Ga. debates expanded tax credits for scholarships - FOX 32 News Chicago

Ga. debates expanded tax credits for scholarships

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By RAY HENRY
Associated Press

ATLANTA (AP) - A ranking Republican wants to expand a tax credit benefiting private school students, a system that critics say allows donors to illegally earmark scholarships for individual students.

Republican Rep. Earl Ehrhart of Powder Springs introduced a plan this week to enlarge a system that allows individuals and businesses to obtain tax credits when they make donations to scholarship providers to private schools. He has proposed raising the cap on the tax credits to $80 million annually from roughly $50 million.

The bill also would let the state offer $100 million in tax credits for people who contribute toward public school enrichment programs.

The Southern Education Foundation recently asked tax authorities to investigate whether parents are effectively earmarking contributions for their own children in violation of state law.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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