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C-Corporation Taxpayers

 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.