Georgians will soon have another way to support private school students—and receive the money back through tax credits—after Gov. Brian Kemp opted Georgia into a new federal scholarship tax credit program tied to the “One Big Beautiful Bill Act.”

Under the federal program, taxpayers can receive up to $1,700 in federal tax credits for contributions to approved K–12 scholarship-granting organizations. Kemp announced at the state Capitol that he signed the required IRS form to opt Georgia into the program, joking it was the happiest he had ever been signing an IRS document.

Supporters said the move expands “school choice” by encouraging more private donations to scholarship organizations, while critics argue programs like this can divert resources away from public education.

Eligibility for scholarships under the federal program is limited to families earning under 300% of an area median income, a threshold that can vary by region.

The new federal credit is expected to complement Georgia’s existing state tax credit scholarship program, the Georgia Qualified Education Expense Tax Credit, which allows individuals to receive up to $2,500 in state tax credits for donations to approved student scholarship organizations, with married couples eligible for up to $5,000. Companies can contribute more and receive the money back in credits as well. The total state credits are capped at $100 million per year, and state auditors recently reported the credits cost Georgia $88.8 million in fiscal year 2025.

The federal tax credit is part of a broader landscape of government-backed support for private school attendance in Georgia, including the Georgia Promise Scholarship program created in 2024. State officials have reported participation was below early expectations, and Gov. Kemp has proposed returning a large portion of the program’s budget allocation to the general fund due to lower demand.