ATLANTA, Ga. — A new federal tax break for donations to scholarship groups kicks in on Jan. 1, and public school districts across Georgia are trying to figure out whether it will bring them new money or pull dollars away.
The program, created under the federal tax and spending law passed last year, lets individual taxpayers claim a nonrefundable credit of up to $1,700 for cash gifts to approved scholarship granting organizations. Married couples filing jointly can each claim the credit, for a combined $3,400.
The scholarships can pay for more than private school tuition. Families can also use them for tutoring, special education services and other educational costs, which is why some public school systems see a possible new source of support for their own students.
There is no cap on total donations nationwide. Federal Treasury and IRS estimates suggest the credit could generate $26 billion a year by 2030, potentially making it one of the largest pools of federal money available to K-12 students. For cash-strapped districts, the credit could turn out to be a fresh revenue stream or a drain on their budgets, depending on how families and donors use it.
Georgia is in. Gov. Brian Kemp opted the state into the program on Jan. 20, 2026, building on the state’s existing private school tax credit, known as the Georgia GOAL Scholarship Program. Each participating state must provide a list of approved scholarship organizations, and taxpayers only get the credit for gifts to a group that appears on a state list at the time of the donation.
Taxpayers do not have to live in the state whose list includes the organization. That means Georgia scholarship groups could draw donations from across the country, and Georgians could give to approved groups elsewhere.
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