ATLANTA – Georgia’s rural hospitals tax credit program is continuing to prove popular with Georgians who want to help financially struggling hospitals across the state in return for a tax break.
Taxpayers contributed $74.3 million to eligible rural hospitals last year, nearly reaching the $75 million statewide cap on the program, the Georgia Department of Audits and Accounts reported Monday. Thirty-four of the 54 eligible hospitals received more than $1 million each, while 11 took in less than $500,000.
The General Assembly launched the tax credit program in 2017, allowing taxpayers to reduce their state income tax liability by the amounts they donate. The money goes to hospitals in counties with populations of 50,000 or fewer.
Taxpayers can designate a specific hospital to receive their contribution or, if one is not designated, a hospital is selected based on a ranking of need. Last year, the neediest hospital was Northeast Georgia Medical Center in Dahlonega.
Hospitals reported that most of the money they received in 2023 through the program was spent on capital projects or regular operating expenses.
The legislature originally funded the program with an annual statewide cap of $60 million, which was increased to $75 million in 2023. Lawmakers raised the cap again this year to $100 million, effective with the tax year beginning next January.
However, the cap on individual hospitals remains at $4 million.
The audit concluded that the Georgia Department of Community Health and state Department of Revenue have improved the process for administering the program over the years and generally complied with state law.