HB 328: Revenue and taxation; increase annual aggregate limit for tax credits available for certain contributions to student scholarship organizations

In plain language

What the bill does

Who it affects

Why it matters

Key provisions

From the bill

Discussed in meetings (11)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

1. Senate Finance Committee, March 16, 2026

   From 0:40:07 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said the substitute for HB 328 would raise the scholarship-donation tax-credit cap from $120 million to $225 million, versus $140 million in the House version. The sponsor described waivers of the six-week public-school attendance requirement for active-duty military families and specified disabilities, removal of scholarship limits for certain disabilities, a ban on income from scholarship organizations for legislators and spouses, a 6% insurance-premium allocation, and a PEACH credit increase from $15 million to $25 million. The sponsor argued the program saved money, citing average scholarships of $4,700 versus $6,300 in state school funding. The chair questioned savings and accountability; another member questioned the expansion’s effect on other education priorities. A Cristo Rey Atlanta witness said credits supplied 30% of the school’s budget. Georgia GOAL said its administrative fee was 4%, below the allowed 8%. Both witnesses opposed expiration because of long-term scholarship commitments; Frontline Policy supported expansion. Members debated whether expiration in 2032 would disrupt families or provide necessary financial review. One member also questioned private schools’ capacity to serve varied disabilities. The amendment removing expiration failed, 5–6. The committee approved the substitute with expiration, 8–3.

2. Senate Rules Committee, March 20, 2026

   From 0:07:27 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The presenter said the substitute would remove the expiration date from the student scholarship organization tax credit program. A committee member said the credit limit had increased from 120 to 225, without specifying units, and that the Finance Committee had added an expiration date. That member said supporters argued this credit should not expire. The committee approved the substitute by a show-of-hands vote of 7 to 5.

3. Senate Rules Committee, March 23, 2026

   From 0:06:20 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said HB 328 would raise the scholarship tax credit limit to $220 million, allowing another 20,000 students to participate. The sponsor said military families and students with 504 plans could bypass a six-week public school attendance requirement, and students with those plans could receive scholarships above the current $15,000 cap. No questions were asked. The committee later included the bill in the floor calendar package approved unanimously.

4. Senate Rules Committee, March 25, 2026

   From 0:43:47 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: A committee member initially selected HB 328, but the chair asked the member to choose again. No explanation of the bill or the reason for replacing the selection was given. It was not included in the final calendar package.

5. Senate floor session, March 25, 2026 (legislative day 37)

   From 2:39:51 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)

   Summary by Georgia Commons: The Senate first voted 32 to 19 to prevent floor amendments to HB 328 and three other bills. The sponsor said the substitute would raise the scholarship donation tax credit cap to $225 million and the public school donation credit cap to $25 million next year. The sponsor also described easier scholarship eligibility for military families and students with disabilities, removal of the individual award cap for designated disabilities, electronic endorsements and a ban on legislators or spouses receiving scholarship organization income. The sponsor cited approximately $4,800 average scholarships, demand exceeding available credits and a state report estimating $56.5 million in annual taxpayer savings. One opposing senator questioned financial oversight and described a Department of Revenue response reporting one investigation that found fraud. Other opponents argued the expansion would reduce resources available for public schools and lacked academic accountability. Another opponent said tuition of $9,000 to $12,000 left an unaffordable gap. A supporting senator said scholarships helped working families bridge that gap and pointed to public school funding and new literacy spending. The sponsor said scholarships could not be combined with certain other state scholarships. The Senate adopted the substitute and passed it 30 to 20.

6. House floor session, March 31, 2026 (legislative day 39, part 3)

   From 1:50:27 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Agreed Senate Amend or Sub As Amended)

   Summary by Georgia Commons: The sponsor presented a House amendment covering education tax credits, school provisions, and transit votes. The sponsor said it includes provisions concerning individualized education programs and military students, preserves an arrangement for some virtual schools, reduces the Senate’s proposed student scholarship organization credit cap from $220 million to $150 million, and sets the PEACH school tax credit at $25 million. The sponsor also said certain failed local transit proposals could not return for another vote for eight years. One member questioned the 25% increase in the private-school scholarship credit. Another member said scholarship provisions benefit students with special needs and that PEACH credits benefit public-school students. Several members objected to the transit waiting period, citing traffic, changing local needs, limits on future votes, and restrictions applying only to selected metro counties. Another member said the provisions concern transit referendums rather than MARTA taxes and apply only to a limited number of counties. The House adopted the amendment without objection and agreed to the Senate substitute as amended, 99 to 67.

7. Senate floor session, April 2, 2026 (legislative day 40, part 2)

   From 4:08:32 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Agreed House Amend or Sub)

   Summary by Georgia Commons: The presenter described HB 328 as combining scholarship eligibility changes for military students and students with disabilities, scholarship-account provisions, virtual-school rules and reduced transit fares. The presenter said the scholarship tax-credit cap would rise from $110 million to $150 million, rather than the $225 million previously approved by the Senate. The clerk also read a ban on legislators and spouses receiving income from student scholarship organizations. One member reluctantly supported the package but said about 1,500 virtual-school students would have only three months to find another school. A second member opposed it, arguing the virtual program deserved more time to improve and that unrelated subjects should not be combined. Another opponent supported restricting the virtual program, saying its performance scores were 34 overall and 28 for high school, but objected to the combined package. A member challenged whether the provisions belonged together. The chair ruled they did, and that ruling was sustained, 30–22. The Senate then agreed to the House amendment, also 30–22.

8. Senate floor session, April 2, 2026 (legislative day 40, part 1)

   From 7:37:01 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: A senator moved to accept the House amendment to the Senate substitute for HB 328. The clerk's readings described scholarship-organization tax credits, student eligibility and maximum awards, military students and students with disabilities. The Senate substitute's caption also mentioned restricting income that legislators and spouses could receive from scholarship organizations. Before a substantive presentation, another senator asked the chair to rule whether the House amendment complied with the rule requiring related subject matter, arguing that it contained multiple subjects. After a pause, the senator making the agreement motion withdrew it, and the questioning senator withdrew the request for a ruling. No vote or ruling on the House amendment was recorded.

• Read aloud: Senate floor session, March 18, 2026 (legislative day 33), 0:30:06
• Read aloud: Senate floor session, March 20, 2026 (legislative day 35), 0:36:49
• Read aloud: Senate floor session, March 23, 2026 (legislative day 36), 0:32:31

Status timeline

Sponsors

Votes

Topics