The $58 million in tax credits the state allocated for its private school scholarship program for 2015 were gone on New Year’s Day.
That gives supporters fresh ammunition in their push to increase spending on the program during the upcoming General Assembly session, which starts Jan. 12.
The program allows donors to student scholarship organizations to claim a state tax credit of up to $2,500 for married couples. Corporate donors can claim a credit worth up to 75 percent of their income tax liability. Statewide the limit is $58 million worth of income tax credits for donating to scholarship organizations.
Those organizations then hand out scholarships to students to attend private schools. The organizations and schools promote the tax credit program and urge parents to donate. It was so popular last year that the $58 million tax credit cap was met in a few weeks and advocates pushed unsuccessfully for it to be raised to $100 million.
Because the money went so fast last year, some major scholarship organizations urged donors to submit their applications by the end of 2014.
With strong support in the Republican-led General Assembly and an improving state budget picture, backers will make a major push to increase the limit for 2016.
The program has both passionate supporters and equally passionate critics. Backers say it is an important step toward giving parents greater choice in where their children attend school. Opponents say it provides a boost to private, often religion-affiliated schools while draining money from the public education system.
A group backed by the Southern Education Foundation sued the state over the program last year, saying the student scholarship tax credits violate both the Georgia constitution and tax laws by, among other things, providing indirect public funding to religious schools, giving donors illegal benefits and allowing a school program to be run by private groups.
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