Georgia Student Scholarship Organization

Georgia Department of Audits & Accounts

Qualified Education Expense Credit and Student Scholarship Program Report

The Georgia Department of Audits & Accounts analysis highlights that the QEE Tax Credit Program results in $61.4 million in reduced costs at the state and local levels.

Georgia’s Qualified Education Expense Tax Credit Legislation

(2008) GA HB 1133

Georgia lawmakers passed the tuition tax credit into law

Available credits: $50 million per year

Minimal reporting requirements for SSOs - DOR not allowed to make data public

SSOs must obligate at least 90% of contributions for scholarships

(2011) GA HB 325

Amended the Qualified Education Expense Tax Credit law to:

Including a Consumer Price Index increase

Creating a sunset in 2018

Requiring greater transparency and accountability for SSOs

Maximum annual award limit created for individual students

(2013) GA HB 283

Amended the Qualified Education Expense Tax Credit law to:

Raising the available credits cap to $58 million

Requiring six week public school attendance for eligibility (second grade and above)

Reducing the admin fees which may be charged by SSOs

Requiring SSOs to award scholarships to specific students within one year

Requiring SSOs to consider financial needs of students based on all sources

Prohibiting SSO from awarding scholarships to any individual designated by donor

Prohibiting SSO from promising scholarship in exchange for contribution

Allowing for a tax credit for up to $10,000 for individuals with ownership in pass through entity

(2018) GA HB 217

Amended the Qualified Education Expense Tax Credit law to:

Raising the available credits cap to $100 million for the next 10 years

Reducing the admin fees which may be charged by SSOs

Providing clarity and improved the SSO scholarship reporting process

Requiring State auditors to evaluate the program in five years to determine its financial and economic impact to the State

(2022) GA HB 517

Amended the Qualified Education Expense Tax Credit law to:

Raising the available credits cap to $120 million

Removed the sunset (roll-back) on the credit cap

Increased taxpayer contribution limits to $2,500 for single filers, $5,000 for joint filers, and $25,000 for the owners of pass-through businesses

$6 million of the annual tax credit cap shall be available for use by insurance companies that pay insurance premium tax (rather than income tax)

Enhanced SSO transparency by including recommendations from the Georgia Department of Audits and Accounts