The Federal Scholarship Tax Credit in Georgia
Last updated: October 2026. Federal regulations are proposed, not final.
How Georgia opted in
On January 20, 2026, Governor Brian Kemp signed IRS Form 15714 at the state Capitol, making Georgia the 9th state to opt into the Federal Scholarship Tax Credit. Georgia appears on the IRS's official list of participating states.
The opt-in was by executive action only. A bill to codify participation into state law (SB 446) passed the Senate 31-21 in February 2026 but died in the House without a floor vote. That means Georgia's participation rests on the governor's election, which is renewable each year.
Open question: 2028 and beyond
Kemp is term-limited. The November 2026 governor's race is rated a toss-up. Whether Georgia continues participating after 2027 depends on the next governor, since the opt-in must be renewed annually and no statute requires it.
Georgia's existing programs
Georgia has two state school choice programs that interact with the federal credit:
State SSO tax credit (since 2008)
Donors who give to Student Scholarship Organizations (SSOs) can claim a state tax credit of up to $2,500 per individual or $5,000 for married couples filing jointly. Donors must get preapproval from the Department of Revenue before donating. The statewide cap rises from $120 million to $150 million for tax years starting January 1, 2027.
Demand already exceeds supply. The 2026 cap was filled on the first day applications opened.
Georgia Promise Scholarship (launched 2025-26)
An education savings account worth up to $6,500 per student per year, available to students zoned for schools in the lowest 25% statewide. About 7,600 students enrolled in the first year out of more than 20,100 applicants. Only about $50 million of the $141 million appropriation was used.
Georgia Promise requires students to leave public school. The federal scholarship does not. Public school families can use federal scholarships for tutoring, books, and supplies while staying enrolled.
How the credits work together
Georgia donors can claim both the state SSO credit and the federal credit, but not on the same dollar. Under proposed federal rules, the federal credit is reduced by any state credit claimed on the same donation.
The clean approach, already recommended by GOAL Scholarship Program (the state's largest SSO): make separate contributions. Give to the state SSO program for the state credit, and give separately to a federal SGO for the federal credit. GOAL has created a separate entity called American GOAL specifically for federal donations.
Whether a student can hold both a Georgia Promise scholarship and a federal SGO scholarship at the same time has not been addressed in final regulations.
Income limits for Georgia families
Students qualify if household income is at or below 300% of the area median income for a family of four. Based on HUD FY2026 data:
| County | Max household income (300% of area median) |
|---|---|
| Fulton, Gwinnett, Cobb, DeKalb | $353,400/year |
| Chatham (Savannah) | $321,900/year |
| Richmond (Augusta) | $271,200/year |
| Muscogee (Columbus) | $257,400/year |
| Bibb (Macon) | $223,200/year |
Estimates based on HUD FY2026 income data. The IRS has not published official 2027 figures, and the income calculation method comes from proposed federal regulations, not final rules.
For Georgia families: how to use it
The program goes live January 1, 2027. Families apply directly to a scholarship organization, not to the state. No SGO list or application process has been published yet. Georgia's list is due to the IRS by February 15, 2027.
Unlike Georgia Promise, the federal scholarship does not require leaving public school. It covers tutoring, books, supplies, technology, and disability services for students who stay enrolled.
For Georgia donors: how to give
Starting January 1, 2027, donate cash to a scholarship organization on Georgia's IRS list and claim a dollar-for-dollar federal tax credit of up to $1,700 per person ($3,400 for married couples filing jointly, under proposed rules). The credit is nonrefundable. Unused amounts carry forward up to five years.
If you also want the state SSO credit, make it a separate donation through the state program with DOR preapproval. Do not try to claim both credits on one gift.
You cannot direct your donation to your own child or any specific student. Only donations to organizations on Georgia's official IRS list qualify.
Scholarship organizations in Georgia
- American GOAL. New federal entity created by GOAL Scholarship Program, Georgia's largest SSO. Georgia GOAL continues to handle state tax credit donations separately.
- Southern Education Foundation. The Atlanta-based organization announced in September 2026 an SGO alliance focused on public school students.
No official SGO list has been published. Under federal rules, Georgia cannot pick and choose. Any organization that meets the federal requirements must be included.
Who runs this in Georgia
No certifying office has been formally announced. The Department of Revenue is the expected agency, since it already administers the state SSO program. The dead SB 446 would have formally designated the revenue commissioner.
Key dates
| Date | Milestone |
|---|---|
| January 20, 2026 | Georgia opts in (Gov. Kemp signs Form 15714) |
| May 11, 2026 | HB 328 signed: state SSO cap rises to $150M for 2027 |
| September 17, 2026 | Southern Education Foundation announces SGO alliance |
| October 1, 2026 | Treasury releases implementing regulations |
| November 3, 2026 | Georgia gubernatorial election (toss-up) |
| January 1, 2027 | Program goes live; donations can begin |
| February 15, 2027 | Georgia's SGO list due to the IRS |
Sources
- IRS: Federal Scholarship Tax Credit, participating states list (accessed October 2026)
- Georgia Dept. of Revenue: Qualified Education Expense Tax Credit (accessed October 2026)
- Georgia Promise Scholarship Program (accessed October 2026)
- Ballotpedia: state participation in the federal K-12 education tax credit program (accessed October 2026)