State Removes Limits on Donations to Tax Credits Helping Kids Aging Out of Foster Care

Staff Report From Georgia CEO

Tuesday, July 2nd, 2024

Limits on donations to a state tax credit that supports foster children aging out of the system were eliminated effective Monday.

The General Assembly created the foster-care tax credit last year with a $20 million cap. In its first year, the program raised almost $11.6 million.

About 700 young Georgians age out of the foster care system each year, most with no family to return to after they leave the system. Data from numerous studies shows most who leave foster care end up homeless, in chronic poverty, in jail, or become victims of human trafficking.

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.

“Every Georgia taxpayer ,,, whether a business or an individual … should see this as a no-brainer to either eliminate or greatly reduce their state income taxes,” said Heidi Carr, executive director of Fostering Success Act Inc., (FSA) one of the foster-care support organizations authorized by the state to work with these young people.

“At the same time, their tax credit donation will not only save lives but save more tax dollars in the long run by keeping these youth off the streets, out of jail, and out of poverty.”

FSA and other nonprofits use the proceeds from donations to the program to provide foster youth who age out of the system medical care, counseling, 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.

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