Georgia “GOAL” Passes New Higher Limits for Pass Through Entities

On May 8, 2013, Governor Deal signed into law new legislation which allows the owners of pass-through entities to receive a Georgia income tax credit for up to $10,000 for QEE credit (aka GOAL Scholarship Program).

Under this QEE credit program, Georgia taxpayers can make contributions to private school scholarships and receive a dollar-for-dollar tax credit.

The new limit for owners on pass through entities go into effect for 2013. Unfortunately, at this current time the annual limit appears to be reaching its maximum.

Under the new rules, an individual taxpayer may only receive a maximum tax credit of $10,000, regardless of ownership in multiple pass through entities.

If the taxpayer’s spouse is also owner in a pass through entity (or entities), the couple may be allowed a tax credit of $10,000 each, for a total of $20,000;

If a taxpayer has already contributed as an individual in 2013, the amount of the credit being requested as the owner of the pass through must be reduced by that amount (e.g., if a married couple has already contributed $2,500, the taxpayer may only request an additional $7,500);

This is a significant win for Georgia based businesses. We strongly recommend that you fully maximize the benefit of this new expanded program.

If you have any questions regarding this program or tax credits in general, please do not hesitate to contact us at 912-353-7800.

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