Taxpayer Services Division
POLICY STATEMENT IT-2000-07-01-1

Issue Date:  July 1, 2000

Effective for tax years beginning on or after January 1, 2001.

RE: Driver Education Credit

The Georgia Legislature passed House Bill 1532, which enacted Georgia Code Section 48-7-29.5. This bill establishes, for tax years beginning on or after January 1, 2001, a credit for amounts expended for a dependent minor child for a successfully completed course of driver education. Georgia Code Section 48-7-29.5 reads as follows:

  1. A taxpayer shall be allowed a credit against the tax imposed by Code Section 48-7-20 with respect to the amount expended by such taxpayer for a completed course of driver education for a dependent minor child of such taxpayer at a private driver training school licensed by the Department of Public Safety under Chapter 13 of Title 43, 'The Driver Training School License Act,' except as otherwise provided by this Code section. The amount of such tax credit per dependent minor child of a taxpayer shall be the actual amount expended for such course, or $150.00, whichever is less.
  2. (1) The tax credit provided by this Code section shall be allowed not more than once for each dependent minor child of a taxpayer.
    (2) In no event shall the aggregate amount of the tax credit provided by this Code section exceed the taxpayer's income tax liability.
  3. No credit shall be allowed under this Code section with respect to any driver education expenses either deducted or subtracted by the taxpayer in arriving at Georgia taxable net income or with respect to any driver education expenses for which amounts were excluded from Georgia net taxable income.
  4. No credit shall be allowed under this Code section unless the taxpayer submits with the claim for such credit written proof of the successful completion of the course of driver education by the dependent minor child and the amount expended by the taxpayer for such course.
  5. The commissioner shall promulgate any rules and regulations necessary to implement and administer this Code section."

Question 1: Does an amount expended, for a completed course of driver education, to a private or public high school qualify for this credit?

Answer 1: No, Georgia Code Section 48-7-29.5(a) indicates that only "the amount expended for a completed course of driver education at a private driver training school" qualifies for this credit. A private driver training school is one which is primarily engaged in offering driving instruction.

Question 2: What type of documentation is required to be submitted with the return when the credit is claimed?

Answer 2: Georgia Code Section 48-7-29.5(d) indicates that no credit is allowed unless both of the following is attached to the return:

  1. Written proof of the successful completion of the course.
  2. Written proof of the amount expended for the course.

Question 3: Would a completed course of driver education include additional courses offered by private driver training schools such as defensive driver education courses?

Answer 3: Yes, Georgia Code Section 48-7-29.5 does not limit the type of course, but only specifies that it has to be a course of driver education. However, as Georgia Code Section 48-7-29.5(b)(1) indicates, the credit is only allowed once for each dependent minor child.

Question 4: Can any unused credit be carried back or forward to other tax years?

Answer 4: No, Georgia Code Section 48-7-29.5 does not provide for any type of carryover.

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