Innovative Georgia tax credit benefits rural hospital donors

A new state income tax credit aims to help struggling rural hospitals, according to a news release.

The program, which will go into effect in January, allows donors to rural hospitals to be eligible for tax credits. Among the Middle Georgia hospitals that could qualify for the Rural Hospital Tax Credit program are Crisp Regional Hospital, Dodge County Hospital and Monroe County Hospital.

A final list of hospitals eligible under the program will be release in December. For more information on the tax credit visit www.dch.georgia.gov/rural-hospital-tax-credit.

“It’s been extremely gratifying to watch the Rural Healthcare Reform Bill go from just an idea I had while sitting in church last October, all the way to a powerful tool for rural Georgia to help save its local health care systems,” state Rep. Geoff Duncan, R-Cumming, said in the release.

House Appropriations Chairman Terry England said it’s important that all of the donated money goes directly to the rural hospitals.

The new income tax credit is for either 70 percent of an individual taxpayer’s contribution to an approved rural hospital, or $2,500, whichever is less. For a couple filing jointly, the credit could be 70 percent of the contribution or $5,000, whichever is less. A corporation or fiduciary taxpayer could get a tax credit of up to 70 percent of contributions or 75 percent of income tax liability, according to the release.

Donations of up to $4 million to an approved rural hospital will be eligible for the tax credits, which will be awarded on a first-come, first-serve basis. The statewide cap of tax credits will be $50 million in 2017, $60 million in 2018, and $70 million in 2019. The program is set to expire after three years.

Interested taxpayers must submit an online form to the Georgia Tax Center prior to making a donation.

“This innovative piece of legislation has put Georgia at the forefront of the national conversation for rural healthcare reform and has positioned our state to bring broader healthcare solutions to the table on a national level,” Duncan said.

This story was originally published September 23, 2016 at 6:09 PM with the headline "Innovative Georgia tax credit benefits rural hospital donors."