GA SB446

Georgia elects to permanently participate in the federal tax credit scholarship program established in 2025 under 26 U.S.C. Section 25F, allowing state taxpayers to earn federal tax credits for contributions to qualifying scholarship granting organizations.

Eligible students must be enrolled in elementary or secondary school and have household income not exceeding 300 percent of area median gross income; scholarships can only be used for qualified education expenses at accredited nonpublic schools that comply with the Civil Rights Act of 1964.

Scholarship granting organizations must provide scholarships to at least 10 students across multiple schools, obligate at least 90 percent of income on scholarships, and maintain separate accounts for scholarship and operating funds.

The state revenue commissioner is designated to submit annual opt-in notices to the U.S. Treasury by October 1 each year (starting 2027), including a list of compliant scholarship granting organizations.

Organizations affiliated with school accreditation entities are prohibited from serving as scholarship granting organizations; the Department of Revenue must issue implementation guidelines by August 1, 2026, with the law applying to tax years beginning January 1, 2026.