Today, the Georgia Department of Revenue (“DOR”) announced that, on January 3, 2023, taxpayer applications for the popular Georgia Education Expense Credit exceeded the $120 million cap on tax credits available in 2023. Applications submitted by the Georgia GOAL Scholarship Program (“GOAL”), Georgia’s largest student scholarship organization (“SSO”), totaled $72.6 million.

Because the $120 million annual cap was met – and exceeded – in one day, the DOR will prorate this amount among all individuals and businesses who submitted applications for their share of the tax credits. The DOR is working to finalize and prorate taxpayer applications accordingly.

Last year, the Georgia General Assembly approved legislation, which, beginning in 2023, increased the annual cap from $100 million to $120 million. The legislation – House Bill 517 – also increased taxpayer contribution limits to $2,500 for single filers, $5,000 for joint filers, and $25,000 for the owners of pass-through businesses, and adopted further SSO reporting requirements as recommended by the Georgia Department of Audits and Accounts.

“We are grateful that Georgia’s elected officials recognize the importance of empowering parents to secure greater opportunities for access to learning. Hopefully, because the annual cap was met on the first day, Georgia lawmakers will approve a significant cap increase that enables thousands of additional low- and middle-income families to attend the schools of their choice,” said Lisa Kelly, President of GOAL. “We trust lawmakers will be further incentivized by several recent studies confirming the significant fiscal savings to states and positive economic impact of GOAL and similar K-12 tax credit scholarship programs.”