2023 CODE OF GEORGIA › Title 48 - REVENUE AND TAXATION (§§ 48-1-1 — 48-18-1) › Chapter 7 - INCOME TAXES (§§ 48-7-1 — 48-7-170) › Article 2 - IMPOSITION, RATE, AND COMPUTATION; EXEMPTIONS (§§ 48-7-20 — 48-7-42) › Section 48-7-29.21 - [Effective 1/1/2025] [Repealed and Reserved Effective 12/31/2029] Tax credits for qualified education donations for the purpose of awarding grants to public schools

(a)
As used in this Code section, the term:
(1)
"Qualified education donation" means a donation made by a taxpayer to the nonprofit corporation incorporated by the Georgia Foundation for Public Education as provided for in subsection (g.1) of Code Section
20-2-14.1
or, prior to January 1, 2022, to the Public Education Innovation Fund Foundation incorporated pursuant to subsection (b.1) of Code Section
20-14-26.1
for the purpose of awarding grants to public schools in this state.
(2)
"Recipient" means the nonprofit corporation incorporated by the Georgia Foundation for Public Education as provided for in subsection (g.1) of Code Section
20-2-14.1
or the Public Education Innovation Fund Foundation incorporated pursuant to subsection (b.1) of Code Section
20-14-26.1
.
(b)
An individual taxpayer shall be allowed a credit against the tax imposed by this chapter for qualified education donations as follows:
(1)
In the case of a single individual or a head of household, the actual amount donated or $2,500.00 per tax year, whichever is less;
(2)
In the case of a married couple filing:
(A)
A joint return, the actual amount donated or $5,000.00 per tax year, whichever is less; or
(B)
Separate returns, the actual amount donated per individual per tax year or $2,500.00 per individual per tax year, whichever is less; or
(3)
Anything to the contrary contained in paragraph (1) or (2) of this subsection notwithstanding, in the case of an individual who is a member of a limited liability company duly formed under state law, a shareholder of a Subchapter 'S' corporation, or a partner in a partnership, the amount donated or $25,000.00 per tax year, whichever is less; provided, however, that tax credits pursuant to this paragraph shall only be allowed for the portion of the income on which such tax was actually paid by such member of the limited liability company, shareholder of a Subchapter 'S' corporation, or partner in a partnership.
(c)
A corporation or other entity shall be allowed a credit against the tax imposed by this chapter for qualified education donations in an amount not to exceed the actual amount donated or 75 percent of the corporation's income tax liability, whichever is less.
d)
(1)
The tax credit shall not be allowed if the taxpayer designates the taxpayer's qualified education donation for the direct benefit of any particular school or program which the taxpayer's child or children attend.
In soliciting donations, the recipient shall not represent that, in exchange for donating to such recipient, the school a taxpayer's child or children attend shall receive a grant pursuant to subsection (g.1) of Code Section
20-2-14.1
or paragraph (2) of subsection (b.1) of Code Section
20-14-26.1
.
(e)
In no event shall the total amount of the tax credit under this Code section for a taxable year exceed the taxpayer's income tax liability. Any unused tax credit shall be allowed the taxpayer against the succeeding three years' tax liability. No such credit shall be allowed the taxpayer against prior years' tax liability.
(f)
(1)
In no event shall the aggregate amount of tax credits allowed under this Code section exceed:
(A)
$5 million for the tax year ending on December 31, 2023; or
(B)
$15 million for the tax year 2024, and for all subsequent tax years.
(2)
The commissioner shall allow the tax credits on a first come, first served basis.
(3)
For the purposes of paragraph (1) of this subsection, the recipient shall notify a potential donor of the requirements of this Code section. Before making a donation to the recipient, the taxpayer shall electronically notify the department, in a manner specified by the department, of the total amount of donations that the taxpayer intends to make to the recipient. The commissioner shall preapprove or deny the requested amount within 30 days after receiving the request from the taxpayer and shall provide notice to the taxpayer and the recipient of such preapproval or denial which shall not require any signed release or notarized approval by the taxpayer. In order to receive a tax credit under this Code section, the taxpayer shall make the donation to the recipient within 60 days after receiving notice from the department that the requested amount was preapproved. If the taxpayer does not comply with this paragraph, the commissioner shall not include this preapproved donation amount when calculating the limit prescribed in paragraph (1) of this subsection. The department shall establish a web based donation approval process to implement this subsection.
(4)
Preapproval of donations by the commissioner shall be based solely on the availability of tax credits subject to the aggregate total limit established under paragraph (1) of this subsection. The department shall maintain an ongoing, current list on its website of the amount of tax credits available under this Code section.
(g)
In order for the taxpayer to claim a tax credit under this Code section, a confirmation of receipt of donation issued by the recipient shall be attached to the taxpayer's income tax return. However, in the event the taxpayer files an electronic return, such confirmation shall only be required to be electronically attached to the return if the Internal Revenue Service allows such attachments when the return is transmitted to the department. In the event the taxpayer files an electronic return and such confirmation is not attached because the Internal Revenue Service does not, at the time of such electronic filing, allow electronic attachments to the Georgia return, such confirmation shall be maintained by the taxpayer and made available upon request by the commissioner. The confirmation of receipt of donation shall contain the taxpayer's name, address, tax identification number, the amount of the donation, the date of the donation, and the amount of the credit.
(h)
No credit shall be allowed under this Code section with respect to any amount deducted from taxable net income by the taxpayer as a charitable contribution to a bona fide charitable organization qualified under Section 501(c)(3) of the Internal Revenue Code.
(i)
The commissioner shall be authorized to promulgate any rules and regulations necessary to implement and administer the tax provisions of this Code section.
(j)
This Code section shall stand repealed and reserved on December 31, 2029.
Amended by 2024 Ga. Laws 598,§ 1-9, eff. 1/1/2025, app. only to unused tax credits generated during taxable years beginning on or after 1/1/2025.
Amended by 2024 Ga. Laws 457,§ 5-2, eff. 4/23/2024, app. to all taxable years beginning on or after 7/1/2024.
Amended by 2023 Ga. Laws 256,§ 2, eff. 7/1/2023.
Amended by 2023 Ga. Laws 256,§ 1, eff. 7/1/2023.
Amended by 2021 Ga. Laws 157,§ 3, eff. 7/1/2021.
Added by 2017 Ga. Laws 32,§ 2, eff. 4/27/2017.
This section is set out more than once due to postponed, multiple, or conflicting amendments.