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Coming Soon to Georgia: Tax Credits to Support Youth-Serving Organizations

Two sister bills flying through the Georgia General Assembly this year would provide up to $20 million in annual tax credits allowing Georgia taxpayers to directly support nonprofits and educational agencies that provide services to youth aging out of foster care.

SB 370 -- the "Fostering Success Act" -- and HB 424 would both authorize individuals to take a tax credit of up to $2,500 ($5,000 for a couple filing jointly) for contributions to qualified organizations that support foster youth between the ages of 16 and 18 and former foster youth, possibly up to age 25, who aged out without permanency.  Qualified nonprofit organizations would be those operating or supporting either Georgia-licensed child placing agencies or organizations providing services to youth aging out of care.  Such services may include financial support for secondary education, mentorship services, and wraparound services such as housing, vocational education, medical care, counseling, transportation, and up to $150 per month in direct cash payments for these youth to use on personal necessities.  Contributions to the Technical College Foundation of Georgia and the University System to offset tuition costs for former foster youth will also be eligible for the credit.

The tax credits will be available beginning January 2023 and apply to both individual and corporate contributions.  The State will be required to set up a process for organizations to qualify to receive contributions under the program, and participating organizations will be responsible for reporting on both contributions and expenditures related to the tax credit program.

Presuming the bill passes as expected and is signed into law by Governor Kemp, the Division of Family and Children Services is expected to begin accepting applications for organizations interested in participating in the program this November.  

This program looks to be an incredible opportunity not only for youth aging out of foster care but also for those nonprofits and faith-based organizations that support those youth.  

If your organization is interested in participating in this new opportunity, Taylor English's Youth Services Law team is here to help navigate the process of becoming and remaining a qualified organization.

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youth services law, schools, insights, rawlings_tom