Georgia CommonsHB 1135: Education; participate in federal tax credit program for contributions of individuals to scholarship granting organizations; provide
Last action March 3, 2026 · House Committee Favorably Reported By Substitute
HB 1135 would have Georgia opt into a new federal tax credit for individuals who donate to scholarship granting organizations, with the state revenue commissioner handling the federal paperwork and eligibility list.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest LegiScan holds.
In plain language
Congress created a federal tax credit for individuals who contribute to scholarship granting organizations, but states have to formally opt in and certify which organizations qualify. HB 1135 directs Georgia to participate. It designates the state revenue commissioner as the official who notifies the U.S. Secretary of the Treasury each year that Georgia is opting in, and requires that notice to include a list of qualifying scholarship granting organizations located in Georgia. The bill reorganizes Georgia's existing student scholarship organization law (O.C.G.A. Chapter 2A of Title 20) into two articles: the current rules become Article 1, and a new Article 2 sets up the state's role in the federal program. It also bars any state agency from writing rules that go beyond or conflict with federal guidance on this credit, and makes a small conforming edit to the existing state tax credit law. The changes would take effect once signed by the Governor and apply to tax years beginning on or after January 1, 2027.
What the bill does
- Directs the state revenue commissioner to make Georgia's official election to participate in the federal tax credit for individual donations to scholarship granting organizations under federal Pub. L. No. 119-21, Section 70411.
- Requires the commissioner to annually notify the U.S. Secretary of the Treasury of Georgia's participation and to include a list of qualifying in-state scholarship granting organizations.
- Requires that list of qualifying organizations to be published immediately on the Georgia Department of Revenue's website.
- Requires the commissioner to accept applications year-round from scholarship granting organizations seeking to be added to that list.
- Prohibits any Georgia state agency from adopting rules that expand, limit, or conflict with federal law or guidance on this tax credit.
- Reorganizes the existing student scholarship organization statute into Article 1 (current rules) and Article 2 (the new federal participation provisions), and makes a matching edit to the state's own scholarship tax credit law (O.C.G.A. § 48-7-29.16).
Who it affects
Individuals who donate to scholarship granting organizations and could claim the new federal tax credit, scholarship granting organizations operating in Georgia that seek certification, the state revenue commissioner and Department of Revenue, and other state agencies now barred from writing conflicting rules on this credit.
Why it matters
If Georgia does not formally opt in, its residents could not claim this federal tax benefit for donations to these scholarship organizations. The bill sets up the administrative machinery, an annual federal notice and a public list of qualifying organizations, needed for Georgians to actually use the credit starting in tax year 2027.
Key provisions
- Section 1 states legislative intent for Georgia to participate in the federal tax credit created by Section 70411 of federal Pub. L. No. 119-21.
- Section 2 makes conforming word changes ('chapter' to 'article') throughout existing Code Sections 20-2A-1 through 20-2A-7.
- Section 3 designates those existing sections as Article 1 and adds new Article 2 (Code Sections 20-2A-20 and 20-2A-21) creating the state's federal participation process.
- New Code Section 20-2A-21(b) requires the commissioner to comply with federal requirements, including 26 U.S.C. Section 25F, so Georgia is eligible starting in tax years after December 31, 2026.
- New Code Section 20-2A-21(c) requires an annual notice to the U.S. Treasury with a published list of qualifying scholarship granting organizations and year-round applications from organizations.
- New Code Section 20-2A-21(d) bars any state agency from adopting rules that expand, limit, or diverge from federal law or guidance on this credit.
- Section 4 amends O.C.G.A. § 48-7-29.16 to reference 'Article 1 of' Chapter 2A of Title 20 for the existing state scholarship tax credit definition.
- Section 5 sets the effective date as upon the Governor's approval (or becoming law without it), applying to tax years beginning on or after January 1, 2027.
From the bill
“The state revenue commissioner is designated to make elections on behalf of the State of Georgia with respect to the federal tax credit established in Section 70411 of federal Pub. Law. No. 119-21, as provided for in this article.”
“No department, agency, board, commission, or authority of this state has authority to adopt or promulgate any rule or regulation that expands, interprets, limits, or is otherwise not aligned with federal law, regulations, and guidance relative to the federal tax credits provided for in this Code section.”
Status timeline
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Scott Hilton (R, HD-048)
- Jan Jones (R, HD-047)
- Chuck Efstration (R, HD-104)
- Charles Cannon (R, HD-172)
- Rick Townsend (R, HD-179)
- Houston Gaines (R, HD-120)
Topics
- education tax credits
- scholarship organizations
- school choice
- state tax policy
- Department of Revenue