Bill > HB328

This bill amends Georgia's tax code to modify the tax credit system for contributions to student scholarship organizations (SSOs). The key changes include increasing the annual aggregate tax credit limit from $120 million to $140 million, reducing the tax credit percentage for insurance companies from 75% to 30% of their state insurance premium tax liability, and eliminating the ability to carry forward unused tax credits to future years. The bill introduces a new provision that allows for additional tax credit preapproval during the second half of each year, with the caveat that such credits will be limited to 95% of the standard amount. The tax credit allocation will continue to be managed on a first-come, first-served basis, with donors required to electronically notify the department of their intended contributions and receive preapproval before making a donation. Student scholarship organizations must continue to file annual reports detailing their fees and assessments. The bill will become effective on July 1, 2025, and will apply to taxable years beginning on or after January 1, 2026, with the aim of providing more structured and controlled tax incentives for contributions to student scholarship organizations.

Budget and Finance

https://www.legis.ga.gov/legislation/70057