GOAL for pass-throughs: too good to pass up! 

Favorable state and federal tax laws and regulations allow pass-through businesses to achieve remarkable benefits through the GOAL tax credit: a state tax credit, a federal tax deduction, and a meaningful philanthropic impact! 

1. For “Electing” Pass-Through Entities:
Pass-through businesses may now elect to pay state income taxes at the entity level (“SALT workaround” per Georgia HB 149). Electing pass-through entities may contribute to GOAL at the same generous limits as C corporations:
 

Tax Filing Status Tax Credit Limit
C Corp, Trust, or Pass-Through electing to pay tax at the entity level (HB 149) 75% of annual tax liability

Making the election and GOAL contribution results in a double tax benefit:

2. For Pass-Through Entities not making the HB 149 election:
Georgia lawmakers have just raised the tax credit limit for pass-through owners to a generous $25,000, if the owner would pay that much in Georgia income tax as a result of their pass-through ownership!
 

Tax Filing Status Previous Limit New Limit
Pass-Through Owner (not making HB 149 election) $10,000 $25,000

Hint: Pass-through income required to support a $25,000 GOAL tax credit is $434,783 ($25,000 divided by .0575 = $434,783). Keep in mind that income from the pass-throughs can include both profits (K-1) and wages (W-2) income.

GOAL contributions from non-electing pass-throughs can result in a double tax benefit as well:

*If payment is made with the reasonable expectation of financial return for the business. The IRS regs are generous – indicating the deduction may be available for payments made “for use in projects that improve conditions in the state,” such as improving educational access and outcomes.

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