HB 0054 - Income tax; increase annual aggregate limit of tax credits available for the qualified education tax credit
Tracking Level: Watch

Sponsor: John Carson
House Committee: Ways and Means
Senate Committee:
Last Action: 1/25/2023 - House Second Readers

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SUMMARY: LC 43 2508

This bill would raise the cap on income tax credits for donations to student scholarship organizations (SSOs) for those groups to give vouchers to students to go to private schools. The cap would increase from $120 million to $200 million.

The program is often referred to as a backdoor voucher due to the roundabout way the student receives the voucher. SSOs work with specific private schools. 

The program began in 2008 with a state cap on income tax credits of $50 million. Individuals could receive up to a $1,000 credit for those filing singly or $2,500 for those filing jointly.  Corporations could receive a credit up to 75% of its income tax liability for donations. 

Today the limits on donations are the value of the donation or up to $2500 for an individual filing single; $5000 for those filing jointly; $25,000 for a member of an LLC, "S" chapter corporation, or partnership; 75% of the income tax liability of corporations; 75% of insurance premium tax liability of insurance companies or insurance company headquarters. 


July 1, 2023, applicable to taxable years beginning January 1, 2024