GA Private School Tax Credit

Thank you for visiting the Georgia Private School Tax Credit information page at Heritage Preparatory School. Below you will find information and resources to better explain the tax credit and your options for donating. Click the links below to download the necessary forms. 

Note: All forms must be submitted by December 31 to ensure your tax credit for 2010.

What is the private school tax credit?

The Georgia Private School Tax Credit was passed into law in the summer of 2008, HB 1133. Heritage Preparatory School is excited about the law as it has financial benefits for both you and private school education throughout Georgia. The state has set aside $50 million in credits available each year, distributed on a first-come, first-served basis.

How can this tax credit benefit my family and Heritage?

Under this law, you will receive a dollar-for dollar Georgia income tax credit for donating funds to a Student Scholarship Organization (SSO) that will be used for tuition assistance to qualifying students.  For married couples filing a joint return, the maximum tax credit contribution is $2,500 ($1,000 as an individual filer).  Our belief is that through this program Heritage will be able to increase our student body through providing tuition assistance where most appropriate.

Who will be eligible for tuition assistance through this program?

A Georgia resident student enrolled in public school seeking to transfer to Heritage or any student seeking to enroll in the Heritage Enrichment Program (our school's kindergarten and pre-kindergarten programs).  Once a student receives tuition assistance through this program, the student is eligible to apply for continued assistance the following academic year.  Tuition assistance amounts granted to a student may vary from year to year based on availability of funds and financial needs of the applicant. Tuition assistance application process and funding determinations are administered solely by Heritage.

How does the tax credit work?

We have partnered with Apogee Georgia School Choice Scholarship Fund, a state approved Student Scholarship Organization (SSO), to administer the process and funds to enable the Heritage community to take advantage of this program. With a donation to the Apogee Georgia School Choice Scholarship Fund, a dollar-for-dollar Georgia state income tax credit is available to you. Your donation also means you are allowed an itemized charitable contribution deduction on your federal tax return. 

What if I am subject to Federal Alternative Minimum Tax (AMT)?

This program can be an added "bonus" benefit to you, by using this tax credit program you are converting a state income tax deduction (which is added back and subject to AMT tax) to a charitable donation (which is exempt from AMT).  As such you can "profit" up to 29% on the amount donated.   This will lower your AMT liability and reduce your overall federal tax by as much as:

        $1,000 donation = $1,000 GA tax credit + $290 federal AMT savings

        $2,500 donation = $2,500 GA tax credit + $725 federal AMT savings

Can Corporations receive tax credits?

Yes, state income tax credits up to 75% of the corporation's income tax liability are available to qualifying corporations. An option to have the scholarship named in the corporation's name is also available.   Contact Heritage for more information.

Can my Employer make a matching gift?

Yes, if your employer offers a charitable gift matching program your donation to the fund is eligible for a matching gift because Apogee Georgia School Choice Scholarship Fund is a qualified 501(c)(3) charitable organization. Please forward your companies matching gift program forms to Apogee and they will secure the matching gift on your behalf.

Is it simple to claim my tax credit?

Yes, Apogee will send a package early in 2011 that will include the necessary form and instructions on how to file your tax credit. You will still be able to eFile your tax returns and claim your credit if you participate in the program.

How do I make application for my Tax Credit before the deadline?

It only takes five minutes, but you must apply before December 31, 2010 to benefit:

Step 1: Print and complete two forms: Form IT-QEE-TP1. (GA Dept. of Revenue form. You must sign page 2, but Apogee will complete this form if you check the appropriate box on the below Apogee form, our recommendation).  Apogee SSO Form   Step 2: Mail, fax or email completed forms to: Mr. John Panessa Director of Operations Apogee Georgia School Choice Scholarship Fund 3300 Cumberland Blvd, Suite 400 Atlanta, GA 30339 404-419-7123 (Direct) 404.419.7101 (Fax) Email: Once your tax credit application has been approved by the state, you will have thirty (30) days to send funds to Apogee to complete the process.  Apogee will contact you directly when your application has been approved by the state (please check the appropriate box on the above Apogee form so the state will contact Apogee directly, our recommendation). What if I have more questions? See our FAQ page for more detailed information. (attached link to FAQ here) Further assistance can be found by contacting Susan Perkins, Business Manager (404.815.7711) at Heritage Preparatory School or John Panessa, Director of Operations (404.419.7123) at Apogee. To learn more about the Apogee Georgia School Choice Scholarship Fund please visit www.apogeescholarships.org.

See our FAQ page for more detailed information.