1. What is the history of the tuition tax credit legislation that gave rise to NWG Scholars SSO Program?
In 2008, the Georgia General Assembly passed House Bill 1133 and Governor Sonny Perdue signed it into law. The new law provides for the creation of State Scholarship Organizations (“SSOs”) that use Georgia income tax credit-eligible contributions to provide scholarships to independent school students.
2. How does the tax credit work?
A taxpayer making a donation to NWG Scholars receives an income tax credit against their Georgia income taxes for their contribution. For example, if a married couple filing a joint return owes $3,000 of Georgia income taxes and makes the maximum contribution to NWG Scholars of $2,500, they will only have to pay $500 of income taxes to the state of Georgia.
3. What is the maximum amount of Georgia income taxes that an individual can redirect each year to NWG Scholars?
Each calendar year, as long as there is room available under the $58 million annual cap on tax credits established by HB 1133, a married couple filing a joint return can donate up to $2,500 of their income tax payments to NWG Scholars. The maximum for an individual is $1,000.
4. If an individual has paid all of his or her estimated Georgia income taxes for a particular tax year and makes a contribution to NWG Scholars in that year, will he or she still receive a Georgia income tax credit for the amount contributed to NWG Scholars?
Yes. If, after applying the tax credit against the Georgia income tax due and applying all estimated tax payments and withheld income taxes, there is an overpayment, the taxpayer can elect to have all or a portion of the overpayment paid to him or her.
5. Can corporations contribute to the NWG Scholars Program?
Yes, corporations can receive a tax credit for amounts contributed to the NWG Scholars Program, up to 75 percent of their Georgia income tax liability. Presently, this tax credit is only fully available to “C” corporations. Until the law is changed, regardless of the amount contributed to NWG Scholars by an “S” corporation or other “pass through” entity, “S” corporation shareholders (or the owners of such other “pass-through entities”) are subject to the individual limitations of $2,500 or $1,000.
6. If an individual donor itemizes deduction, can they take a charitable income tax deduction on their federal income tax return for the amount of the contribution to NWG Scholars?
Yes.
7. If I donate some of my Georgia income tax payment to NWG Scholars, can I designate that it be used to provide scholarships for students who will be attending a specific Participating School?
Yes, by placing the School’s name on the memo line of your contribution check, at least 93% of the donation will be allocated toward NWG Scholars scholarships to that School.
8. If I re-direct some of my Georgia tax payments to NWG Scholars, can I designate the student who will benefit from the financial assistance?
No. NWG Scholars does not accept donations designated for specific individuals. However, a donor to NWG Scholars may designate a Participating School as noted above. If so designated, the financial aid committee at the Participating School will have the discretion of deciding which qualified recipients will be recommended to NWG Scholars for the receipt of the NWG Scholars scholarships.
9. What is the deadline for making contributions that qualify for the tax credit? How is the contribution made?
In order to ensure approval of an intended contribution in time to secure a Georgia income tax credit, an individual or corporation must complete and file with the Georgia Department of Revenue a Form IT-QEE-TP1 pre-approval form. This form is available on our web page and, once completed, should be mailed directly to NWG Scholars. Until an individual or corporation receives approval from the DOR, no payment is required. Within 30 days after receiving the DOR approval, the contribution to NWG Scholars must be made. Upon receipt of the approval Form from DOR, an individual or corporation should immediately deliver to NWG Scholars office a check payable to NWG Scholars together with a copy of the approved Form IT-QEE-TP1. If desired, be sure to designate specific Participating School in the memo section of the check. All contributions to NWG Scholars must be made within the 30-day period and prior to the end of the applicable calendar year.
10. How does a family apply to receive financial assistance from the NWG Scholars Program?
The admissions office of each Participating School will explain the availability of the NWG Scholars Program to interested applicants to the school. Any applicant family interested in receiving a NWG Scholars scholarship merely needs to express such interest to the admissions office. They will then be asked to provide proof of their child’s enrollment in a public school or eligibility to enter public kindergarten. If the applicant family is approved for a NWG Scholars scholarship, prior to enrollment, the family, Participating School, and NWG Scholars enter into a Scholarship Agreement.
11. After a recipient student’s first NWG Scholars scholarship year, will he or she automatically receive NWG scholars funding each subsequent year that they are enrolled at our school?
The amount of the NWG Scholars scholarship received in each year is determined annually based on the availability of NWG Scholars funds designated for use at the Participating School, and the student’s compliance with behavioral, academic, and covenant standards.
12. After a Participating School awards NWG Scholars scholarships in a particular year, what happens to any remaining NWG Scholars funds that have been designated for use at the Participating School?
NWG Scholars does not hold any unused funds (unless otherwise directed) that have been designated for use at a Participating School. We encourage that Participating Schools place non-designated funds in an escrow bank account (separate from operating accounts) of their choosing for reserve, or future use. Unlike most SSO Programs, it is not our intent to hold these funds year-to-year. We believe that Participating Schools are best suited to manage these funds.
13. What is NWG Scholars Program Federal Tax ID number?
Our tax ID number is: 46-3207843
By Georgia law, the taxpayer and NWG Scholars will both receive a copy of the taxpayer’s Approval Letter from the GA-DOR. Please remember to keep a copy for your records.
NWG Scholars Program, Inc. is a recognized 501(c)3 exempt non-profit corporation incorporated under the laws of the State of Georgia. NWG Scholars Program, Inc is certified by the Georgia Department of Education as a Student Scholarship Organization (SSO) under Georgia law (HB 1133). Always consult with your independent attorney or tax adviser for recommendations and before changing or implementing any financial, tax, or estate planning strategy.
NWG SCHOLARS Program 501(c)3 Exemption Letter
14. How do I find more information about the NWG Scholars Program?
If you have questions about the NWG Scholars Program, please review the About page or contact Jamila Suber via phone at 4zero4.6three0.1two11, or email at jsuber AT nwgscholars.org.