There is growing recognition nationwide that education tax credits are a productive component in the overall effort to improve K-12 education in America. The success of this program in Georgia led lawmakers to increase the cap on education tax credits last year, from $58 million to $100 million per year.
Involved corporate citizens are essential participants in this endeavor, contributing to state scholarship organizations in exchange for state income tax credits, and thereby enabling deserving families to seek a private K-12 education, if their assigned public schools are not meeting their children's needs.
Georgia is a leader in this endeavor, having offered this opportunity for more than a decade. Hundreds of corporations have contributed to the Georgia GOAL Scholarship Program, receiving a 100% Georgia income tax credit in exchange for their contributions!
In addition to a 100% Georgia income tax credit, is a federal deduction also available for “C” Corporations?
Yes. When the IRS eliminated the federal deductibility of contributions to state income tax credit programs in 2018, they followed up by providing a safe harbor for “C” Corporations [IRS Rev. Proc. 2019-12], indicating that if the contributions to state income tax credit programs constitute ordinary and necessary business expenses, then the businesses may deduct them as such.
Why contribute to GOAL, Georgia’s leading Student Scholarship Organization?
- Makes fiscal sense: Georgia allows a 100% state income tax credit for contributions of up to 75% of a corporation's annual tax liability.
- Impact: Georgia's Education Expense Credit law is giving parents more freedom in choosing the best K-12 education for their children.
- Stewardship: GOAL has used 94.96% of funds raised for scholarships (significantly more than is required by law). GOAL is governed by ten board members from business, philanthropic and education communities.
"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, Business Development Manager, BP Products North America Inc.