The Georgia General Assembly has approved legislation that increases the cap on Georgia’s Education Tax Credit to $120 million, beginning in 2023. The legislation – House Bill 517 – received final approval yesterday by both the Senate and House Chamber in the late hours of “Sine Die,” the final day of the legislative session.
In addition to the cap increase, HB 517 (which goes to Governor Brian Kemp for his consideration) removes the sunset (roll-back) on the credit cap. Before the bill’s passage, the current $100 million cap was set to revert to $58 million in 2028.
The legislation also increases taxpayer contribution limits to $2,500 for single filers, $5,000 for joint filers, and $25,000 for the owners of pass-through businesses.
Finally, HB 517 includes enhanced student scholarship organization (“SSO”) reporting recommendations from the Georgia Department of Audits and Accounts.
“Georgia has a highly successful tax credit scholarship program, proven to be working to increase parent satisfaction, increase diversity in private schools throughout Georgia, and dramatically improve state and local budgets through its positive fiscal and economic impact. We are grateful that Georgia’s elected officials recognize the significance of empowering parents to access their desired K-12 education options,” said Lisa Kelly, President of Georgia GOAL Scholarship Program, the largest SSO operating under Georgia’s Education Tax Credit legislation.
Representative John Carson (R-Marietta) sponsored this important legislation and remarked, “I am very proud of my fellow lawmakers in approving an increase in Georgia’s tax credit scholarship program. Under HB 517, more families will be able to choose the school that best meets their child’s needs, Georgia taxpayers will be able to contribute more per family, and the state will have increased transparency, disclosure, and cost savings. Truly a win for everyone, especially Georgia’s kids in need of educational opportunities.”
Speaker of the House David Ralston added, “We recognize the importance of Georgia’s SSO program and are making a further investment to provide students and their parents with greater school choice. I appreciate Chairman Carson’s leadership on this issue and the constructive advocacy leading up to today’s vote.”
The passage of HB 517 marks an important expansion of Georgia’s Education Tax Credit Program, as it sets the annual cap at $120 million per year from 2023 on, with no future reduction. The program began at $50 million in 2008, was increased to $58 million in 2013, and again to $100 million in 2018.
“The passage of this legislation, and its anticipated signing by Governor Brian Kemp, will provide thousands of additional Georgia students the opportunity to access the schools of their parents’ choice,” Kelly said.