ATLANTA – Representative Earl Ehrhart (R-Powder Springs) announced today that he has introduced legislation allowing those who donate to certain education funds to receive a tax credit. 

“An education tax credit will offer more opportunities to low income families and empower parents,” said Ehrhart.  “This program will benefit both private and public schools, and I am excited about all of the children who will be better off because of it.”

Ehrhart’s bill creates two new 501c3 designations, the Student Scholarship Organization (SSO) and the Educational Improvement Organization (EIO).  A group wishing to apply for an SSO or EIO status must submit a request to a nine-member board appointed by the governor, lieutenant governor, and speaker of the house.

With the funds raised, SSO organizations may give a private school scholarship to any individual student who is a Georgia resident and whose total household income is less than 200 percent of the federal poverty guidelines, similar to the proposed guidelines for PeachCare.  The student remains eligible as long as the family income does not exceed 300 percent of the federal poverty level.

An SSO may also offer scholarships to any Georgia student who suffers from a disability such as autism, blindness, or an emotional disorder. 

An individual contributing to an SSO and filing as a single head of household may claim up to $500 tax credit per year, and an individual filing as a married couple may claim up to $1000.

EIO organizations may give grant money to public schools for innovative programs such as extracurricular activities, music and art instruction, foreign languages, or even pre-kindergarten programs. 

An individual contributing to an EIO and filing as a single head of household may claim up to $250 tax credit per year, and an individual filing as a married couple may claim up to $500.

Corporations may donate to both an SSO and/or an EIO with the only limit being that they will not receive a tax credit for more than 75 percent of their tax burden. The amount donated above that may be carried over to another tax year for up to five years.

“This program has already been implemented in other states, and I look forward to its passage as we continue to move Georgia into the 21st century,” said Ehrhart.

Representatives Martin Scott (R-Rossville), David Casas (R-Lilburn) and Tom Graves (R-Ranger) are co-sponsors of the bill.

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