Selected Podcast
How to Personally Direct Your Georgia Income Taxes
The Georgia HEART Hospital Program and St. Mary's works together to help rural and critical access hospitals take advantage of an exciting opportunities to increase funding and the ability to provide for the health care needs of thousands of Georgians!
Featuring:
Bria Brown is Manager of Support Services at St. Mary's Good Samaritan.
Lisa Kelly is Executive Director of the Georgia HEART Program.
Lauren Papka is Director, Admin and Support Services.
Bria Brown | Lisa Kelly | Lauren Papka
Bria Brown is Manager of Support Services at St. Mary's Good Samaritan.
Lisa Kelly is Executive Director of the Georgia HEART Program.
Lauren Papka is Director, Admin and Support Services.
Transcription:
Scott Webb (Host): This is Mission In Action, a podcast from St. Mary's Healthcare in Athens, Georgia, focusing on patient centered care under our mission to be a transforming healing presence within our communities. I'm Scott Webb. And today we're discussing the Georgia HEART Program, which is a tax credit program designed to help rural hospitals in Georgia and the members of their communities.
And joining me today are Lisa Kelly. She's Executive Director of the Georgia HEART Program, Bria Brown, she's the Community Benefit and Outreach Coordinator at St. Mary's Good Samaritan Hospital. And I'm also joined by Lauren Papka, she's the Director of Administrative and Support Services at St. Mary's Sacred Heart Hospital.
So, first off, it's great to have you all here. We're going to learn about the Georgia HEART Program today, and I'll start with you, Lisa, what is the Georgia HEART?
Lisa Kelly (Guest): Program Well, Georgia HEART is a very creative solution to something that's been a problem in Georgia for years. And that is, that Georgia lawmakers have been studying how to improve the financial sustainability of our rural hospitals and what they did was unique. We are the only state in the country that has a tax credit program to help rural hospitals. What happens is taxpayers may contribute to a qualified rural hospital organization, and in exchange for that, they receive a 100% Georgia income tax credit. Georgia HEART is the program that manages that tax credit and HEART stands for helping enhance access to rural treatment.
Host: Well, this is a really amazing program and I can't wait to learn more about it. How can someone contribute to HEART in exchange for that tax credit?
Lisa: It's a very simple process and we handle all aspects of it for anyone interested in participating. You simply go to the Georgia HEART website, georgiaheart.org. And you fill out an application to claim some of these tax credits and it takes about 20 seconds to do so. We then submit that application to the Georgia Department of Revenue and you get approved.
In other words, some of those tax credits get assigned to you. You then have until the end of the year to make your payment. And when you file your taxes next spring, what you paid to this hospital literally counts as if you had paid your Georgia income taxes. It's a dollar for dollar credit against your Georgia income tax liability.
Host: Dollar for dollar. I love hearing that and I love easy urls, so it's Georgiaheart.org. Right? Really easy to find Georgiaheart.org. So Lisa, in addition to the state income tax credit, I don't want to be greedy here, but can taxpayers also receive any federal tax benefit?
Lisa: It's a common question. It's not greedy. It's a smart question. And thankfully there is a double tax benefit for business owners. If you own a pass through entity, which is a business like a partnership, an LLC, or an S-corporation, you could make this payment to your local, rural hospital from your business, and it could qualify as an ordinary and necessary business expense for you.
In other words, it could be something like marketing or advertising and you can deduct that payment and get a break on your federal income taxes as a result of making that payment and taking that deduction. At the same time, you are paying something you have to pay anyway, which is your state income taxes.
So, you're getting both the state tax credit and the federal tax deduction. We have seen tremendous momentum and an increase in taxpayer interest in this program as a result of this double tax benefit for pass through business owners.
Host: Yeah, as you say, it's just a smart, it's just good business. This double tax benefit and why not take advantage of it. So, how many rural hospital tax credits are available to Georgia taxpayers each year?
Lisa: So there are 60 million available tax credits under this program every year, but incredibly all 60 million of those tax credits for 2021 have been consumed. They went faster than they have in years. They were. Consumed by the last week in September. But folks are already expressing an interest and already getting in line, to submit their applications for 2022, our system opens to accept 20, 22 applications on November, the first,, customarily. There's not a rush to get those applications in for the next year because, you cannot contribute a large amount until July the first.
However, there's a change. There's a change in the statute in Georgia that is going to allow, pass through businesses to contribute a much larger amount much earlier in the year. That is as a result of HB 1 49, which is going to allow all pass through businesses to elect, to pay taxes at the entity level.
This is going to be a very, positive development for pass through businesses rather than the owners being limited to only a 10,000 salt deduction on their personal income taxes for all the earnings on the business that flow to them. They can now elect to pay their state taxes at the entity. And there is no limit on their salt deductions at the entity level.
This is going to save probably thousands of dollars for business owners. As a result of paying their taxes at the entity level, these pass-through businesses are now treated like C corporations. For purposes of this program, they can contribute up to three fourths of their entire state tax liability to a Georgia heart participating hospital.
In the first half of the year, there's already treated. And growing interest on the part of the CPA community in Georgia and business owners themselves about this phenomenal development. And I do believe this will cause the Georgia heart tax credits to be consumed even faster in 2022. So we encourage you to come to our website on November 1st and submit your application for a 20, 22 tax credit.
Meanwhile, if you've got questions about these new tax developments and anything related to that, please contact our office and we're happy to have.
Host: How can someone contribute to HEART? Is it a difficult or extensive process?
Lisa: It is not. And honestly, George HEART is here to absolutely facilitate, take all the burdens off of the taxpayer in taking advantage of this program. Simply filling out that little application on our website is all you do other than writing the check to make the payment. Every other interaction with the Georgia Department of Revenue and with the hospitals is something that Georgia HEART takes on for you.
So, simply go to our website, complete that form. Any questions that you have, our contact info is on our website or I'd welcome any calls myself and we will facilitate and walk anybody through the process. And one good thing that I think everybody needs to realize, you might be thinking I'd like to do this, but I don't want to do this, this early in the year. I don't want to part with my money until the very end of the year. Bria turning to you. How does this program impact St. Mary's Good Samaritan Hospital? How has it helped? How have the funds been spent and really what's been the impact on your community?
Bria Brown (Guest): Our contributions that we have at St. Mary's Good Samaritan Hospital we're able to continue to provide state of the art care locally, and some of the ways, that our funds have been used from this tax credit program, we have continuation of telemedicine capabilities, improving access to service and care, continued enhancement and expansion of specialty services, ongoing strategic planning with St. Mary's and Trinity Health to ensure the highest quality service to our community, ongoing support for equipment repair and replacement. The level of care that we are able to provide to our community is exceptional. And the credit for that goes to the outstanding support of our community. We are so grateful to all of the people and businesses who contribute to St. Mary's Good Samaritan Hospital. We thank you so much.
Host: Yeah, that's well said. And Lauren, and I want to give you an opportunity, same questions, really about St. Mary's Sacred Heart Hospital. How has the program impacted St. Mary's Sacred Heart Hospital? How has it helped? How have the funds been spent? And most importantly, how has it impacted the community?
Lauren Papka (Guest): And much like Good Samaritan Hospital, Sacred Heart has benefited from countless people that have been able to contribute to the program and help expand and enhance our service lines. some of those services that we've been able to expand, include telemedicine, surgery and anesthesia coverage, as well as hospital medicine and critical care, which has been a tremendously needed in most recent year with the pandemic. But also we're able to add new equipment and replace equipment that we might not otherwise have been able to. And all of these things allow the patients in our area and our community to stay in their community for care. They're not having to drive farther away for specialty services. They're able to get that closer to home, which is good for them, the patient and their family. So, we're very appreciative of this program and what it's meant to our hospital locally, but also to the community that we serve.
Host: Has been really educational. What an amazing program, you know, apply now pay later. Lisa, as we wrap up here, what are your final thoughts or takeaways? What do you really want people to know most about Georgia HEART?
Lisa: I appreciate so much what Bria and Lauren said. And the fact that this program is a creative solution implemented by the Georgia legislature to really empower Georgia taxpayers, to become part of the solution, to improving healthcare in their own communities. It's beautifully done. It's beautifully implemented and it's making a difference for the hospitals.
It's incredibly valuable to their communities. So, I would just encourage people to take advantage of this opportunity and this empowerment that's been provided to you by our state lawmakers and become part of the solution to improving health care in your own hometown That sounds so great. I think we can all identify with being a part of the solution right, and helping our local, rural hospitals, our local communities. And it really sounds like the state of Georgia and Georgia HEART, as you've said today, has really taken the burden off of the residents, off of the taxpayers, the folks who really need the medical care. So what an amazing program, thank you all for your time today. And you all stay well.
Thank you, Scott.
Lauren: Thank you.
Bria: Thank you.
Host: And for more information on the Georgia HEART program, go to Georgiaheart.org. This has been Mission In Action podcast from St. Mary's Healthcare in Athens, Georgia, focusing on how we provide patient centered care under our mission to be a transforming healing presence within our communities. Thanks for listening.
Scott Webb (Host): This is Mission In Action, a podcast from St. Mary's Healthcare in Athens, Georgia, focusing on patient centered care under our mission to be a transforming healing presence within our communities. I'm Scott Webb. And today we're discussing the Georgia HEART Program, which is a tax credit program designed to help rural hospitals in Georgia and the members of their communities.
And joining me today are Lisa Kelly. She's Executive Director of the Georgia HEART Program, Bria Brown, she's the Community Benefit and Outreach Coordinator at St. Mary's Good Samaritan Hospital. And I'm also joined by Lauren Papka, she's the Director of Administrative and Support Services at St. Mary's Sacred Heart Hospital.
So, first off, it's great to have you all here. We're going to learn about the Georgia HEART Program today, and I'll start with you, Lisa, what is the Georgia HEART?
Lisa Kelly (Guest): Program Well, Georgia HEART is a very creative solution to something that's been a problem in Georgia for years. And that is, that Georgia lawmakers have been studying how to improve the financial sustainability of our rural hospitals and what they did was unique. We are the only state in the country that has a tax credit program to help rural hospitals. What happens is taxpayers may contribute to a qualified rural hospital organization, and in exchange for that, they receive a 100% Georgia income tax credit. Georgia HEART is the program that manages that tax credit and HEART stands for helping enhance access to rural treatment.
Host: Well, this is a really amazing program and I can't wait to learn more about it. How can someone contribute to HEART in exchange for that tax credit?
Lisa: It's a very simple process and we handle all aspects of it for anyone interested in participating. You simply go to the Georgia HEART website, georgiaheart.org. And you fill out an application to claim some of these tax credits and it takes about 20 seconds to do so. We then submit that application to the Georgia Department of Revenue and you get approved.
In other words, some of those tax credits get assigned to you. You then have until the end of the year to make your payment. And when you file your taxes next spring, what you paid to this hospital literally counts as if you had paid your Georgia income taxes. It's a dollar for dollar credit against your Georgia income tax liability.
Host: Dollar for dollar. I love hearing that and I love easy urls, so it's Georgiaheart.org. Right? Really easy to find Georgiaheart.org. So Lisa, in addition to the state income tax credit, I don't want to be greedy here, but can taxpayers also receive any federal tax benefit?
Lisa: It's a common question. It's not greedy. It's a smart question. And thankfully there is a double tax benefit for business owners. If you own a pass through entity, which is a business like a partnership, an LLC, or an S-corporation, you could make this payment to your local, rural hospital from your business, and it could qualify as an ordinary and necessary business expense for you.
In other words, it could be something like marketing or advertising and you can deduct that payment and get a break on your federal income taxes as a result of making that payment and taking that deduction. At the same time, you are paying something you have to pay anyway, which is your state income taxes.
So, you're getting both the state tax credit and the federal tax deduction. We have seen tremendous momentum and an increase in taxpayer interest in this program as a result of this double tax benefit for pass through business owners.
Host: Yeah, as you say, it's just a smart, it's just good business. This double tax benefit and why not take advantage of it. So, how many rural hospital tax credits are available to Georgia taxpayers each year?
Lisa: So there are 60 million available tax credits under this program every year, but incredibly all 60 million of those tax credits for 2021 have been consumed. They went faster than they have in years. They were. Consumed by the last week in September. But folks are already expressing an interest and already getting in line, to submit their applications for 2022, our system opens to accept 20, 22 applications on November, the first,, customarily. There's not a rush to get those applications in for the next year because, you cannot contribute a large amount until July the first.
However, there's a change. There's a change in the statute in Georgia that is going to allow, pass through businesses to contribute a much larger amount much earlier in the year. That is as a result of HB 1 49, which is going to allow all pass through businesses to elect, to pay taxes at the entity level.
This is going to be a very, positive development for pass through businesses rather than the owners being limited to only a 10,000 salt deduction on their personal income taxes for all the earnings on the business that flow to them. They can now elect to pay their state taxes at the entity. And there is no limit on their salt deductions at the entity level.
This is going to save probably thousands of dollars for business owners. As a result of paying their taxes at the entity level, these pass-through businesses are now treated like C corporations. For purposes of this program, they can contribute up to three fourths of their entire state tax liability to a Georgia heart participating hospital.
In the first half of the year, there's already treated. And growing interest on the part of the CPA community in Georgia and business owners themselves about this phenomenal development. And I do believe this will cause the Georgia heart tax credits to be consumed even faster in 2022. So we encourage you to come to our website on November 1st and submit your application for a 20, 22 tax credit.
Meanwhile, if you've got questions about these new tax developments and anything related to that, please contact our office and we're happy to have.
Host: How can someone contribute to HEART? Is it a difficult or extensive process?
Lisa: It is not. And honestly, George HEART is here to absolutely facilitate, take all the burdens off of the taxpayer in taking advantage of this program. Simply filling out that little application on our website is all you do other than writing the check to make the payment. Every other interaction with the Georgia Department of Revenue and with the hospitals is something that Georgia HEART takes on for you.
So, simply go to our website, complete that form. Any questions that you have, our contact info is on our website or I'd welcome any calls myself and we will facilitate and walk anybody through the process. And one good thing that I think everybody needs to realize, you might be thinking I'd like to do this, but I don't want to do this, this early in the year. I don't want to part with my money until the very end of the year. Bria turning to you. How does this program impact St. Mary's Good Samaritan Hospital? How has it helped? How have the funds been spent and really what's been the impact on your community?
Bria Brown (Guest): Our contributions that we have at St. Mary's Good Samaritan Hospital we're able to continue to provide state of the art care locally, and some of the ways, that our funds have been used from this tax credit program, we have continuation of telemedicine capabilities, improving access to service and care, continued enhancement and expansion of specialty services, ongoing strategic planning with St. Mary's and Trinity Health to ensure the highest quality service to our community, ongoing support for equipment repair and replacement. The level of care that we are able to provide to our community is exceptional. And the credit for that goes to the outstanding support of our community. We are so grateful to all of the people and businesses who contribute to St. Mary's Good Samaritan Hospital. We thank you so much.
Host: Yeah, that's well said. And Lauren, and I want to give you an opportunity, same questions, really about St. Mary's Sacred Heart Hospital. How has the program impacted St. Mary's Sacred Heart Hospital? How has it helped? How have the funds been spent? And most importantly, how has it impacted the community?
Lauren Papka (Guest): And much like Good Samaritan Hospital, Sacred Heart has benefited from countless people that have been able to contribute to the program and help expand and enhance our service lines. some of those services that we've been able to expand, include telemedicine, surgery and anesthesia coverage, as well as hospital medicine and critical care, which has been a tremendously needed in most recent year with the pandemic. But also we're able to add new equipment and replace equipment that we might not otherwise have been able to. And all of these things allow the patients in our area and our community to stay in their community for care. They're not having to drive farther away for specialty services. They're able to get that closer to home, which is good for them, the patient and their family. So, we're very appreciative of this program and what it's meant to our hospital locally, but also to the community that we serve.
Host: Has been really educational. What an amazing program, you know, apply now pay later. Lisa, as we wrap up here, what are your final thoughts or takeaways? What do you really want people to know most about Georgia HEART?
Lisa: I appreciate so much what Bria and Lauren said. And the fact that this program is a creative solution implemented by the Georgia legislature to really empower Georgia taxpayers, to become part of the solution, to improving healthcare in their own communities. It's beautifully done. It's beautifully implemented and it's making a difference for the hospitals.
It's incredibly valuable to their communities. So, I would just encourage people to take advantage of this opportunity and this empowerment that's been provided to you by our state lawmakers and become part of the solution to improving health care in your own hometown That sounds so great. I think we can all identify with being a part of the solution right, and helping our local, rural hospitals, our local communities. And it really sounds like the state of Georgia and Georgia HEART, as you've said today, has really taken the burden off of the residents, off of the taxpayers, the folks who really need the medical care. So what an amazing program, thank you all for your time today. And you all stay well.
Thank you, Scott.
Lauren: Thank you.
Bria: Thank you.
Host: And for more information on the Georgia HEART program, go to Georgiaheart.org. This has been Mission In Action podcast from St. Mary's Healthcare in Athens, Georgia, focusing on how we provide patient centered care under our mission to be a transforming healing presence within our communities. Thanks for listening.