For tax years beginning on or after January 1, 2027, but prior to January 1, 2032, this bill provides that there is allowed a credit of 50% of a monetary contribution made by a qualified business to an eligible charitable organization against the taxes imposed pursuant to the Excise Tax Law of 1999 and the Franchise Tax Law of 1999 in the tax year in which the contribution is made. However, such credit must not exceed $5,000 per qualified business for each contribution made to an eligible charitable organization in a tax year. "QUALIFIED BUSINESS" AND "ELIGIBLE CHARITABLE ORGANIZATION" DEFINED As used in this bill, a "qualified business" means a taxpayer subject to tax under the Excise Tax Law of 1999 and the Franchise Tax Law of 1999, including a C corporation, S corporation, limited liability company, or limited liability partnership, that is approved by the department of revenue for the tax credit in this bill. As used in this bill, an "eligible charitable organization" means an organization that is approved by the governor's office of faith-based and community initiatives ("office") as meeting the eligibility criteria established in this bill, and that meet all of the following criteria:  Is exempt from federal income taxation. Is a nonprofit organization. Has residents of this state comprising at least 50% of the organization's beneficiaries, clients, or users. Has residents of a tier 3 or tier 4 enhancement county, as defined in the Franchise Tax Law of 1999, comprising at least 25% of the organization's beneficiaries, clients, or users. LIMITATIONS ON CONTRIBUTIONS For credits allocated during a tax year from contributions to eligible charitable organizations, this bill provides that no more than 20% of the credits may be allocated for contributions to a single eligible charitable organization, and no more than 10 eligible charitable organizations may be approved by the office. APPLICATION TO OFFICE In order to be approved as an eligible charitable organization, this bill requires the organization to submit an application to the office that describes its specific projects and how the contributions made to the organization are to be used for each project, and that demonstrates that the organization's projects expand this state's values of volunteerism and human flourishing, as determined by the office. The application must be accompanied by a written certification, signed by an officer of the organization under penalty of perjury, confirming the organization's eligibility under this bill. This bill requires the office to review each submitted application to determine whether the organization meets all the criteria to be considered an eligible charitable organization and to notify the organization of its determination. The organization must notify the office within 60 days of any changes that may adversely affect the organization's eligibility status. An organization approved by the office in a tax year must reapply to be approved in a subsequent tax year, and must not be approved for more than three consecutive tax years. APPLICATION TO COMMISSIONER OF REVENUE To claim a credit, this bill requires the taxpayer to file an application with the commissioner of revenue ("commissioner"). The taxpayer must provide the name of the eligible charitable organization receiving funds from the taxpayer and the amount of the contribution. In the application, the taxpayer must certify to the department of revenue ("department") the dollar amount of the contributions made to the eligible charitable organization during the tax year and provide evidence of the contributions as required by the department. AUDITS AND ADDITIONAL FILINGS This bill authorizes the commissioner to conduct audits or require the filing of additional information necessary to substantiate or adjust the amount of the credit allowed by this section and to determine that the taxpayer has complied with all statutory requirements for the credit. NOTICE TO TAXPAYER This bill requires the commissioner to review the documentation submitted by the taxpayer and to notify the taxpayer of the approved credit. UNUSED CREDITS CARRIED FORWARD This bill authorizes unused credit to be carried forward in any tax period until the credit is taken. However, the credit must not be carried forward for more than 25 years. ONE-TIME REPORT On or before January 1, 2027, this bill requires the department to submit a one-time report to the finance, ways and means committee of the senate and the committee of the house of representatives having jurisdiction over finance matters, setting forth the clear, relevant, and ascertainable metrics and data requirements that the department will track under this bill in order to allow the general assembly to measure the effectiveness of the tax expenditure. RULEMAKING This bill authorizes the commissioner to promulgate rules to effectuate this bill.