ATLANTA – The state House of Representatives voted Monday to increase an income tax credit for Georgia taxpayers who contribute to nonprofit organizations that help foster children who age out of the foster care system.
House Bill 136, which passed 170-2, would raise the annual cap on contributions to the program from $20 million to $30 million.
The General Assembly created the tax credit in 2022 to help the approximately 700 youths in foster case who turn 18 and age out of the system each year.
“These are young people who often end up in poverty or homeless,” Rep. Mark Newton, R-Augusta, said on the House floor Monday. “If not for this help, they can end up in prison or pregnant.”
Taxpayers wishing to contribute to the program can receive dollar-for-dollar state income tax credits for up to $2,500 per year, while married couples filing jointly can receive up to $5,000. Corporate donations are limited to 10% of the company’s annual tax liability.
The donations go toward providing program participants with medical care, mentoring, food, car repairs and housing, as well as aid for high-school GED programs and tuition to pay for vocational or college courses needed to complete their education.
Newton said at least 90% of the contributions must be spent directly on helping the participants, while no more than 10% can go to cover the program’s overhead.
The bill now moves to the Georgia Senate.