---
title: HB 1135. Education; participate in federal tax credit program for contributions of individuals to scholarship granting organizations; provide
collection: bills
id: 2025-2026/hb1135
cite_as: HB 1135, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1135
md_url: https://georgiacommons.org/bills/2025-2026/hb1135.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1135/text
source_url: https://www.legis.ga.gov/legislation/72689
date: 2026-03-03
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 199
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1135.md?full=1
bill_number: HB 1135
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-02
last_action: House Committee Favorably Reported By Substitute
sponsors:
  - Scott Hilton
  - Jan Jones
  - Chuck Efstration
  - Charles Cannon
  - Rick Townsend
  - Houston Gaines
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1135/2025
upstream_id: 2104423
summaries_model: claude-sonnet-5
topic_tags:
  - education tax credits
  - scholarship organizations
  - school choice
  - state tax policy
  - Department of Revenue
---

# HB 1135. Education; participate in federal tax credit program for contributions of individuals to scholarship granting organizations; provide

## Text

The House Committee on Ways & Means offers the following substitute to HB 1135:
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 2A of Title 20 of the Official Code of Georgia Annotated, relating to
student scholarship organizations, so as to provide for the State of Georgia to participate in
the federal tax credit for contributions of individuals to scholarship granting organizations;
to designate the state revenue commissioner to make elections on behalf of the State of
Georgia with respect to federal tax benefits related to contributions of individuals to
scholarship granting organizations; to require the state revenue commissioner to provide
notice to the secretary of the treasury of the United States that the State of Georgia elects to
participate in such federal tax credit and to include in such notice a list of qualifying
scholarship granting organizations; to restrict state agencies from promulgating rules or
regulations; to make conforming changes; to amend Code Section 48-7-29.16 of the Official
Code of Georgia Annotated, relating to tax credits for contributions to student scholarship
organizations, so as to make a conforming change; to provide for legislative intent; to
provide for related matters; to provide for an effective date and applicability; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
It is the intent of the General Assembly that the State of Georgia participate in the federal tax
credit established in Section 70411 of federal Pub. Law. No. 119-21.
SECTION 2.
Chapter 2A of Title 20 of the Official Code of Georgia Annotated, relating to student
scholarship organizations, is amended by replacing "chapter" with "article" wherever the
former term appears in:
(1) Code Section 20-2A-1, relating to definitions;
(2) Code Section 20-2A-2, relating to requirements for student scholarship organizations;
(3) Code Section 20-2A-2.1, relating to entities prohibited from being student scholarship
organizations; and
(4) Code Section 20-2A-7, relating to penalties for failure to comply with requirements of
chapter and violations.
SECTION 3.
Said chapter is further amended by designating Code Sections 20-2A-1 through 20-2A-7 as
Article 1 and by adding a new article to read as follows:
<ins>"ARTICLE 2
20-2A-20.
Reserved.
</ins>
<ins>20-2A-21.
(a) 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.
(b) The state revenue commissioner shall comply with any requirements under
Section 70411 of federal Pub. Law No. 119-21 and any applicable federal statutes,
regulations, or guidance in effect on December 31, 2026, including, but not limited to, 26
U.S.C. Section 25F, to ensure that the state is eligible to participate in such federal tax
credit in taxable years beginning after December 31, 2026.
(c) The state revenue commissioner shall:
(1) Annually, on or before the date set by the secretary of the treasury of the United
States, provide official notice to the secretary opting into the federal tax credit for
contributions of individuals to scholarship granting organizations that meet the
requirements of such federal tax credit. In a manner prescribed by the secretary of the
treasury of the United States Department of Revenue, the commissioner shall provide
certification of his or her authority to submit such notice. Such notice shall include a list
of the scholarship granting organizations located in this state that meet the requirements
for a scholarship granting organization under such federal tax credit. Such list shall
immediately be published on the website of the Department of Revenue; and
(2) Accept applications from scholarship granting organizations throughout the year for
inclusion on the list submitted to the secretary of the treasury of the United States as
provided for in paragraph (1) of this subsection.
(d) 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."
</ins>
SECTION 4.
Code Section 48-7-29.16 of the Official Code of Georgia Annotated, relating to tax credits
for contributions to student scholarship organizations, is amended by revising paragraph (3)
of subsection (a) as follows:
"(3) 'Qualified education expense' means the expenditure of funds by the taxpayer or
business enterprise during the tax year for which a credit under this Code section is
claimed and allowed to a student scholarship organization operating pursuant to <ins>Article 1
of</ins> Chapter 2A of Title 20 which are used for tuition and fees for a qualified school or
program."
SECTION 5.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval and shall apply to all taxable years beginning on or after January 1,
2027.
SECTION 6.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

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.

### Plain-language summary

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 it 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.

## Status

- Status: Introduced (2026-02-02)
- Last action: House Committee Favorably Reported By Substitute (2026-03-03)
- Sponsors: Scott Hilton, Jan Jones, Chuck Efstration, Charles Cannon, Rick Townsend, Houston Gaines
- Official page: https://www.legis.ga.gov/legislation/72689

> The history, votes, and amendments (199 characters) are at https://georgiacommons.org/bills/2025-2026/hb1135.md?full=1