Higgins Tax Credit

West Georgia residents have a unique opportunity to take advantage of the Georgia Rural Hospital Expense Tax Credit with a donation to Higgins General Hospital in Bremen and improve the health of their community.

Senate Bill 258 — the Georgia Rural Hospital Expense Tax Credit program — allows Georgia taxpayers to make contributions to select rural hospitals in Georgia, including Higgins General Hospital in Bremen.

Donors to Higgins General Hospital can:

• Benefit from a generous state tax credit
• Keep their state tax dollars local
• Enjoy a federal income tax donation
• Help provide vital medical care for their neighbors, right here in west Georgia

Higgins General Hospital has partnered with Georgia HEART to facilitate donations so state residents can make the most of this unique tax credit opportunity and provide for the health care of thousands of Georgians!

Questions? Answers.

What is the rural hospital organization (RHO) expense tax credit?

The Georgia General Assembly passed legislation that enables Georgia taxpayers receive a state income tax credit for 100 percent of the amount they contribute to qualified rural hospital organizations (up to the limits set forth below).

• Taxpayers who itemize deductions on their federal income tax returns will be able to take a charitable income tax deduction for the entire amount of their contributions
• By replacing their federal itemized deduction for state and local income taxes paid, which is limited to $10,000, with a 100 percent deductible contribution to a rural hospital, taxpayers can realize significant tax savings.

How much can I contribute for a tax credit prior to June 30?

If you pay Georgia income taxes, you are eligible to receive a tax credit for contributing to your designated rural hospital organization from January 1 through June 30 of each taxable year, as follows:

• Individual Filer – 100 percent of the amount contributed, up to a limit of $5,000
• Married Filing Jointly – 100 percent of the amount contributed, up to a limit of $10,000
• Pass Through Entity – 100 percent of the amount contributed, up to a limit of $10,000, so long as they would have paid Georgia income tax in that amount on their share of taxable income from the pass-through entity

How much can I contribute for a tax credit after June 30 each year?

After June 30 of each year, for so long as a portion of the $60 million annual cap on RHO tax credits is available, to offset their Georgia income tax liability, individual taxpayers may make unlimited contributions to RHOs for a corresponding 100% Georgia income tax credit.

• On or before May 15 of each year through June 30, individual taxpayers will be able to ‘make a HEART Appointment’ on the Georgia HEART website to authorize Georgia HEART to submit their post-June 30 tax credit pre-approval forms to the DOR.

Are corporations able to participate?

A “C” Corporation or trust shall be allowed a 100% Georgia income tax credit for contributions to RHOs equal to the amount of the contribution, or 75 percent of the corporation or trust’s income tax liability, whichever is less.

How do I sign up to contribute before June 30?

You can sign up to take advantage of the tax credit in five easy steps:

1. Complete and submit your HEART Tax Credit Form in the Donate Section at www.georgiaheart.org or mail a completed copy of the form to Georgia HEART at 3740 Davinci Court, Suite 375, Peachtree Corners, GA 30092.
2. Georgia HEART will submit your tax credit pre-approval form on your behalf to the Georgia Department of Revenue (DOR).
3. Within 60 days of receiving DOR tax credit pre-approval, send a check made payable to TMC/Higgins General Hospital Inc. to Georgia HEART for deposit to the hospital’s account.
4. Georgia HEART will send you instructions on how to file your contribution confirmation with DOR.
5. You will claim the credit when you file your tax return.

What are the limits on the tax credits available under the Georgia HEART program?

From 2018 through 2024, Georgia taxpayers can access $60 million of RHO tax credits each year, with each qualified RHO having access to $4 million of tax credits (until the total annual $60 million cap is met). During the first six months of each year, a qualified RHO may only accept $2 million of corporate contributions and $2 million of individual contributions.

From January 1 through June 30 of each taxable year, the following limits apply with respect to HEART RHO contributions: 

• In the case of a single individual or a head of household, a 100% Georgia income tax credit for contributions to RHOs, up to a limit of $5,000;
• In the case of a married couple filing a joint return, a 100% Georgia income tax credit for contributions to RHOs, up to a limit of $10,000; and
• An individual who is a member of a limited liability company, shareholder of an “S” Corporation, or partner in a partnership (pass-through entities) is allowed a 100% Georgia income tax credit for up to $10,000 of the amount they contribute to a RHO, so long as they would have paid Georgia income tax in that amount on their share of taxable income from the pass-through entity.
• A “C” Corporation or trust shall be allowed a 100% Georgia income tax credit for contributions to RHOs equal to the amount of the contribution, or 75 percent of the corporation or trust’s income tax liability, whichever is less.