Georgia’s Basic Skills Education Program Tax Credit
For Taxable Years 2016-2019
The Basic Skills Education Tax credit program is designed to promote employer participation and sponsorship of activities that increase educational attainment and the acquisition of a General Educational Development (GED®) credential by employees. Up to $100,000 is available per employer per year and $1 million per year statewide.
There are 2 Tax Credit Categories:
- $400 For each Employee who passes the GED® Test which was paid for by the Employer, or
- $1,200 For each employee who successfully completes a 40-hour class while being compensated at his or her normal rate of pay, and then passes the GED® Test which was paid for by the Employer
An individual employee can only be included in either category of tax credit. The same employee cannot be counted in both.
There are 2 possible Class Types:
- Employer Sponsored A Basic Skills Education class (minimum of 40 hours of instruction) administered by an approved basic skills provider with the cost of the class paid for by the Employer Employer Provided A Basic Skills
- Education Class (minimum of 40 hours of instruction), administered by the Employer with the cost of the class paid for by the Employer
The Technical College System of Georgia, Office of Adult Education can assist Employers by answering questions about class types and other class considerations. We can also help Employers estimate the number of employees who would benefit from this type of program, in order to make a more accurate tax credit preapproval request to the Georgia Department of Revenue’s (GDOR) Georgia Tax Center.
There are 5 Steps to Complete the Process and File for the Tax Credit:
- Contact the TCSG Office of Adult Education to learn about Program Pre-Certification
- Seek Tax Credit Preapproval through the Georgia DOR Tax Center
- Operate the Basic Skills Class and/or Pay GED® Testing Fees
- Submit Evidence of Program Outcomes to OAE for Final Certification
- File a Georgia Tax Return and Claim the Tax Credit
Please contact the Office of Adult Education to request a free copy of the Basic Skills Education Program Tax Credit Procedures Guide, which provides all of the forms and instructions needed to get started.