Georgia rural hospital tax credit increase signed into law

CUTHBERT — Gov. Nathan Deal has signed into law a change to Georgia’s rural hospital tax credit program that officials in the health care industry say will be beneficial to the hospitals receiving funds from the program.

In 2017, Deal signed into law SB 258. The law was enacted to allow individuals and companies the opportunity to direct a portion of their Georgia tax liability to support a rural hospital.

On Wednesday, Deal signed HB 769 into law, improving the incentives for taxpayers wishing to redirect their Georgia income tax liability to help support one or more of the 52 participating hospitals listed at www.georgiaheart.org.

“We are so grateful to be a part of the Georgia HEART program, where we actively see our residents’ tax dollars being spent in our own community,” Southwest Georgia Regional Medical Center CEO Kim Gilman said. “SGRMC reinvests the contribution funds back into the hospital, ultimately benefiting Randolph County and neighboring communities.

The new legislation will go into effect on July 1 and extends through 2021. Enhancements include:

— Georgia income tax credit for contributions to rural hospital organizations will increase from 90 percent to 100 percent;

— Owners of pass-through entities will now qualify as eligible contributors;

— After June 30 of each year, there will not be maximum credit limits on non-corporate contributions to rural hospitals. Prior to July 1, the maximum amount will remain at $5,000 for individual taxpayers and $10,000 for couples filing jointly.

Among the south Georgia hospitals participating in the program are:

​— Irwin County Hospital, Ocilla

— Dorminy Medical Center, Fitzgerald

— Memorial Hospital and Manor, Bainbridge

— Coffee Regional Medical Center, Douglas

— Colquitt Regional Medical Center, Moultrie

— Cook Medical Center, Adel

— Tift Regional Medical Center, Tifton

— Phoebe Sumter Medical Center, Americus

— Southwest Georgia Regional Medical Center, Cuthbert

— Donalsonville Hospital, Donalsonville​

— Crisp Regional Hospital, Cordele

— Brooks County Hospital, Quitman

— South Georgia Medical Center — Berrien Campus, Nashville

— Grady General Hospital, Cairo

— Phoebe Worth Medical Center, Sylvester

— Archbold Medical Center, Thomasville

— Mitchell County Hospital, Camilla

In addition, contributions can be claimed 100 percent on federal returns as a charitable deduction. The Georgia tax credit program allows for a total of $60 million of income tax credits, with each qualified rural hospital having access to a maximum of $4 million of tax credits until the statewide cap is met.

Brian Church, the chief financial officer for Phoebe Putney Health System, mentioned the anticipated change to the program during a Phoebe Putney Memorial Hospital Board of Directors meeting on Wednesday, noting that many donating through the tax credit program are from the Atlanta area.

He also said some of the funding generated from the tax credits have allowed for floor upgrades at Phoebe Worth since the program went into effect.

“This will make this program much more viable,” Church said. “We would prefer Medicaid expansion, but we will take any bread crumbs we can get.”

Qualifying companies may receive a 100 percent tax credit on contributions up to a limit of 75 percent of their total Georgia income tax liability through the program.

Jennifer Parks