Bill > HB1110

This bill, titled the "Georgia Small Business Resiliency Act," creates a new tax credit for qualified small businesses in Georgia that offer specific health benefits to their employees. A "qualified taxpayer" is defined as a business operating in Georgia since January 1, 2013, with fewer than 50 employees, that provides at least ten paid days off for vacation and personal necessity, some form of paid parental leave, access to a health savings account, and an "individual coverage health reimbursement arrangement." An "individual coverage health reimbursement arrangement" is a specific type of health benefit plan that allows employers to reimburse employees for health insurance premiums purchased on the individual market, as defined by federal regulations. To qualify for the tax credit, businesses must contribute at least $200 per month per employee to these arrangements and ensure their contribution is at least as much as they contributed to any employer-sponsored health benefit plan for that employee in the previous year. The credit amount decreases over five years, starting at $600 per employee and reducing to $200 per employee by the fifth year, with a lifetime limit of five years for claiming the credit. There's an annual statewide cap of $10 million on the total tax credits issued. Businesses must apply for preapproval by October 1st of the year before they wish to claim the credit, and the Department of Revenue will issue preapproval certificates by November 1st. If the business is a pass-through entity, the credit can be passed on to its members, shareholders, or partners. The credit cannot exceed the taxpayer's income tax liability and cannot be carried forward or back. The Department of Revenue will establish rules for implementation, and this new tax credit provision will be repealed and reserved on December 31, 2030. The bill becomes effective on July 1, 2026, and applies to tax years beginning on or after January 1, 2026.

Budget and Finance

https://www.legis.ga.gov/legislation/72629