Bill > HB370

This bill introduces a tax credit for small employers (those with fewer than 50 employees) who provide individual coverage health reimbursement arrangements (ICHRAs) to their employees in Georgia. The tax credit is available for taxable years beginning on or after January 1, 2026, and provides employers with a credit of up to $600 per covered employee in the first three years, $400 in the fourth year, and $200 in the fifth year. To qualify, employers must contribute at least $200 per month per employee to an ICHRA and contribute an amount equal to or greater than their previous year's health benefit plan contributions. Employers must apply for preapproval by October 1 of the preceding year, with the state department reviewing applications and issuing preapproval certificates by November 1. The total aggregate tax credits are limited to $5 million per year, and no employer can claim credits for more than five total years. Pass-through entities can allocate credits to their members, shareholders, or partners, but credits cannot exceed the taxpayer's income tax liability and cannot be carried forward or backward. The bill is set to expire on December 31, 2028, and becomes effective on July 1, 2025.

Budget and Finance

https://www.legis.ga.gov/legislation/70132