Qualified Law Enforcement Donation Credit

O.C.G.A. § 48-7-29.25 allows a taxpayer to receive a tax credit for donations made to qualified law enforcement foundations. 

Ga. Code § 48-7-29.25 

Section 48-7-29.25 [Tax credit for law enforcement foundation] 

(A) As used in this Code section, the term: 

(1) "Law enforcement foundation" means any domestic nonprofit corporation with the sole function of supporting one local law enforcement unit through a formal relationship recognized by such local law enforcement unit and which maintains nonprofit status under Section 501(c)(3) of the Internal Revenue Code and tax-exempt status under Code Section 48-7-25. 

(2) "Local law enforcement unit" means any agency, office, or department of a county, municipality, or consolidated government of this state whose primary functions include the enforcement of criminal or traffic laws, preservation of public order, protection of life and property, or the prevention, detection, or investigation of crime. Such term shall include any sheriff's office in this state. Such term shall not include any agency, office, or department conducting similar functions for any court, state board, state authority, state law enforcement division or department, railroad police, or any unit appointed under the authority of Chapter 9 of Title 35 of the Official Code of Georgia Annotated. 

(3) "Qualified contributions" means the pre-approved contribution of funds by a taxpayer to a qualified law enforcement foundation under the terms and conditions of this Code section. 

(4) "Qualified expenditures" means expenditures made by a qualified law enforcement foundation: 

• (i)For salary supplements paid no more than twice annually or training provided directly to law enforcement officers employed by the local law enforcement unit affiliated with such qualified law enforcement foundation; or 
• (ii) For the purchase, lease, maintenance, or improvement of equipment to be used by such officers; or
• To cover any costs incurred by the local law enforcement unit for the operation of an  emergency response team that combines law enforcement officers and behavioral health specialists, provided that such costs shall not include salaries or other regular compensation. 

(5) "Qualified law enforcement foundation" means any law enforcement foundation that has been designated as the sole local law enforcement foundation for a single local law enforcement unit and has been certified and listed by the commissioner pursuant to subsection (d) of this Code section. 

(B) (1) The aggregate amount of tax credits allowed under this Code section shall not exceed $75 million per calendar year. 

Each qualified law enforcement foundation shall be limited to accepting $3 million per year of contributions made under this Code section. 

(2) Subject to the aggregate limit provided in paragraph (1) of this subsection for taxable years beginning on or after January 1, 2023, 

and ending on or before December 31, 2027, each taxpayer shall be allowed a credit against the tax imposed by this 

chapter for qualified contributions made by the taxpayer as follows: 

• (A) In the case of a single individual or a head of household, the actual amount of qualified contributions made or $5,000.00 per tax year, whichever is          
• (B) In the case of a married couple filing a joint return, the actual amount of qualified contributions made or $10,000.00 per tax year, whichever is less;   
• (C) Anything to the contrary contained in subparagraph (A) or (B) of this paragraph notwithstanding, in the case of an individual taxpayer who is a  member of a limited liability company duly formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a partnership, the actual amount of qualified contributions it made or $10,000.00 per tax year, whichever is less; provided, however, that tax credits pursuant to this paragraph shall only be allowed for the portion of the income on which such tax was actually paid by such member of the limited liability company, shareholder of a Subchapter 'S' corporation, or partner in a partnership; or 
• (D) A corporation or other entity not provided for in subparagraphs (A) through (C) of this paragraph shall be allowed a credit against the tax imposed by this chapter, for qualified contributions in an amount not to exceed the actual amount of qualified contributions made or 75 percent of such corporation's or other entity's income tax liability, whichever is less. (3) Nothing in this Code section shall be construed to limit the ability of a local law enforcement unit to receive gifts, grants, and other benefits from any source allowed by law; provided, however, that no local law enforcement unit shall, under this Code section, accept or receive more than $3 million in contributions in any calendar year.

Taxpayer and Credit Information

The taxpayer must electronically submit Form ITQLED-TP1 through the Georgia Tax Center to request pre-approval of the qualified law enforcement donation credit from the Department of Revenue. The Department will not pre-approve any qualified law enforcement donation credit where the Form IT-QLED-TP1 is submitted or filed in any other manner. Please see the Qualified Law Enforcement Donation Credit Pre-approval Instructions for more information.

For more information visit:

https://dor.georgia.gov/qualified-law-enforcement-donation-credit