to the division's satisfaction that it continues to maintain the 261 requirements to be a qualified organization, and shall annually submit to the division 262 a copy of such organization's most recent annual audit. 263 (3) The division shall certify any foster child support organization operating as a Georgia 264 licensed child-placing agency or licensed child-caring institution as a qualified 265 organization within ten days of receipt of a written request or application. 266 (4) The division shall accept a first round of applications for certification as qualified 267 organizations by October 1, 2022, and shall certify and notify such applicants of the 268 division's decision on or before November 30, 2022. Thereafter the division shall 269 establish a process for rolling applications and certifications consistent with the 270 requirements of this Code section. 271 (e)(1) Prior to making a contribution to any qualified organization, the taxpayer or 272 business enterprise shall electronically notify the department, in a manner specified by 273 H. B. 136 - 11 -

25 HB 136/AP the commissioner, of the total amount of contribution that such taxpayer or business 274 enterprise intends to make to such qualified organization. 275 (2) Within 30 days after receiving a request for preapproval of contributions, the 276 commissioner shall preapprove, deny, or prorate requested amounts on a first come, first 277 served basis and shall provide notice to such taxpayer or business enterprise and the 278 qualified organization of such preapproval, denial, or proration. Such notices shall not 279 require any signed release or notarized approval by the taxpayer or business enterprise. 280 The preapproval of contributions by the commissioner shall be based solely on the 281 availability of tax credits subject to the aggregate total limit established under paragraph 282 (1) of subsection (b) of this Code section. 283 (3) Within 60 days after receiving the preapproval notice issued by the commissioner 284 pursuant to paragraph (2) of this subsection, the taxpayer or business enterprise shall 285 contribute the preapproved amount to the qualified organization or such preapproved 286 contribution amount shall expire. The commissioner shall not include such expired 287 amounts in determining the remaining amount available under the aggregate limit for the 288 respective calendar year. 289 (f)(1) Each qualified organization shall issue to each contributor a letter of confirmation 290 of contribution, which shall include the taxpayer's or business enterprise's name, address, 291 tax identification number, the amount of the qualified contribution, the date of the 292 qualified contribution, and the total amount of the credit allowed to the taxpayer or 293 business enterprise. 294 (2)(A) In order for a taxpayer or business enterprise to claim the tax credit allowed 295 under this Code section, all such applicable letters as provided for in paragraph (1) of 296 this subsection shall be attached to the taxpayer's tax return or a business enterprise's 297 tax return provided for in Code Section 33-8-6. 298 (B) If When the taxpayer files an electronic return, such confirmation shall only be 299 required to be electronically attached to the return if the Internal Revenue Service 300 H. B. 136 - 12 -

25 HB 136/AP allows such attachments to be affixed and transmitted to the department. In any such 301 event, the taxpayer shall maintain such confirmation and such confirmation shall only 302 be made available to the commissioner upon request. 303 (C) With respect to a business enterprise's tax return provided for in Code 304 Section 33-8-6, the Commissioner of Insurance is authorized to promulgate rules and 305 regulations regarding the manner in which such letters of confirmation of donations 306 shall be filed in the case of tax returns filed electronically. 307 (3) The commissioner shall allow tax credits for any preapproved contributions made to 308 a qualified organization at the time the contributions were made if such organization was 309 a qualified organization at the time of the commissioner's preapproval of the contributions 310 and the taxpayer or business enterprise has otherwise complied with this Code section. 311 (g)(1) Each qualified organization shall annually submit to the department no later than 312 May 15 July 15 of each year: 313 (A) A complete copy of its IRS Form 990 including applicable attachments, or for any 314 qualified organization that is not required by federal law to file an IRS Form 990, such 315 organization shall submit to the commissioner equivalent information on a form 316 prescribed by the commissioner; provided, however, that, if the organization's IRS 317 Form 990 is not prepared by the filing deadline, the organization shall provide such 318 form at the same time it submits such form to the Internal Revenue Service; and 319 (B) A report detailing the contributions received during the calendar year pursuant to 320 this Code section on a date determined by, and on a form provided by, the 321 commissioner which shall include: 322 (i) The total number and dollar value of individual contributions and tax credits 323 approved. Individual contributions shall include contributions made by those filing 324 income tax returns as a single individual or head of household and those filing joint 325 returns; 326 H. B. 136 - 13 -

25 HB 136/AP (ii) The total number and dollar value of corporate contributions and tax credits 327 approved; 328 (iii) The total number and dollar value of all qualified expenditures made; and 329 (iv) A list of contributors, including the dollar value of each contribution and the 330 dollar value of each approved tax credit; and 331 (v) An accounting of the funds withheld from qualified contributions demonstrating 332 that no more than 20 percent of such funds were withheld from qualified 333 expenditures, as required by subparagraph (j)(1)(A) of this Code section. 334 (2) Except for the information published in accordance with subsection (c) of this Code 335 section, all information or reports relative to this Code section that were provided by 336 qualified organizations to the department shall be confidential taxpayer information, 337 governed by Code Sections 48-2-15, 48-7-60, and 48-7-61, whether such information 338 relates to the contributor or the qualified organization. 339 (h) By April 1 of each year, each qualified organization shall publicly post on its public 340 website in a prominent place: 341 (1) A a copy of its prior year's annual budget financials containing the total amount of 342 funds received from all sources relative to the amount of qualified contributions it 343 received and the total amount and a description of how such contributions were utilized.; 344 and 345 (2) A certification, signed by the chief executive officer of the qualified organization and 346 attested to by an independent accounting firm, which substantially complies with the 347 following statement: 348 'I hereby certify that: 349 (A) The organization has materially complied with the requirements of 350 subparagraph (j)(1)(A) of O.C.G.A. Section 48-7-29.24 in that no more than 20 percent 351 of qualified contributions received by [the qualified organization] were retained by, 352 withheld by, or otherwise paid to the organization; and 353 H. B. 136 - 14 -

25 HB 136/AP (B) The description of how [the qualified organization] utilized the qualified 354 contributions is true and correct.' 355 (i)(1) A taxpayer or business enterprise shall not be allowed to designate or direct the 356 taxpayer's or business enterprise's qualified contributions to any particular purpose or for 357 the direct benefit of any particular individual. 358 (2) A taxpayer or business enterprise that operates, owns, or is a subsidiary of an 359 association, organization, or other entity that contracts directly with a qualified 360 organization shall not be eligible for tax credits allowed under this Code section for 361 contributions made to such qualified organization. 362 (3) In soliciting contributions, no person shall represent or direct that, in exchange for 363 making qualified contributions to any qualified organization, a taxpayer or business 364 enterprise shall receive any direct or particular benefit. The status as a qualified 365 organization shall be revoked for any qualified organization determined to be in violation 366 of this paragraph and shall not be renewed for at least two years. 367 (j)(1)(A) Each qualified organization shall use at least 80 percent of the funds received 368 by it from qualified contributions to make qualified expenditures. Each qualified 369 organization shall maintain accurate and current records of all expenditures of such 370 funds and provide such records to the commissioner upon his or her request. In no 371 event shall a qualified organization retain for its own use or apply to its overhead or 372 administrative expenses more than 20 percent of the funds received pursuant to this 373 Code section. 374 (B) No foster child support organization that meets only the definition of such term as 375 provided in division (a)(4)(C)(ii) of this Code section shall retain more than 2.5 percent 376 of qualified contributions for itself for any reason and shall only serve to pass all of its 377 qualified contributions to one or more qualified organizations that are foster child 378 support organizations as such term is defined in subparagraphs (a)(4)(A), (a)(4)(B), or 379 division (a)(4)(C)(i) of this Code section. 380 H. B. 136 - 15 -

25 HB 136/AP (2) A qualified organization that fails to comply with any of the requirements under this 381 Code section shall be given written notice by the department of such failure to comply 382 by certified mail and shall have 90 days from the receipt of such notice to correct all 383 deficiencies. 384 (3) Upon failure to correct all deficiencies within 90 days, the department shall revoke 385 the foster child support organization's status as a qualified organization and such entity 386 shall be immediately removed from the department's list of organizations. All 387 applications for preapproval of tax credits for contributions to such foster child support 388 organization under this Code section made on or after the date of such removal shall be 389 rejected. 390 (4) Each foster child support organization that has had its status revoked and has been 391 delisted pursuant to this Code section, shall immediately cease all expenditures of funds 392 received relative to this Code section, and shall transfer all of such funds that are not yet 393 expended, to a properly operating qualified organization within 30 calendar days of its 394 removal from the department's list of qualified organizations. 395 (k)(1) No credit shall be allowed under this Code section to a taxpayer for any amount 396 of qualified contributions that were utilized as deductions or exemptions from taxable 397 income. 398 (2) In no event shall the total amount of the tax credit used under this Code section for 399 a taxable year exceed the taxpayer's income tax liability or the business enterprise's state 400 tax liability owed pursuant to Code Section 33-8-4. Any unused tax credit shall be 401 allowed the taxpayer or business enterprise against the succeeding three years' tax 402 liability. No such credit shall be allowed the taxpayer or business enterprise against prior 403 years' tax liability. 404 (l) The chairperson of the House Appropriations Committee and the chairperson of the 405 Senate Committee on Appropriations shall have the authority to request an audit 406 concerning this Code section as a whole or of any one or more qualified organizations. The 407 H. B. 136 - 16 -

25 HB 136/AP commissioner, the state auditor, each qualified organization, each aging-out program, and 408 the director of the division shall cooperate to the full extent necessary to conduct such 409 audits. 410 (m) At the discretion of the commissioner or the director of the division, any suspected 411 misuse of funds contributed or expended pursuant to this Code section shall be forwarded 412 to the Attorney General for investigation and prosecution. 413 (n) The commissioner shall promulgate rules and regulations necessary to implement and 414 administer the provisions of this Code section." 415 SECTION 2-2. 416 Said chapter is further amended in Code Section 48-7-60, relating to confidentiality of tax 417 information, exceptions, authorized inspection by certain officials, furnishing information 418 to local tax authorities, furnishing information to nonofficials, conditions, and effect of Code 419 section, by adding a new subsection to read as follows: 420 "(d.1) The commissioner shall be authorized in his or her sole discretion to share 421 information necessary to efficiently administer and enforce the provisions of this chapter 422 for the purpose of tax credit administration when another state agency has statutory 423 authority to administer such tax credits. Any confidential information furnished pursuant 424 to this Code section shall retain its character as confidential and privileged information. 425 Any person who divulges confidential information obtained pursuant to this Code section 426 shall be subject to the same penalties as provided under Code Section 48-7-61 for unlawful 427 divulgence of confidential taxpayer information." 428 H. B. 136 - 17 -

25 HB 136/AP PART III 429 SECTION 3-1. 430 (a) This Act shall become effective on July 1, 2025, and, except as provided in 431 subsection (b) of this section, shall be applicable to all taxable years beginning on or after 432 January 1, 2026. 433 (b) Section 1-1 of this Act shall be applicable to all taxable years beginning on or after 434 January 1, 2025. 435 SECTION 3-2. 436 All laws and parts of laws in conflict with this Act are repealed. 437 H. B. 136 - 18 -