Georgia families will soon have another option to help pay for their children's education after Gov. Brian Kemp announced Tuesday that the state has officially opted into a new federal tax credit scholarship program.

Kemp said he signed an Internal Revenue Service form that allows Georgia to participate in the program, which was created under the federal One Big Beautiful Bill Act passed last summer. The move, he said, builds on Georgia's existing school choice efforts and gives parents another tool to support their children's education.

"Passing a ban on obscene materials and ensuring the integrity of girls' sports, and it's why we passed the Georgia Promise Scholarship Act to ensure families can use their tax dollars to find the best education options for their child," Kemp said. "In less than a year since that program was really stood up and its first application portal opened, Promise is already benefiting over 7,700 students in our state."

Kemp said the new federal program will complement Georgia's existing donor-funded school choice tax credit, known as the Georgia GOAL Scholarship Program, which was first created in 2008 and expanded in 2018 and again in 2022.

"Now that we have a like-minded partner in the White House with President Trump, I'm grateful that the positive impacts of the Georgia GOAL Scholarship will not only be enhanced by this federal tax credit, but also replicated across the country," Kemp said.

Lt. Gov. Burt Jones praised the move, calling it a win for families and donors who support school choice.

"This will allow parents even more options for their kids and allow individuals and companies who believe in school choice to donate their hard-earned dollars toward those initiatives," Jones said. "If you care about the children who are in those schools, then you will want to promote programs like the Georgia GOAL Scholarship as well as this federal scholarship program."

House Speaker Jon Burns said the decision strengthens education freedom while maintaining support for public schools.

"This is a great day to celebrate this step toward educational choice and freedom for students and families across this entire state," Burns said. "Our commitment to strong public schools will never waver. This new federal program simply represents a historic chance to strengthen the educational options available to Georgia's parents and young people."

Kemp emphasized that opting into the program did not require new legislation.

"All they had to do is sign an IRS form," Kemp said. "That's probably the happiest I've ever been signing an IRS document."

How the Federal Tax Credit Scholarship program works

The federal tax credit scholarship program was created under the FY2025 reconciliation act, also known as the One Big Beautiful Bill Act, and officially signed into law on July 4, 2025. The program will take effect on Jan. 1, 2027.

Under the program, taxpayers can receive a dollar-for-dollar federal income tax credit of up to $1,700 for donations made to state-recognized scholarship-granting organizations, known as SGOs. These organizations use the donations to provide K-12 education scholarships to eligible students.

Scholarships are limited to students from families earning less than 300% of their area's median income. Funds can be used for private school tuition, tutoring, books, supplies, special needs services, transportation, uniforms, and certain technology expenses. The scholarships are considered tax-free income for recipients.

States can choose whether to participate by recognizing eligible SGOs within their borders. Georgia's decision to opt in allows students who live in the state to qualify for the program. SGOs must operate as 501(c)(3) nonprofits and spend at least 90% of their revenue on scholarships.

The law also requires the federal tax credit to be reduced by the value of any state tax credit awarded for the same donation.