Georgia has tax credit programs in place for Georgia residents to re-direct their tax dollars to programs of their choice. Tax credits give you a “dollar for dollar” benefit which means a $1 tax credit is equivalent to paying $1 in Georgia taxes. Review our tax credit guide about the top Georgia tax credits for individuals and businesses alike.
If you are interested in applying for a credit, act fast, as they are expected to reach their cap for 2024. You can pre-apply for some tax credits now for the 2025 tax year.
Georgia Qualified Education Expense Credit
This credit was established to support qualified student scholarship organizations which provide scholarships to needy students to attend private K-12 schools.
The annual credit cap is $120 million. Taxpayers must apply for the tax credit to qualify and can do so through the Georgia Tax Center or qualified student scholarship organization directly. Once approved, the donation must be made to the organization within 60 days.
The annual contribution limits are:
- $2,500 for single taxpayers
- $5,000 for married couples, filing a joint return
- $25,000 for individuals who receive income as owners of a pass-through entity such as a Partnership or S-corporation
- C-Corporations and fiduciary taxpayers can claim a tax credit for up to 75% of their income tax liability
- Pass-through entities that make the “Pass-Through Entity” tax election can also claim a tax credit for up to 75% of their income tax liability
Some popular Scholarship Organizations include:
The 2023 cap has been met as of January 5, 2023 for the Qualified Education Tax Credit.
Georgia Rural Hospital Credit
The Georgia Rural Hospital credit was established to support rural hospital organizations which provide support to rural hospitals. Rural hospitals are determined by county population size, tax-exempt status or public hospital authority management and other criteria.
The 2024 annual credit cap is $75 million and beginning January 1, 2025 the annual credit cap is increased to $100 million. Taxpayers must apply for the tax credit to qualify and can do so through the Georgia Tax Center or the Rural Hospital Organization directly. Once approved, the donation must be made to the organization within 180 days and before the end of the calendar year.
From January 1st to June 30th of each year, the following limits apply:
- $5,000 for single taxpayers or married couples filing separately
- $10,000 for married couples, filing a joint return
- $10,000 for individuals who receive income as owners of a pass-through entity such as a Partnership or S-corporation
- C-Corporations and fiduciary taxpayers can claim a tax credit for up to 75% of their income tax liability
- Pass-through entities that make the “Pass-Through Entity” tax election can also claim a tax credit for up to 75% of their income tax liability
After June 30th of each year, individual taxpayers may make unlimited contributions to RHOs for a corresponding 100% Georgia income tax credit, to the extent the credit cap has not been met.
As of 1/1/2023, all 55 participating hospitals use the following Rural Hospital Organization:
Georgia Law Enforcement Donation Credit
The Georgia Law Enforcement Donation credit is new for 2023 and was established to support qualified law enforcement foundations. A qualified law enforcement foundation is designated as the sole local law enforcement foundation for a single local law enforcement unit and has been certified as such by the Commissioner.
The annual credit cap is $75 million. Taxpayers must apply for the tax credit to qualify and can do so through the Georgia Tax Center directly. Once approved, the donation must be made to the organization within 60 days.
The annual contribution limits are:
- $5,000 for single taxpayers or married couples filing separately
- $10,000 for married couples, filing a joint return
- $10,000 for individuals who receive income as owners of a pass-through entity such as a Partnership or S-corporation
- C-Corporations and fiduciary taxpayers can claim a tax credit for up to 75% of their income tax liability
- Pass-through entities that make the “Pass-Through Entity” tax election can also claim a tax credit for up to 75% of their income tax liability
You can learn more about how to apply for the credit through the Georgia Tax Center and applicable organizations at the link below:
Georgia PEACH Education Credit
The Georgia PEACH Education tax credit was established to advance public education and foster excellence for students across Georgia. Donated funds are directed toward innovation in Georgia public schools, with a priority on the lowest performing 5% of schools.
The annual credit cap has been increased to $15 million for the 2024 tax year and moving forward. Taxpayers must apply for the tax credit to qualify and can do so through the Georgia Foundation for Public Education or through the Georgia Tax Center directly. Once approved, the donation must be made to the organization within 60 days.
The annual contribution limits are:
- $1,000 for single taxpayers
- $1,250 for married couples, filing separately
- $2,500 for married couples, filing a joint return
- $10,000 for individuals who receive income as owners of a pass-through entity such as a Partnership or S-corporation
- C-Corporations and fiduciary taxpayers can claim a tax credit for up to 75% of their income tax liability
- Pass-through entities that make the “Pass-Through Entity” tax election can also claim a tax credit for up to 75% of their income tax liability
You can apply for the credit using the link below:
Georgia Child and Dependent Care Credit
This state-specific credit relates to the federal child and dependent tax credit, supporting 30% of the credit claimed that meets these standards. Make sure you understand who counts as a dependent as well as what will qualify as a related expense. Federally, the credit is limited to $3,000 for one dependent and $6,000 for two or more.
Learn more about claiming this credit federally below:
Georgia Qualified Foster Child Donation Credit
The Georgia Qualified Foster Child Donation credit was established to support qualified foster child support organizations. Foster organizations must be certified by the Division of Family and Children Services to qualify.
The annual credit cap is $20 million. Taxpayers must apply for the tax credit to qualify through the Georgia Tax Center directly. Once approved, the donation must be made to the organization within 60 days.
The annual contribution limits are:
- $2,500 for single taxpayers
- $2,500 for married couples, filing separately
- $5,000 for married couples, filing a joint return
- $5,000 for individuals who receive income as owners of a pass-through entity such as a Partnership or S-corporation
- C-Corporations and fiduciary taxpayers can claim a tax credit for up to 10% of their income tax liability
- Pass-through entities that make the “Pass-Through Entity” tax election can also claim a tax credit for up to 10% of their income tax liability
You can apply for the credit using the link below:
Georgia Caregiving Expense Credit
A qualified caregiving expense credit equal to 10 percent of the cost of qualified caregiving expenses for a qualifying family member. The credit cannot exceed $150. Qualified services include home health agency services, personal care services, personal care attendant services, homemaker services, adult day care, respite care, or health care equipment and other supplies which have been determined by a physician to be medically necessary.
Services must be obtained from an organization or individual not related to the taxpayer or the qualifying family member. The qualifying family member must be at least age 62 or been determined disabled by the Social Security Administration. The credit is claimed on the Georgia Form 500 tax return.
If you’ve recently moved to Atlanta from another city, or are currently switching back and forth between your home state and Georgia, you may be interested in our guide to filing taxes while living in multiple states.
These Georgia tax credits are an excellent tool for Georgia taxpayers to support programs of their choice and receive a tax credit in return. If you have questions about how this topic will impact you, Team LittleOwl CPA is here to help. Schedule a discovery call today!
