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HB 565

Income tax; increase annual aggregate limit for tax credits available for qualified education donations

2025-2026 Regular Session Introduced by Beth Camp and 4 co-sponsors

House Bill 565 raises the annual tax credit limit for donations to nonprofits supporting public schools to $25 million, boosting funding for education initiatives in Georgia.

House Second Readers
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WeVote Research Nonpartisan
Bill Summary · HB 565

Summary of House Bill 565

Bill Number: HB 565
Title: Income tax; increase annual aggregate limit for tax credits available for qualified education donations
Status: House Second Readers
Introduced: February 20, 2025
Classification: Bill

Purpose and Intent

House Bill 565 aims to amend the existing tax code in Georgia to increase the annual aggregate limit on tax credits available for donations made to nonprofit organizations that provide grants to public schools. The intent is to encourage more charitable contributions to educational initiatives by enhancing the financial incentives for donors.

Key Provisions

  • Increase in Tax Credit Limit:
    The bill proposes to revise the current limit on tax credits for qualified education donations as follows:

    • $25 million per calendar year as the new aggregate limit.
    • Specifically, it sets the following limits for the upcoming tax years:
    • $5 million for the tax year ending December 31, 2023.
    • $15 million for the tax year 2024 and for all subsequent tax years.

  • Effective Date:
    The provisions of this bill will take effect on July 1, 2025, and will apply to all taxable years beginning on or after January 1, 2025.

  • Repeal of Conflicting Laws:
    The bill includes a clause to repeal any laws or parts of laws that conflict with its provisions.

Impact

  • Beneficiaries:
    The primary beneficiaries of this bill will be nonprofit organizations that provide grants to public schools, as well as the public schools themselves that receive these grants. Increased tax credits may lead to a rise in donations, thereby enhancing educational resources and opportunities.

  • Donors:
    Individuals and businesses that contribute to these nonprofit organizations will benefit from a higher tax credit, making it more financially attractive to support educational initiatives.

Legislative Timeline

  • February 20, 2025: Bill introduced and entered the House Hopper.
  • February 21, 2025: Bill read for the first time in the House.
  • February 24, 2025: Bill read for the second time in the House.

Conclusion

House Bill 565 represents a significant change in the tax incentives for charitable donations to education-focused nonprofits in Georgia. By increasing the aggregate limit on tax credits, the bill seeks to foster greater financial support for public schools, ultimately benefiting students and educational programs across the state.

Compiled from official sources — confirm details with the bill’s official record.

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