Tax credit benefit to hospitals negligible so far
Published 12:43 pm Friday, June 30, 2017
- MorgueFile
ATLANTA – Rural hospitals have seen only a slight bump in donations since a new law expanding a tax credit program took effect.
As of June 16, about $480,000 in donations had qualified for a tax credit since May 8, when new legislation took effect, according to the state Department of Revenue. All said, 331 donations had been received.
That brought the total to nearly $1.8 million, which is just a sliver of the $60 million available annually.
State lawmakers sweetened the perk for donors this past session when it became clear the program was not working quickly enough to help cash-strapped rural hospitals.
The bill increased a tax credit from 70 percent to 90 percent and raised the limit for how much donors can give. It also expanded the population threshold, allowing more hospitals to participate.
But Jimmy Lewis, CEO of HomeTown Health, which represents dozens of rural hospitals in Georgia, said it’s too early to know whether the changes will help.
He said some hospitals are holding back on their marketing campaigns until the state regulations are published.
“The sense of urgency is equally as stressing as it has ever been due to continued, ongoing cash shortfalls,” Lewis said.