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The Georgia Foster Care Tax Credit launched January 1st and allows state taxpayers a dollar-for-dollar tax credit. Georgia taxpayers who electronically submit their state income taxes can now go online and donate to a new tax credit program that not only reduces their income tax burden but also raises funds for young adults aging out of the foster care system.

The bill establishing this tax credit was sponsored by Sen. Bill Cowsert (R-Athens) during the 2022 session of the Georgia General Assembly.

Under the new law, single taxpayers may contribute up to $2,500 per year to earn the foster care tax credit and married couples may contribute up to $5,000 per year to earn the credit on their state taxes. Individuals who file under an LLC or S Corp may contribute up to $5,000 per year, while large corporations may donate up to 10 percent annually to earn the dollar-for-dollar credit against state income taxes.

“These funds can have a tremendous impact on the lives of these young people who are aging out of foster care,” said Pam Parish, founder and CEO of Connections Homes, a faith-based nonprofit dedicated to connecting those who age out of foster care with mentors who can guide them. “These funds will help increase the capacity of agencies like ours to help reduce the burden of survival that these youth face as they begin to face life out of the system and on their own.”

Connections Homes is one of 20 approved charities to receive funds. The youth range in age from 18 to 24 years, according to Parish.

“Many of these young adults have never had a stable parent in their life and are now facing homelessness,” said Parish. “These funds will do more to reduce poverty, homelessness and despair than any program ever before.”

Data shows that kids in foster care face enormous challenges:

• 70 percent of human trafficking victims report a history of having once been a foster child.

• 81 percent of young men will spend some time in jail.

• 71 percent of girls report being pregnant during the first year they age out of foster care.

• 97 percent of young men and women who age out of foster care find themselves in chronic poverty or worse.

More than 500 young adults age out of Georgia’s foster care system each year and most have no family to turn to after they leave the system. Parish said each young adult that ages out of foster care and ends up homeless costs taxpayers an estimated $40,000 in community programs annually. In contrast, she said, to match a youth with a trained mentoring family will pay off for years to come.

“Would you rather have your tax dollars go to help foster kids or the government? Wouldn’t you rather reduce your state burden and help a foster kid with no stable family?”