Tax Credit

The Georgia Private School Tax Credit law was passed in 2008 to make financial aid available to eligible students seeking an independent-school education. The law established a tax credit for Georgia taxpayers in exchange for support of independent-school financial aid. The law put into place Student Scholarship Organizations (SSOs) that receive applications for the tax credit, collect payments and process disbursement of funds to schools. Participants in the program apply to the SSO for the credit and specify the Georgia independent school(s) to receive their contribution. The state legislature capped initial funding for the program at $50 million but has periodically raised the cap, setting it at $120 million in 2023 while also increasing taxpayer contribution limits.

When you redirect a portion of your Georgia income tax liability, you help Pace Academy to continue its practice of reviewing applications on a need-blind basis and achieve its goal of meeting 100% of the demonstrated financial need of accepted applicants. In addition to helping Pace, you receive a dollar-for-dollar tax credit on your state income taxes equal to the amount of your contribution.

In accordance with the tax credit law, Pace uses Georgia tax-credit funds to provide financial aid to new students enrolling in Pre-First or first grade, or transferring to Pace in any grade from a public school. Families apply for financial assistance through Pace’s Office of Financial Aid. Awards are made for demonstrated need only and are not merit-based; merit-based scholarships are not available at Pace. Tax credit dollars are allocated for the duration of a student’s enrollment at Pace so long as their family reapplies and demonstrates need each year. 

Since 2009, Pace has awarded financial aid using tax credit funds to dozens of students in all divisions—the Lower, Middle and Upper Schools. Our tax credit resources have expanded over time, allowing us to support more students each year and to ensure aid is available for all recipients who continue to demonstrate need. These students are thriving in all areas of Pace student life, including academics, the arts, athletics, community engagement and school leadership.

Participation is a redirection of your state tax dollars and is not considered a charitable gift to Pace. However, Pace recognizes tax credit participants in our Annual Report. We encourage you to also support The Pace Fund to help the school meet its other annual operating needs.