# Georgia HB 328: Revenue and taxation; increase annual aggregate limit for tax credits available for certain contributions to student scholarship organizations

Georgia HB 328, Revenue and taxation; increase annual aggregate limit for tax credits available for certain contributions to student scholarship organizations, is a 2025-2026 Regular Session House bill sponsored by Kasey Carpenter (Republican), John Carson (Republican), Houston Gaines (Republican) and 3 others; status signed, last action 2026-07-01 (Effective Date); PRIA reads it as touching household money (as of 2026-10-12).

- Canonical: https://policyrisk.com/state-bill/GA-HB328-2025-2026
- As of: 2026-10-12
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: Georgia HB 328
- State: Georgia
- Session: 2025-2026 Regular Session
- Title: Revenue and taxation; increase annual aggregate limit for tax credits available for certain contributions to student scholarship organizations
- Status: signed
- Chamber: House
- Introduced: 2025-02-06
- Last action: 2026-07-01, Effective Date
- Sponsors: Kasey Carpenter (Republican), John Carson (Republican), Houston Gaines (Republican), Scott Hilton (Republican), Martin Momtahan (Republican), Jason Ridley (Republican)
- Cosponsors: 1
- Subjects: Ways & Means, Rules, General Bill
- Touches household money: yes
- Roll calls: 6 (319 yes, 225 no in all)
- Economic provisions PRIA read: 9

## Summary

No summary available.

## Bill overview: provisions PRIA read

- More students qualify for private-school scholarships: benefit, high. Beginning July 1, 2026, more Georgia students qualify for scholarships without the usual public-school enrollment and six-week attendance requirements. This includes children whose active-duty parent was stationed in Georgia during the previous year. It also covers students with an Individualized E…
- Higher statewide scholarship donation credit cap: benefit, medium. For taxable years beginning January 1, 2027, or later, Georgia raises the annual scholarship donation tax-credit cap to $150 million. The credits cover qualifying contributions to student scholarship organizations. This is the statewide limit across contributors, not a guaranteed credit for any don…
- Higher scholarship credits for insurance-tax businesses: benefit, low. For taxable years beginning January 1, 2027, or later, businesses' scholarship credits against insurance premium taxes have a percentage-based limit. Their combined credits are capped at 6% of the statewide scholarship credit allowance, replacing the fixed $6 million cap. With the $150 million stat…
- More tax credits for public-school donations: benefit, low. For taxable years beginning January 1, 2027, or later, Georgia raises the public-school donation credit cap from $15 million to $25 million. Qualifying donations must go to nonprofit groups that award grants to public schools. The $25 million ceiling applies statewide per calendar year, not to each…
- Lawmakers face scholarship organization income bans: cost, low. Beginning July 1, 2026, Georgia lawmakers and their spouses cannot receive income from certain student scholarship organizations. The ban applies during a taxable year when the organization receives a contribution with an approved scholarship donation tax credit. The law generally applies to taxabl…
- Scholarship caps exempt students with disabilities: mixed, high. Beginning July 1, 2026, most annual scholarships are capped at Georgia's average state and local spending per public-school student. The cap does not apply to students with an Individualized Education Program or a Section 504 Plan. Exempt diagnoses include dyslexia, autism spectrum disorder, speech…
- Cross-district virtual schooling faces tighter rules: mixed, medium. Beginning July 1, 2026, new rules cover students attending a district-run virtual school outside their home school system. When these students exceed 5% of virtual enrollment, at least 90% of funds earned for them must support their virtual instruction; excess money returns to the state. Under that…
- Scholarship funds gain stricter payment safeguards: mixed, medium. Beginning July 1, 2026, parents must endorse scholarship awards specifically to the private school or authorize electronic deposits under Revenue Department rules. Parents can use an electronic signature, but cannot appoint school employees or related entities to endorse awards for them; violations…
- Broader transit-tax uses but tighter limits: mixed, low. Beginning July 1, 2026, eligible transit sales-tax uses expand to roads, bridges, public transit, rail, airports, buses, and seaports. Related infrastructure and services, qualifying capital projects, and repayment of earlier general obligation debt for these purposes are also eligible. These tax f…

## Sponsors and cosponsors

- Sponsor: Kasey Carpenter (Republican), House
- Sponsor: John Carson (Republican), House
- Sponsor: Houston Gaines (Republican), House
- Sponsor: Scott Hilton (Republican), House
- Sponsor: Martin Momtahan (Republican), House
- Sponsor: Jason Ridley (Republican), House
- Cosponsor: Shawn Still (Republican), Senate

## Roll call votes

| Date | Chamber | Motion | Result | Yes | No | Other |
| --- | --- | --- | --- | --- | --- | --- |
| 2026-04-02 | Senate | AGREE TO HOUSE AMENDMENT TO SENATE SUBSTITUTE | pass | 30 | 22 | 2 |
| 2026-04-02 | Senate | SHALL THE RULING OF THE CHAIR BE SUSTAINED | pass | 30 | 22 | 2 |
| 2026-03-31 | House | Agree to Senate Sub as Am | pass | 99 | 67 | 6 |
| 2026-03-25 | Senate | MOTION TO ENGROSS: HB 328, HB 369, HB 519, HB 1112 | pass | 32 | 19 | 4 |
| 2026-03-25 | Senate | PASSAGE BY SUBSTITUTE | pass | 30 | 20 | 4 |
| 2025-03-06 | House | PASSAGE | pass | 98 | 75 | 1 |

## Actions (20)

- 2026-07-01: Effective Date
- 2026-05-11: House Date Signed by Governor (House)
- 2026-05-11: Act 463
- 2026-04-10: House Sent to Governor (House)
- 2026-04-02: Senate Agreed House Amend or Sub (Senate)
- 2026-03-31: House Agreed Senate Amend or Sub As Amended (House)
- 2026-03-25: Senate Engrossed (Senate)
- 2026-03-25: Senate Third Read (Senate)
- 2026-03-25: Senate Passed/Adopted By Substitute (Senate)
- 2026-03-23: Senate Committee Favorably Reported By Substitute (Senate)
- 2026-03-20: Senate Recommitted (Senate)
- 2026-03-19: Senate Read Second Time (Senate)
- 2026-03-18: Senate Committee Favorably Reported By Substitute (Senate)
- 2025-03-10: Senate Read and Referred (Senate)
- 2025-03-06: House Third Readers (House)
- 2025-03-06: House Passed/Adopted By Substitute (House)
- 2025-03-03: House Committee Favorably Reported By Substitute (House)
- 2025-02-11: House Second Readers (House)
- 2025-02-10: House First Readers (House)
- 2025-02-06: House Hopper (House)

## Bill text

- HB 328/AP* (v14): [PDF](https://www.legis.ga.gov/api/legislation/document/20252026/249076)

## Related bills

- SB 160: Reckless Stunt Driving; a motor vehicle involved in a second offense of reckless stunt driving; replace the forfeiture penalty (signed)
- SB 384: Motor Vehicle; optional five-year motor vehicle registration and revalidation for certain motor vehicles; provide (signed)
- SB 76: License Plates; specialty license plate benefitting the Georgia Veterans Service Foundation; establish (signed)
- SB 406: "Georgia Property Owners' Bill of Rights Act"; enact (signed)
- HB 1391: Specialty license plates; honor public safety officers; establish (signed)
- HB 1344: Georgia Insurance Affordability and Claims Integrity Act; enact (signed)

## Sources
- [HB 328/AP* (v14) (PDF)](https://www.legis.ga.gov/api/legislation/document/20252026/249076)

## Related
- [SB 160: Reckless Stunt Driving; a motor vehicle involved in a second offense of reckles…](https://policyrisk.com/state-bill/GA-SB160-2025-2026)
- [SB 384: Motor Vehicle; optional five-year motor vehicle registration and revalidation f…](https://policyrisk.com/state-bill/GA-SB384-2025-2026)
- [SB 76: License Plates; specialty license plate benefitting the Georgia Veterans Servic…](https://policyrisk.com/state-bill/GA-SB76-2025-2026)
- [SB 406: "Georgia Property Owners' Bill of Rights Act"; enact](https://policyrisk.com/state-bill/GA-SB406-2025-2026)
- [HB 1391: Specialty license plates; honor public safety officers; establish](https://policyrisk.com/state-bill/GA-HB1391-2025-2026)
- [HB 1344: Georgia Insurance Affordability and Claims Integrity Act; enact](https://policyrisk.com/state-bill/GA-HB1344-2025-2026)
- [Georgia bills](https://policyrisk.com/states/georgia/bills)
- [Georgia state hub](https://policyrisk.com/states/georgia)
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Source: PRIA, https://policyrisk.com/state-bill/GA-HB328-2025-2026 (as of 2026-10-12).