ATLANTA – Would-be donors are waiting on state lawmakers to sweeten a tax credit benefiting fragile rural hospitals, says a legislator pushing for changes.

Rep. Geoff Duncan, R-Cumming, said he hears from hospitals that there are “checks sitting at the edge of the counters” at these health care facilities.

“There is literally millions of dollars that, as soon as we get this signed into law, that will arrive at 49 rural hospitals,” Duncan said in an interview Friday.

As it is, the program has trailed expectations.

Only about $1 million in tax credits – or 2 percent of the available credits – were claimed in the first month, according to the Department of Revenue. The program started in January.

There is a $50 million annual cap on the credits statewide. Each hospital can raise up to $4 million through the program.

Currently, 70 percent of donations qualify for a tax break. Duncan’s proposal would increase that to 90 percent. If approved, the change would also apply to the earlier donations.

“Essentially, it’s a dollar-for-dollar tax credit when you include the federal deduction that comes with it,” he said.

Duncan said he expects the change to push donations toward the limit.

His bill was approved by the House Ways and Means Committee more than a week ago. It has since lingered in the Rules Committee, which decides what bills go on to the full House of Representatives.

Duncan’s measure would also require hospitals to report any payments to third-party consultants. Some legislators have objected to hospitals paying an Atlanta business to administer the program, dipping into the donations to pay a 6 percent fee.

Most of the hospitals are doing so.

Jill Nolin covers the Georgia Statehouse for CNHI’s newspapers and websites. Reach her at jnolin@cnhi.com.