Georgia Corporate Donations

Georgia Corporate Donations

Under the Georgia Tax Credit Scholarship Program, any company or individual that pays Georgia income tax may receive a dollar-for-dollar tax credit for approved donations to ASK. A C-corporation may redirect up to 75% of its entire Georgia income tax liability, and individual owners of S-corporations, LLCs, and partnerships may redirect up to $10,000 annually in exchange for a 100% tax credit.

The Qualified Education Expense Credit Cap for Calendar Year 2018 is $58,000,000.00 All applications received on January 1, 2018 will be prorated down to the $58,000,000.00. Thank you for your interest in the Qualified Education Expense Credit program. You may begin submitting applications for the 2018 tax year on January 1, 2018.

An individual taxpayer who is a member of a limited liability company duly formed under state law (including a member who owns a single member limited liability company that is disregarded for income tax purposes), a shareholder of a Subchapter ‘S’ corporation, or a partner in a partnership, the credit is limited to the lesser of the actual amount expended or $10,000 per tax year, whichever is less; provided, however, that the tax credits shall only be allowed for the Georgia income on which such tax was actually paid by such member of a limited liability company, shareholder of a Subchapter ‘S’ corporation, or partner in a partnership. If the individual taxpayer is a member, partner, or shareholder in more than one pass through entity, the total credit allowed cannot exceed $10,000; the individual taxpayer decides which pass through entities to include when computing Georgia income.

A corporation or fiduciary is allowed a credit for qualified education expenses in an amount not to exceed the lesser of the actual amount expended or 75% of the corporation’s or fiduciary’s income tax liability for the tax year, of the corporation or fiduciary, in which the contribution will be made. Any of this lesser amount (amount expended or 75% of the corporation’s or fiduciary’s income tax liability) that is not used can be used against the succeeding five years’ tax liability. A fiduciary cannot pass through the credit to its beneficiaries.