Georgia

Qualified Education Expense Tax Credit

  • Tax-Credit Scholarship
  • Enacted 2008
  • Launched 2008

Georgia provides dollar-for-dollar tax credits for individual and corporate donations to Student Scholarship Organizations (SSOs), nonprofits that provide private school scholarships.

We do not administer this program.

Eligibility Test Apply

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  •  21,849

    Scholarships Awarded (2023)

  • 89%

    of Students Eligible Statewide

  • 18

    Scholarship Organizations (2023)

  • $4,624

    Average Scholarship Value (2023)

  • 34%

    Value as a Percentage of Public School Per-Student Spending

Georgia’s Qualified Education Expense Tax Credit Participation

Students Participating
Calendar Year
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Student Funding

Use of Funds

Scholarships provided to students are required to be restrictively endorsed and deposited into accounts of participating schools to cover tuition costs for the participating student. Qualified schools can include a pre-kindergarten, elementary, or secondary nonpublic school.

Funding Amount and Source

Private donors fund this program by donating to SSOs and receiving tax credits for their donation, up to certain limits. The maximum scholarship amount given to a student in any given year cannot exceed the average state and local expenditures per student for the state. The Georgia Department of Education determines and publishes the amount annually, no later than January 1. SSOs determine individual scholarship values. Taxpayer donations to SSOs are valued at 100% of the contributions made for the benefit of providing scholarships to students, up to certain caps. Donations and credits are available to individuals and corporations. Each calendar year, until the program cap on credits is met, taxpayers are limited by the following credit limits based upon filing: $2,500 for single filers; $2,500 for married separate filers; $5,000 for married joint filers; $25,000 for individual pass-through owners; 75% of annual tax liability for C-Corp, Trusts, or electing pass-through filers; and 75% of annual tax liability not to exceed a credit of $1 million for businesses that pay insurance premium taxes. The insurance premium tax credit is capped at a total annual amount of $6 million, permitted on a first come, first served basis. Total credits claimed cannot exceed $120 million, meaning roughly 26,000 students can participate, or 1% of Georgia’s K–12 student population.

(Last updated July 15, 2024)

Student Eligibility

All Georgia students are eligible to participate if they attended a public school for at least six weeks immediately prior to receiving a scholarship, or if they are enrolling in pre-kindergarten, kindergarten, or first grade. A student remains eligible until the student graduates high school; reaches the age of 20; or returns to public school, whichever occurs first. Prior public school attendance is waived for students based on zoned attendance assignment if their resident public school is determined by the Office of Student Achievement as a low-performing school; the student is the subject of officially documented cases of school-based physical violence or student-related verbal abuse threatening physical harm; or the student was enrolled in a qualifying home study program for at least one year prior to receiving a scholarship. Scholarships are not needs-based, but SSOs are required to consider financial needs and are permitted to prioritize awards according to student need. 

(Last updated July 15, 2024) 

EdChoice Expert Feedback

Georgia’s tax-credit scholarship program helps nearly 20,000 students access schools that are the right fit for them, but policymakers could do more to expand educational opportunity.  All students are eligible to receive a tax-credit scholarship, making this among the most expansive educational choice programs in the nation. Statewide, 1 percent of students participate in one of Georgia’s private educational choice options (including the Special Needs Scholarship Program).  The average scholarship size is about $4,400, which is about 36 percent of the average expenditure per student at Georgia’s district schools, but the cap on scholarship values is somewhat higher ($12,140 in 2023). Tax credits are worth 100 percent of the value of the contributions to scholarship organizations, but only $120 million in tax credits are available annually, which is equivalent to only 0.47 percent of Georgia’s total K–12 revenue.   To expand access to educational choice, Georgia policymakers should dramatically increase the amount of available tax credits so that every Georgia child is able to receive a scholarship. The program could also be converted into an education savings account to ensure that all students have access to the education that’s the right fit for them, whether private school or a customized course of education.  Georgia’s voucher program generally avoids unnecessary and counterproductive regulations.  (Last updated December 18, 2023) 

Rules and Regulations

Participant and Family Guidelines

  • Income Limit: None
  • Prior Year Public School Requirement: Yes, With Exceptions
  • Enrollment Cap: None
  • Scholarship Cap: $12,857 (2024)
  • Testing Mandates: None

Donor Requirements

  • Credit Value: 100%
  • Per Donor Credit Cap: $2,500 for single filers; $2,500 for married separate filers; $5,000 for married joint filers; $25,000 for individual pass-through owners; 75% of annual tax liability for C-Corp, Trusts, or electing pass-through filers; and 75% of annual tax liability not to exceed a credit of $1 million for businesses that pay insurance premium taxes.
  • Total Tax Credit Cap: $120 million

Education Provider Guidelines

  • Be accredited or in the process of becoming accredited by a recognized accrediting agency
  • Be located in Georgia
  • Comply with the federal Civil Rights Act of 1964
  • Comply with all state laws applicable to private schools

Student Scholarship Organizations (SSO) Requirements:

  • Use at least 92% of contributions for scholarships (up to first $1.5 million received), 94% in excess of $1.5 million and up to $10 million, 95% in excess of $10 million and up to $20 million, 96% in excess of $20 million
  • Be exempt from federal income tax under 501(c)(3)
  • Make scholarships available for more than one school
  • Have an independent board of directors with at least three members
  • Maintain separate accounts for scholarship funds and operating funds
  • May transfer funds to another Student Scholarship Organization
  • Ensure donors cannot designate their donation to any particular student
  • Not also function as or be affiliated with an accrediting agency
  • Solely responsible for qualifying student eligibility
  • Submit annually to the state:
    • Data on accepted contributions and tax credits approved
    • Independent review of financial statements by a certified public accountant, including a signed declaration of compliance with all state and federal legal and regulatory requirements
    • Total number of students and total dollar value of scholarships awarded each year
    • Average scholarship amount by Federal Poverty Level brackets
    • Copy of most recent Form 990
  • Publicly disclose annually:
    • Total number of scholarships approved
    • Total number and amount of donations received
    • Average household income of scholarship recipients

(Last updated July 15, 2024)

Governing Statutes

O.C.G.A. §§ 20-2A-1 through 7 and 48-7-29.16

(Last updated July 15, 2024)