Because there are limited tax credits available each year ($120 million for 2023), a taxpayer interested in contributing to Arete must be pre-approved by the Georgia Department of Revenue (“DOR”). By approving a request, the DOR sets aside a certain amount of the available tax credits specifically for the respective taxpayer. The taxpayer first submits a 2023 tax credit application to Arete Scholars. Each step in the process is outlined below:
FOR 2023 TAX CREDIT
1. Arete submits the taxpayer request for the 2023 tax credit to the DOR on the first business day of January 2023.
2. Taxpayer receives a DOR Approval Letter within 15 days after Arete Scholars submits the application. The letter indicates the approval amount and 60-day deadline for making payment to Arete.
3. Arete Scholars also receives notice of Taxpayer’s DOR approval and will email taxpayer detailed instructions regarding payment deadline and options.
4. When notified of DOR approval (by DOR Approval Letter or email from Arete Scholars), taxpayer must submit payment to Arete Scholars before his or her 60-day payment deadline.
5. Arete Scholars will send taxpayer Form IT-QEE-SSO1 (tax receipt) for claiming the credit on the 2023 Georgia income tax return.
6. Taxpayer Claims Georgia Income Tax Credit: When 2023 taxes are filed in 2024, taxpayer will take a 100% Georgia income tax credit.
Taxpayers should always consult with an accountant for tax guidelines and implications.