Divert up to 75% of your GA tax liability
Establish a convenient and consistent mechanism and incentive for your business to contribute directly to educating Georgia’s children
Targets educational expenditures directly to families and children in local communities rather than institutions that may reduce the amount of resources going directly to students
Provides a cost effective method of maintaining philanthropic goals in a much more tax beneficial manner.
In general, businesses are rewarded by owners, shareholders, equity analysts and financial institutions for minimizing the percentage of income going to taxes because a lower tax burden is associated with sound financial management (even though contributions to Georgia tax credit scholarships would be equivalent to the amount being paid in taxes)
Under the new IRS adopted ruling, C Corporations are now able to claim the amount expended on the tax credit as a Business Expense instead of a charitable deduction as in previous years
Two favorable scenarios result from this change:
• C Corporations no longer have to add the amount of the credit back to income for state tax purposes as that add-back rule only applies to charitable deductions – this results in a positive tax benefit on the State return in the amount of 5.75%
• By treating the contribution as a business expense, a C Corporation will not be subject to the federal limitations on charitable contribution deductions, which generally cap deductions at 10% of income.
3330 Cumberland Blvd,
Suite 400
Atlanta, GA 30339
(404) 419-7123/27
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