Rural Hospital Organization Expense Tax Credit
By Joe Nagel, Esq., LL.M., CPA
In 2016, the Georgia legislature adopted a state income tax credit effective January 1, 2017 designed to encourage Georgian’s to contribute to qualified rural hospital organizations.
Participation in the Rural Hospital Organization (RHO) expense tax credit program is limited to Georgia rural hospitals that meet qualification criteria established in the law. The maximum contribution permitted is $5,000 per individual, $10,000 for married couples. 90% of the contribution qualifies for an offsetting tax credit. A C Corpration or Trust may receive a 90% tax credt on conribution, up to a limit of 75% of the entitiy’s Georgia income tax liability. Owners of pass-through entities, such as S corporations, limited laibility companies (that have not elected to be taxed as C corporations), or partnerships are not eligible and partners and shareholders of such entities are limited to the tax credit maximums that apply to their status as individual or married taxpayers. For those taxpayers that itemize on their federal income tax return, the RHO contribution might also offer an additional tax benefit of a federal income tax charitable deduction.
If you would like more information on the Georgia Rural Hospital Tax Credit, please contact us at 404-255 7400 or email us at info@hoffmanestatelaw.com.
