Georgia businesses are constantly seeking ways to reduce their tax burden, strengthen their workforce, and invest in long-term economic growth. Georgia’s new foster care tax credit delivers on all three.
This isn’t a donation. It’s a dollar-for-dollar tax credit that allows Georgia businesses and taxpayers to redirect their state income taxes to a qualified nonprofit like Fostering Success Act (FSA). That means companies can reduce or even eliminate their Georgia state income tax liability while investing directly in the future workforce.
Each year, more than 600 young adults age out of Georgia’s foster care system. Without support, many fall into poverty, homelessness or incarceration. But with the help of FSA funds, these young adults gain access to essentials like tuition, housing, transportation, medical bills, and, critically, job training and apprenticeships.
Funds are also used to provide much-needed mentors in the lives of these young adults who were removed from their parents’ home due to neglect or abuse. The mentors give them guidance on everything from how to fill out job applications to balancing a checkbook and setting life goals.
This tax credit doesn’t just help youth survive — it helps them thrive. Through partnerships with employers and training programs, former foster youth are placed into apprenticeships that teach real-world skills and prepare them for long-term employment. For Georgia businesses facing labor shortages, this is a direct pipeline to motivated, resilient young workers.
The numbers speak for themselves:
- 97 percent of youth who age out of foster care fall into chronic poverty.
- Only 2 to 6 percent obtain a college degree.
- The annual cost to society for homeless young adults aged 18 to 24 exceeds $89 billion annually.
- Apprenticeship programs have proven to boost retention, productivity, and employee loyalty.
There’s no current cap on how much a Georgia taxpayer or business can contribute. Whether you’re a sole proprietor, a C-corp, or a married couple filing jointly, you can allocate your entire state tax obligation to this credit. It’s capped at $20 million statewide, but there’s still room to donate for your 2025 taxes. And the cap will increase to $30 million in 2026.
The tax credit is changing lives for youth such as Jasmine Beady, a student at Kennesaw State University, who is pursuing a bachelor’s degree with plans to obtain a master’s degree. Beady has no immediate support so it is helping to pay her tuition, housing and transportation so she can focus on her studies and not resort to living on a friend’s sofa.
This tax credit is a great investment for business and youth. Businesses reduce their tax liability while solving a workforce development crisis. They invest in future employees, reduce societal costs, and build goodwill, all without spending a dime beyond what they already owe in taxes.
First Lady Melania Trump has spoken passionately about the 20,000 young adults who age out of foster care each year and often end up homeless, in poverty, or victims of human trafficking. Her concern echoes what Georgia sees firsthand. These young people are future workers, neighbors and leaders. They deserve the same opportunities as any young adult with a stable home and support system.
To learn more about the process, click here.
This is insane. Companies can get out of paying for schools and cops and roads by deciding for themselves where that liability will go? I can’t do that. You can’t do that. Just pay your taxes, or the next time you’re mugged call a foster child.
How about companies just pay their taxes and then Georgia just fully funds it’s foster care system? Social spending for foster children should be determined based on their well-being, not based on the whims of companies looking for tax write-offs and looking to groom their “future workforce”. No thank you.