Committee raises scholarship tax-credit cap, narrows rollover and timing rules

The Georgia House Ways and Means Committee on a voice vote approved revisions to a scholarship tax-credit program that raise the annual cap and change how unused subscriptions and insurer participation are handled.

The bill increases the program cap from $120 million to $140 million, narrows corporate rollover of the credits, clarifies insurer participation formulas and modifies the timeframe for funding subscriptions. Representative Carpenter, speaking for the bill, described the suite of changes as both a cap increase and a set of administrative clarifications.

The proposal originally extended the deadline that sponsors have to submit funding from 60 days to 120 days, but the committee adopted a Newton amendment restoring the 60-day deadline. The amendment was moved and seconded on the floor and adopted before the bill passed.

Representative Carpenter said the measure would also change insurer participation “at a higher rate but at a smaller percentage of their policy taxes” and would prevent those tax credits “to be rolled over to the next tax year at the corporate level.” The bill also includes language allowing unfunded subscriptions to be reapplied at 95% after July 1 each year, and raised the program spending cap to $140 million.

Committee members discussed accountability and the administrative details before adopting the amendment reverting the funding deadline. After adoption of that amendment, the committee voted to pass the bill to the next stage.

The bill was favorably reported from subcommittee and passed in full committee on a voice vote.

The committee did not reference a specific state statute in the hearing transcript; the measure changes program rules laid out in the bill text.

Votes at a glance: The bill passed by voice vote after adoption of the Newton amendment to restore the 60-day funding deadline.