SUMMARY:  LC 34 5055   LC 34 5120S   LC 34 5145S   LC 34 5223S

Background:  Donations to student scholarship organizations (SSOs) are used to provide vouchers for students to go to private school.  Students qualify if they are Georgia residents eligible to enroll in preK, kindergarten, first grade, or have attended a public school for six weeks.  If the student is zoned for a school considered low-performing by the Office of Student Achievement, was the victim of a documented case of bullying, or has been homeschooled for a year, there is no requirement that the student have attended a public school.  

Currently the cap for income tax credits in exchange for donations to student scholarship organizations is $58 million.  This would phase-in an increase the cap to $100 million

• $58 million cap in 2017
• $150 $65 million cap in 2018
• $157.5 million in 2019
• $165 million in 2020 
• $172.5 million in 2021
• $180 million in all subsequent years
• 10% increase annually if previously announced credits used
• Capped at $100 million 

Unused tax credits can be carried forward

25% of the credits can go to C corporations, trusts, or other similar entities

Credits shall be available for allocation the first 10 business days of each calendar year.  If the total credit requests do not exceed the cap, requests can be accepted through November 1.  If the requests exceed the cap, the credit will be granted pro rata 

The Georgia Budget & Policy Institute's analysis is available here. 

EFFECTIVE DATE:

Effective upon approval by the Governor or becoming law without his signature for tax years beginning January 1, 2017