SB515: SB515 "Quality Basic Education Act"; grants for educational programs; provisions relative to the teacher recruitment and retention tax credit program; revise

Georgia currently caps its teacher recruitment and retention tax credit program (O.C.G.A. § 20-2-251) at 1,000 participating teachers a year, paying each a $3,000 annual tax credit for up to five years to work in hard-to-staff schools. This bill raises that cap to 1,200 teachers, but cuts the credit to $2,500 a year for anyone newly designated after December 31, 2026 (teachers already in the program keep the $3,000 rate). It also replaces the old rural-or-low-performing school eligibility rule with new criteria tied to school performance, such as turnaround-eligible schools and schools requiring federal intervention, and extends the deadline for new program applications from the end of 2026 to the end of 2031. A new cap limits total teacher tax credits to $3 million per fiscal year statewide, with pro rata cuts if demand exceeds that amount. The bill separately rewrites Georgia's tax credit for donating real property for conservation purposes (O.C.G.A. § 48-7-29.12), raising per-donation and per-taxpayer credit caps, shifting appraisal review duties from the State Properties Commission to the Department of Natural Resources, and extending the statewide $4 million annual credit cap through 2031. Most changes tied to the teacher program take effect January 1, 2027; the rest take effect once the Governor signs the bill.

• Raises the statewide cap on participating teachers in the teacher recruitment and retention tax credit program from 1,000 to 1,200 per year.
• Cuts the annual tax credit for newly designated participating teachers from $3,000 to $2,500 starting January 1, 2027, while protecting current participants' $3,000 rate.
• Replaces the old rural-territory or lowest-5-percent school eligibility test with new criteria based on school performance, including turnaround-eligible schools and CSI (comprehensive support and improvement) schools.
• Extends the deadline for new applications to the teacher tax credit program from December 31, 2026 to December 31, 2031.
• Caps total teacher tax credits statewide at $3 million per fiscal year, with pro rata reductions if applications exceed that amount.
• Rewrites the conservation land donation tax credit by raising per-donation and per-taxpayer caps, moving appraisal review from the State Properties Commission to the Department of Natural Resources, and extending the $4 million annual statewide cap through 2031.

Public school teachers, especially new hires in high-need subject areas at qualifying schools, and the Georgia Department of Education, which administers the program. Also affects landowners and taxpayers who donate real property for conservation, the Department of Natural Resources, and the State Properties Commission, whose review role is being repealed.

More teachers could qualify for the recruitment incentive, but those who join after 2026 would get a smaller annual tax break than earlier participants. Schools are selected using new performance-based criteria rather than rural location, which could shift which schools and teachers benefit. Conservation land donors could claim larger tax credits under the revised rules.

• Section 1 rewrites O.C.G.A. § 20-2-251, raising the teacher participation cap to 1,200 and setting the reduced $2,500 credit for teachers designated on or after January 1, 2027 while grandfathering existing participants at $3,000.
• Section 1 repeals the rural-territory/lowest-5-percent eligibility definition for qualifying schools and substitutes turnaround-eligible schools, lowest-25-percent performing schools, and CSI schools requiring federal intervention.
• Section 1 extends the program's application deadline from December 31, 2026 to December 31, 2031 and directs the department to prioritize rural and high-need subject area vacancies if applications exceed the cap.
• Section 2 revises the conservation easement tax credit (O.C.G.A. § 48-7-29.12), raising the per-donation cap ceiling from $500,000/25 percent to $1 million/50 percent of fair market value.
• Section 2 shifts appraisal certification and substantial valuation misstatement review from the State Properties Commission to the Department of Natural Resources and repeals related penalty and definition provisions.
• Section 2 extends the statewide $4 million annual cap on conservation donation tax credits through December 31, 2031 and raises per-taxpayer annual limits to $500,000 (individual) and $1 million (corporate).
• Section 3 amends O.C.G.A. § 48-7-29.23 to set the $2,500 or $3,000 teacher tax credit amounts and caps total teacher credits statewide at $3 million per fiscal year, reduced pro rata if oversubscribed.
• Section 4 makes Sections 1 and 3 (the teacher program changes) effective January 1, 2027, while the rest of the Act takes effect upon the Governor's signature.

1. 2026-03-31House Passed/Adopted By Substitute (House)
2. 2026-03-31House Third Readers (House)
3. 2026-03-25House Committee Favorably Reported (House)
4. 2026-03-10House Second Readers (House)
5. 2026-03-09House First Readers (House)
6. 2026-03-06Senate Passed/Adopted By Substitute (Senate)
7. 2026-03-06Senate Third Read (Senate)
8. 2026-03-06Senate Taken from Table (Senate)

• Billy Hickman (R, SD-004)Primary sponsor
• Chuck Payne (R, SD-054)
• Bo Hatchett (R, SD-050)
• Elena Parent (D, SD-044)
• Clint Dixon (R, SD-045)
• Carmen Rice (R, HD-139)

1. PassedSenate voteMarch 6, 2026

   32 yea, 22 nay (1 not voting, 0 absent)

   Motion To Engross: Sb 423, Sb 515, Sb 566, Sb 568, Sb 573, Sr 838: Senate Vote #640

2. PassedSenate voteMarch 6, 2026

   49 yea, 1 nay (2 not voting, 3 absent)

   Passage By Substitute: Senate Vote #670

3. PassedHouse voteMarch 31, 2026

   158 yea, 9 nay (2 not voting, 7 absent)

   Passage: House Vote #794

• teacher recruitment
• education funding
• tax credits
• school performance
• conservation land donations