Polk Medical Center on list for rural hospital tax credits

Individuals, corporations can claim up to 70 percent of donations

Polk Medical Center is one of 47 hospitals that if you donate to the Polk Healthcare Foundation, you’ll get tax credits come time to pay the 2016 bill on April 15 next year.

The state’s Rural Hospital Tax Credit that passed this year released its list of hospitals that qualify on Aug. 23, which with Polk Medical Center on the list means that individuals and corporations will be able to pick up the credit when they file taxes, meaning more money back on the return or less taxes to have to pay on the state level.

House Bill 919, signed into law earlier this year, modified the Georgia Code for indigent hospital care allowing for a new section to be added that then setup the new system for rural hospital credits.

State Rep. Trey Kelley, who sits on the ways and means committee, said he fought hard to ensure that Polk Medical Center was included on the list.

“This tax credit will improve rural health care all across our great state by encouraging communities to unite behind their local healthcare providers,” Kelley said in a brief statement. “Access to health care is a vital aspect in economic development and I am proud that I was able to work with the author of this bill to make sure Polk Medical Center would be covered in this program.”

The important details of the bill for individuals who want to get in on the tax credit have some rules to follow. The law allows for only 70 percent of the actual amount donated, or $2,500 per individual or $5,000 for couples, whichever is less.

Corporations can also get in on the tax credit, limited to 70 percent of the actual amount or 75 percent of the corporation’s income tax, whichever ends up being less when the forms are filed.

So for instance, if a company donates $250,000 and files a $5 million return, the company only gets to claim 70 percent of that $250,000 donation to a rural hospital, not the overall tax return since it is much higher.

However, getting to claim a deduction on $175,000 of a $5 million tax bill is still quite a bit of money the company might get back, if combined with other deductions and tax credits on a yearly return.

The funds will run out by the time 2019 returns are set to be filed, with limits each year in the legislation of how much money will be available in the pool of tax credits.

Credits aren’t to exceed $50 million starting in 2017, $60 million in 2018, and $70 million in 2019.

Polk Medical Center Administrator Matt Gorman explained to the Cedartown-Polk County Hospital Authority in his own announcement about the program the Polk Healthcare Foundation plans to get more information out to potential donors in the coming months to hopefully get as many people involved in taking advantage of donations.

“Once that pot of money is consumed, the credit is done, so there’s an incentive to get in early and turn in tax forms on time to get in on the program before the credit runs out,” Gorman said.

He said that it will be a positive boost for small rural hospitals like Polk Medical Center, because the donations can be used in a variety of ways to help local patients receive the best care without having to travel long distances.

Gorman said discussions on how accounting issues are going to be handled remain to be resolved, but that anyone interested in making donations early in order to get in on tax credits can contact the Polk Healthcare Foundation at 706- 509-3294.