Program Overview

Overview

Private School Tax Credit

The Qualified Education Expense Credit program (a.k.a. Private School Tax Credit / SSO Tax Credit, etc) was passed into law in 2008 through a piece of legislation named HB 1133.

In 2011, an expansion bill called HB 325 was passed into law redefining scholarship eligibility.
In 2013, HB 283, which redefined the tax credit cap and added a $10k max for pass-through taxpayers, was passed.
In 2018, HB 217 was passed which increased the cap from $58 to $100 million for the next 10 years.
In 2022, HB 517 was passed which eliminated the 10 year sunset provision, increased the tax credit cap to $120 million and increased maximum contribution amounts for nearly every taxpayer type.

Although several changes are apparent from one bill to the next, the bills as a whole are centered around providing tax credits to GA tax payers who wish to support educational opportunities to families seeking educational alternatives to the free Public School option.

Georgia tax payers can make a tax credit contribution to Apogee and receive a dollar-for-dollar GA tax credit. The law also allows for tax credit donors to express their wish of which school should receive the opportunity to access the tax credit contribution monies for tuition scholarships through Apogee.

Bill Highlights

Highlights of the Current Law

These are some of the highlights of the current law:

$120,000,000 in tax credits allocated for the program each year starting in 2023.
Credits allocated on a first-come, first-served basis.
Pass through taxpayers can redirect up to $25,000 each.
Within 60 days of the pre-approval notice from the DOR, donors must make their contributions to Apogee.
Donations to Apogee only count in the same calendar year in which the donation was approved and paid.
Under an IRS adopted ruling, only those taxpayers who are itemizing and who fall under the SALT cap are able to claim the Federal deduction.
All other taxpayers receive a dollar-for-dollar state tax credit and incur no cost for participating in the program.
C-Corps and S-Corps who elect to fund GA tax liability through the entity can allocate the cost of funding the approved tax credit as an expense against revenue, reducing taxable income on the Georgia return by 5.75%.