Student Scholarship Organizations; State of Georgia to participate in the federal tax credit program for contributions of individuals to scholarship granting organizations; provide
Summary
SB 446 amends Georgia law governing student scholarship organizations to align the state with a new federal tax credit program for contributions to scholarship granting organizations. The bill directs the state revenue commissioner to make the necessary elections on behalf of Georgia, notify the U.S. Secretary of the Treasury that the state is opting into the federal credit, and submit a list of qualifying scholarship granting organizations. It also requires the Department of Revenue to publish that list and accept applications from scholarship granting organizations throughout the year for inclusion.
The bill makes conforming changes to Georgia’s existing scholarship organization statutes, including replacing references to “chapter” with “article,” reorganizing the law into two articles, and updating the definition of “qualified education expense” in the state tax credit statute to reference scholarship student organizations operating under the revised article structure. It also bars state agencies from adopting rules or regulations that would expand, interpret, limit, or otherwise diverge from the federal law, regulations, or guidance governing the credit. The act applies to taxable years beginning on or after January 1, 2027.
Impact
SB 446 would change Georgia’s education tax credit framework by formally authorizing state participation in the federal scholarship tax credit program and assigning administrative authority to the state revenue commissioner. It affects Title 20 and Title 48 provisions related to student scholarship organizations and tax credits, while also limiting state agency rulemaking authority in this area. The practical effect is to expand the infrastructure for scholarship-granting organizations and potentially increase private contributions supporting K-12 tuition and fees for eligible schools or programs.
Sentiment
The available voting history suggests the bill had majority support but also meaningful opposition. In the Senate, motions related to SB 446 passed 30-20, indicating a partisan or policy split rather than unanimous agreement. The bill text itself frames the measure as an expansion of parental choice and educational opportunity, which aligns with a generally supportive posture among proponents.
Contention
The main point of contention is likely the policy choice to use tax credits to support private scholarship-granting organizations and, by extension, private school tuition and fees. Supporters emphasize parental choice, educational flexibility, and expanded scholarship support, while opponents appear to have objected enough to produce a substantial 20-vote minority against passage. Another possible point of dispute is the bill’s restriction on state agencies from issuing rules that interpret or modify the federal framework, which limits state-level discretion and may concern those favoring more regulatory oversight.
Electing to participate in the federal tax credit for individual contributions to scholarship granting organizations and increasing the aggregate tax credit limit on the tax credit for low income students scholarship program.
A bill for an act relating to state participation in the federal tax credit program for individual contributions to scholarship granting organizations.(Formerly HF 2308.)
Electing to participate in the federal tax credit for individual contributions to scholarship granting organizations and increasing the aggregate tax credit limit on the tax credit for low income students scholarship program.
A bill for an act relating to state participation in the federal tax credit program for individual contributions to scholarship granting organizations.(See HF 2755.)
"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.
"Opportunity Scholarship Act"; establishes pilot program in Department of Treasury providing tax credits to taxpayers contributing to scholarships for low-income children.