The importance of parents being able to choose the optimal K-12 education for their children has never been greater. Recognizing this fact, our state legislature expanded the GOAL program this year, raising the annual cap to $120 million. Parents know best the academic needs of their children and should not be precluded from a private education, if that is what they desire, even if they cannot afford it.
Through the GOAL education tax credit program, the state of Georgia allows companies to ‘spend’ some of the state income taxes they must pay anyway to provide tuition assistance for eligible students seeking a private K-12 education. A C corporation can receive a Georgia income tax credit for up to 75% of its annual tax liability through this program. Additionally, when a C corporation makes a payment to a charitable organization (like Georgia GOAL), and receives a corresponding state income tax credit, the IRS will treat the business as making an ordinary and necessary business payment for which it can also take a federal deduction. IRS Rev. Proc. 2019-12.
Analysis of the Fiscal and Economic Impact of Georgia’s K-12 Education Expense Credit Program by Kennesaw State University’s Education Economic Center reveals the impressive fiscal and economic benefits of the GOAL Program in its report released November 30, 2020:
- The Program saved Georgia taxpayers $53.2 million in the 2018-2019 academic year alone.
- The Program will generate an estimated $66.4 million in economic benefits related to students who entered ninth grade on scholarships in that year and attained improved educational outcomes.
- 99% of GOAL scholars graduate high school within four years (compared to 82% of traditional public school students). Scholarship students who qualify for free or reduced lunch (FRL) also graduated at a significantly higher rate (98% vs. 77%, respectively).
- 87% of GOAL scholars attend college upon graduation (compared to 68% of Georgia public school students). Scholarship students who qualify for FRL enter college at a rate of 26% higher than similar public school students (84% vs. 58%).
"GOAL and BP have joined forces to create an innovative program that helps provide access to new educational opportunities for deserving Georgia students and their families."
– Kevin Russell, GOAL board member and former business development manager, bp Products North America Inc.