Bill > HB341

This bill creates a tax credit for small employers (those with 10 or fewer employees) who offer Individual Coverage Health Reimbursement Arrangements (ICHRAs) to their employees in Georgia. Specifically, the bill allows qualified taxpayers to receive a tax credit for contributing at least $100 per month per employee to an ICHRA, which is a type of health benefit arrangement regulated by federal guidelines. The tax credit will be available for up to five years, with declining credit amounts: $600 per covered employee in the first three years, $400 in the fourth year, and $200 in the fifth year. Employers must apply for preapproval by October 1 of the preceding year and cannot exceed the total aggregate tax credit of $5 million per year. The credit is limited to the employer's income tax liability and cannot be carried forward or backward. The provisions will become effective on July 1, 2025, and apply to taxable years beginning on or after January 1, 2026, with the program set to expire on December 31, 2031. The goal appears to be incentivizing small employers to provide health benefits to their employees through a flexible reimbursement arrangement.

Budget and Finance

https://www.legis.ga.gov/legislation/70073