ATLANTA – State Representative John Carson (R-Marietta) commends the Georgia Department of Audits and Accounts’ recent economic analysis report regarding the state’s Qualified Education Expense (QEE) Tax Credit program for student scholarship opportunities, which estimates an annual cost savings of $61.4 million at a “student switcher rate” of 90 percent, or the percentage of students that would return to public schools if not for the program. This analysis highlights that the QEE tax credit would result in $28 million in reduced state costs and $33.4 million in local cost savings, revealing a positive impact for state and local taxpayers.
“I am very pleased to see that this economic analysis by the state of Georgia verifies the incredible costs savings of the program,” said Rep. Carson. “Georgia parents already knew that this was an excellent opportunity for meeting their children’s educational needs. Now, we have a true economic analysis which proves the tax credit is also a winner for Georgia taxpayers. I look forward to continuing to advocate for this excellent program during the 2024 legislative session.”
The report from the Georgia Department of Audits and Accounts estimates that the state would break even on the QEE tax credit program for 2021 contributions if the switcher rate just reaches 67 percent. This rate is based on the number of scholarships from 2021 contributions and Georgia taxpayers’ use of credits on state tax returns. This break-even rate will vary due to changes in the credit amount issued, the number of resulting scholarships and state expenditures for public education. Per Georgia law, students in second through 12th grade are required to be in public school for at least six weeks before participating in the program.
In addition, the report estimates that if 90 percent of students switched, as studies of other states’ programs have found, the QEE tax credit would lead to an education expenditure reduction of approximately $109 million, resulting in net cost savings, after the tax credits, of approximately $28 million. The report further indicated that similar “school choice” programs are correlated with positive impacts on student test scores, graduation rates and college attainment, thus providing future potential public benefits of lifetime earnings and achievement.
In 2008, the Georgia General Assembly first passed legislation to offer tax credits to individuals and corporations who donate to student scholarship organizations (SSOs), which provide student scholarships to parents of eligible children who plan to attend private schools.
The General Assembly has since championed multiple bills sponsored by Rep. Carson to expand this program to expand eligibility to more Georgia families. During the 2018 legislative session, Rep. Carson sponsored House Bill 217 to increase the tax credit cap from $58 million to $100 million per year. Following the 2022 legislative session, House Bill 517 was enacted to expand the annual tax credit limit to $120 million.
The full audit report may be found online here.
Representative John Carson represents the citizens of District 46, which includes portions of Cherokee and Cobb counties. He was elected to the House of Representatives in 2011 and currently serves as Chairman of the Retirement Committee. He also serves on the Appropriations Subcommittee on Transportation and the Energy, Utilities & Telecommunications, Insurance, Intragovernmental Coordination, Rules, State Planning & Community Affairs, Transportation and Ways & Means committees.
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