Georgia Private School Tax Credit: How the QEE Credit and GOAL Scholarships Work

Georgia's private school tax credit is popular enough that it sells out on day one. The Georgia Department of Revenue (DOR) reports that the full $120 million cap for 2026 had been preapproved as of January 3, 2026. If you want a Georgia credit for 2027, the time to apply is now, in late 2026.

There's a second opportunity too. Georgia opted in to the new federal scholarship tax credit, so from January 1, 2027 you can give to a Georgia SGO and claim up to $1,700 per taxpayer on your federal return. Done right, Georgia donors can claim both.

This is general information, not tax advice. Ask your tax professional about your situation.

How the Georgia Qualified Education Expense credit works

You give to a student scholarship organization (SSO). The SSO awards scholarships to students for private school tuition, and Georgia reduces your state income tax by 100% of what you gave, up to your limit. Georgia GOAL Scholarship Program, which calls itself the state's leading SSO, works with more than 230 private schools.

The catch is the statewide cap. Every donor must be preapproved, and requests are prorated when the total asked for exceeds the cap.

Who can claim it and how much

Georgia GOAL lists these limits for 2027 credits. Confirm your own limit with DOR or your SSO, since they depend on filing status and entity type:

The cap is growing. Gov. Brian Kemp signed House Bill 328 on May 11, 2026, raising the annual cap from $120 million to $150 million. Georgia GOAL says requests were approved for about 50% of the amount asked in recent years, and it expects about 70% for 2027. You only give, and only get credit for, the approved amount.

Pass-through owners have extra planning options, including Georgia's elective pass-through entity tax. Our guide to business tax credit scholarships compares business options across states.

Preapproval and deadlines

1. Apply early. Submit a preapproval request (Form IT-QEE-TP1) through the Georgia Tax Center, or let your SSO submit it for you. GOAL tells donors to apply before the end of 2026 for a 2027 credit.
2. Get your letter. DOR mails the preapproval letter, and you can also view it in the Georgia Tax Center. GOAL says approvals arrive in early January.
3. Give within 60 days. DOR says if you don't contribute within 60 days of preapproval, you must reapply. GOAL tells donors to expect a mid-March due date.
4. Claim electronically. Your SSO sends Form IT-QEE-SSO1. You claim the credit with Form IT-QEE-TP2 on an electronically filed Georgia return.

How Georgia's credit stacks with the federal $1,700 credit

The federal credit under Section 25F returns up to $1,700 per individual taxpayer, or $3,400 on a joint return when each spouse gives, for cash gifts to an SGO on an opted-in state's list. Gov. Kemp opted Georgia in on January 20, 2026, and Georgia is on the IRS list of states that made an advance election. See our Education Freedom Tax Credit guide for the full rules.

The law says the federal credit is reduced by any state credit claimed for the same qualified contribution. Treasury's proposed rules (October 2026) subtract the state credit from your qualified gifts first, then apply the $1,700 limit. That gives you two options:

Option 1: one gift for both credits (not recommended). A single $1,700 gift to an organization that is both an SSO and a federal SGO earns a $1,700 Georgia credit. Your federal credit is then $1,700 − $1,700 = $0.

Option 2: separate gifts (recommended). Give your QEE amount to the SSO for the Georgia credit. Make a separate gift, designated as a qualified contribution, to a listed SGO for the federal credit. The Georgia credit isn't for a qualified contribution, so it doesn't reduce the federal credit. GOAL is set up this way: Georgia GOAL for the state credit and American GOAL for the federal credit.

The proposed rules also include an ordering rule. If one gift is partly designated as qualified and partly not, the state credit is applied first to the part that isn't. Two separate gifts are still the easiest to document.

Worked example: a married couple in Atlanta

The 70% proration is GOAL's estimate, not a guarantee. The federal gifts are made in 2027 and claimed on the 2027 return filed in 2028. Unused federal credit carries forward up to five years.

How to give, step by step

1. Request your Georgia credit now. Apply through an SSO before the end of 2026 for the best chance at a 2027 allocation.
2. Pledge your federal gift. Tell us your amount on Edulist's donor page and we'll remind you when giving opens on January 1, 2027. You give directly to the SGO; Edulist never handles donations.
3. Check the IRS SGO list. Georgia must send its SGO list by February 15, 2027 under the proposed rules.
4. Give and designate. Pay your preapproved state amount within 60 days. Make your federal gift separately and tell the SGO it's a qualified contribution.
5. Keep both receipts. You'll get Form IT-QEE-SSO1 for the state credit and, by January 31, 2028, a federal acknowledgment with a unique donor number. Our guide to claiming the federal credit covers Form 8525.

Choosing an SSO or SGO

Georgia has many SSOs, including Georgia GOAL, Georgia Tax Credit Scholarship Program, SSO Inc and GREAT SSO. Compare organizations by the schools they partner with, how they pick scholarship recipients, what share of donations reaches students, and whether they publish audits. Our checklist for choosing a scholarship fund walks through it. Want to give outside Georgia? The tracker of states that opted in shows where else you can give.

Families can see Georgia's scholarship and education account programs on our Georgia scholarships page.