Making a Contribution as a Business
Signed into law in 2008, the Education Tax Credit Program allows individuals and businesses to make scholarship contributions for deserving Georgia students.
Contributors may designate which school(s) receive the scholarship funds, but cannot determine which particular student(s) receives a scholarship.
C-Corporations or Trust
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Frequently Asked Questions
How much can an C-corporation or Trust contribute?
Up to 75% of its Georgia state tax liability.
Can the tax credit be claimed each quarter?
Any person or business paying quarterly estimated taxes has the option to claim 25% of the contribution amount against each quarterly payment.
Can the tax credit be carried forward?
Yes, any unused portion of the tax credit can be carried forward for up to five years.
Can the tax credit be used for previous years liability?
No, the tax credit can only be carried forward.
Can I designate that my contribution will provide a scholarship for particular students?
No. The law is very clear that you can designate your contribution to benefit a particular private school(s) in Georgia, but that you can not direct it to specific students.
Can I choose to support more than one school with my contribution?
Absolutely. Just make that notation during the contribution process and designate how you'd like the funds to be divided and we'll honor your wishes.
Am I required to choose a school(s)?
No. If you'd like to help students no matter which Georgia private school they choose to attend, we have an Undesignated Fund. We utilize this fund to provide scholarship assistance to those eligible students who will not be attending a school that we otherwise have funds available for.
How do I make a contribution?
Please see How to Contribute.
What percentage of a contribution is used for scholarships?
The law requires that a minimum of 92% of contributions be awarded to eligible students as scholarships.
Request to Contribute
Electing Pass-Through Entities
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Who Qualifies?
- S-Corporations
- Partnerships
- Multi-member LLCs
Frequently Asked Questions
What is HB 149 and how can I take advantage of it?
S-Corps and Partnerships are allowed to file their GA income taxes at the entity level and claim up to 75% of their GA state income tax liability in tax credits through ASF.
When this option is utilized, the income earned by the business entity will not be passed on to the shareholder(s) as the entity will pay the GA state taxes (like C-corps do). Since the individual shareholders aren't paying the taxes, the federal SALT cap limitation is negated.
Further, the IRS provides a safe-harbor for S-corps and multi-member LLCs, PCs (and C-Corps as well) to claim state tax credit contributions as an ordinary and necessary business expense deduction on their federal taxes. Therefore, the entire amount of the state taxes paid (whether directly or in conjunction with tax credits) is deducted and shielded from additional federal taxation. This can result in huge savings.
The full amount of the tax credit through ASF can be deducted federally as a business expense?
Yes. In August, 2020, the IRS issued final regulations 2020-17393 making it clear that C-Corps along with specified pass-through entities (S-Corps and Partnerships) can claim state tax credit payments as an ordinary and necessary business expense. Obtaining tax credits through ASF can reduce the federal taxes of S-corps & specified pass-throughs.
Can the tax credit be claimed each quarter?
Any person or business paying quarterly estimated taxes has the option to claim 25% of the contribution amount against each quarterly payment.
Can the tax credit be carried forward?
While the tax credit is a non-refundable, any portion of the tax credit that is not utilized can be carried forward for up to five years. However, if the amount of the tax credit claimed is above what the tax liability ended up being, the excess amount cannot be carried forward.
Can the tax credit be used for previous years liability?
No, the tax credit can only be carried forward.
Can I designate that my contribution will provide a scholarship for particular students?
No. The law is very clear that you can designate your contribution to benefit a particular private school(s) in Georgia, but that you can not direct it to specific students.
Can I choose to support more than one school with my contribution?
Absolutely. Just make that notation during the contributions process and designate how you'd like the funds to be divided and we'll honor your wishes.
Am I required to choose a school(s)?
No. If you'd like to help students no matter which Georgia private school they choose to attend, we have an Undesignated Fund. We utilize this fund to provide scholarship assistance to those eligible students who will not be attending a school that we otherwise have funds available for.
How do I make a contribution?
Please see How to Contribute
What percentage of a contribution is used for scholarships?
The law requires that a minimum of 92% of contributions be awarded to eligible students as scholarships.
Request to Contribute
Insurance Companies
Did you know?
Frequently Asked Questions
I am an insurance company, how much can I contribute?
In 2022, Georgia's HB 517 was signed into law which allows insurance companies to claim 100%, dollar-for-dollar tax credits through the Qualified Education Expense program based on their Georgia state insurance premium tax liability. HB 517 creates a "Business Enterprise" contributor category that is defined as: Any insurance company or the headquarters of any insurance company required to pay the tax provided for in Code Section 33-8-4 (GA Insurance Premium Tax).
How much can a Business Enterprise (Insurance Company) contribute?
Up to 75 percent of the business enterprise's Georgia state insurance premium tax liability. However, individual Business Enterprises are limited to a maximum contribution of $1 million.
Is there an annual cap for Business Enterprises?
Can the tax credit be claimed each quarter?
Any person or business paying quarterly estimated taxes has the option to claim 25% of the contribution amount against each quarterly payment.
Can the tax credit be carried forward?
Yes, any unused portion of the tax credit can be carried forward for up to five years.
Can the tax credit be used for previous years liability?
No, the tax credit can only be carried forward.
Can I designate that my contribution will provide a scholarship for particular students?
No. The law is very clear that you can designate your contribution to benefit a particular private school(s) in Georgia, but that you can not direct it to specific students.
Can I choose to support more than one school with my contribution?
Absolutely. Just make that notation during the contribution process and designate how you'd like the funds to be divided and we'll honor your wishes.
Am I required to choose a school(s)?
No. If you'd like to help students no matter which Georgia private school they choose to attend, we have an Undesignated Fund. We utilize this fund to provide scholarship assistance to those eligible students who will not be attending a school that we otherwise have funds available for.
How do I make my contribution?
Please see How to Contribute.
What percentage of a contribution is used for scholarships?
The law requires that a minimum of 92% of contributions be awarded to eligible students as scholarships.