Georgia will participate in a new federal education tax credit program designed to help families offset the cost of K-12 schooling and related expenses, Gov. Brian Kemp announced Tuesday.
Under the federal One Big Beautiful Bill Act, Georgia taxpayers will be eligible for a dollar-for-dollar tax credit of up to $1,700 beginning Jan. 1, 2027. The credit applies to donations made to state-approved nonprofit scholarship organizations that provide financial assistance to eligible students.
The tax credit is tied to contributions to Scholarship Granting Organizations, or SGOs, which must be recognized by both the state and federal government. These nonprofit organizations use donated funds to provide scholarships to students who meet income and eligibility requirements, including those from families earning no more than 300 percent of their county’s median income.
According to state officials, eligible expenses under the program include private school tuition and fees, tutoring services, special needs support, books and supplies, computers, and transportation costs.
Kemp was joined at Tuesday’s announcement at the Georgia State Capitol by Lt. Gov. Burt Jones and Georgia House Speaker Jon Burns. Supporters of the program said it represents a significant step toward expanding educational choice and flexibility for families across the state.
Georgia’s decision to opt into the federal program builds on the state’s existing tax credit scholarship initiatives and follows similar actions taken by other states under the same federal law. The program places no cap on the total amount of donations individuals or businesses may contribute, though the state must formally recognize eligible SGOs before donations qualify for the tax credit.
Critics of similar programs have argued that tax credits supporting private scholarships could reduce funding for traditional public schools. Supporters counter that the credits provide families with more educational options without directly reducing public school budgets.
The new education tax credit program is part of a broader federal effort to expand school choice nationwide and is scheduled to take effect for Georgia taxpayers during the 2027 tax year.