HB7: HB7 Income tax; workforce-ready graduates employed in high-tech full-time jobs in rural counties; provide tax credit

26 LC 44 3498S The House Committee on Ways and Means offers the following substitute to HB 7: A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to the imposition, rate, computation, exemptions, and credits relative to income2 taxes, so as to provide for a tax credit for workforce-ready graduates employed in high-tech3 full-time jobs in rural counties in this state; to require the Department of Labor to establish4 certain criteria; to provide for conditions and limitations; to p r o v i d e f o r d e f i n i t i o n s ; t o5 provide for rules and regulations and forms; to provide for related matters; to provide for an6 effective date and applicability; to repeal conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to the10 imposition, rate, computation, exemptions, and credits relative to income taxes, is amended11 by adding a new Code section to read as follows:12 "48-7-29.29.13 (a) As used in this Code section, the term:14 (1) 'Employer' means an enterprise or organization, whether co rporation, partnership,15 limited liability company, proprietorship, association, trust, business trust, real estate16 H. B. 7 (SUB) - 1 - 26 LC 44 3498S trust, or other form of organization, and its affiliates, which is registered and authorized17 to use the federal employment verification system known as 'E-Verify' or any successor18 federal employment verification system and is engaged in or car rying on any business19 activities within this state.20 (2) 'High-tech full-time job' means employment:21 (A) That is located in a rural county;22 (B) As a data scientist, software developer, information secur ity analyst, web23 developer, computer sales engineer, information technology mana ger, computer24 research scientist, network and systems administrator, or computer support specialist;25 (C) Through an employer located in a rural county that is also a small business;26 (D) That involves a regular work week of 30 hours or more;27 (E) That has no predetermined end date; and28 (F) That pays at or above the average hourly wage of the count y with the lowest29 average hourly wage in the state, as reported in the most recently available annual issue30 of the Georgia Employment and Wages Averages Report of the Department of Labor.31 (3) 'Rural county' means a county in this state that has a population of less than 50,00032 with 10 percent or more of such population living in poverty based upon the most recent,33 reliable, and applicable data published by the United States Bu reau of the Census. On34 or before December 31 of each year, the commissioner of the Department of Community35 Affairs shall publish a list of such counties.36 (4) 'Small business' means a business that is independently owned and operated, is not37 dominant in its field of operation, and employs fewer than 20 employees.38 (5) 'Workforce-ready graduate' means an individual who has obtained a postsecondary39 credential from a nationally accredited institution in the disc ipline of engineering or40 computer, information, or data science within a high-tech area of study and who is41 certified by the Department of Labor as having completed a workforce readiness program42 H. B. 7 (SUB) - 2 - 26 LC 44 3498S approved by the Department of Labor in accordance with subsecti on (b) of this Code43 section.44 (b) By January 1, 2027, the Department of Labor shall adopt criteria for the establishment45 of workforce readiness programs and the certification of workforce-ready graduates for the46 purposes of this Code section.47 (c)(1) On and after January 1, 2027, each workforce-ready grad uate employed in a48 high-tech full-time job for at least 40 weeks during a 12 month period shall be eligible49 for an income tax credit in the amount of $4,000.00 for each su ch year of employment50 against the tax imposed under this article; provided, however, that no individual shall be51 allowed more than $12,000.00 of tax credits under this paragraph.52 (2) No individual first employed in a high-tech full-time job before January 1, 2027,53 shall qualify to be eligible to receive the credit provided by this subsection.54 (3) No individual shall be eligible to receive the credit provided by this subsection more55 than once.56 (d) In no event shall the credit provided by subsection (c) of this Code section for a taxable57 year exceed the taxpayer's income tax liability. Any unused portion of the credit provided58 by subsection (c) of this Code section shall be permitted to be carried forward and applied59 to the taxpayer's tax liability for the subsequent three years. T h e c r e d i t p r o v i d e d b y60 subsection (c) of this Code section shall not be applied against the taxpayer's prior years'61 tax liabilities.62 (e) The commissioner shall promulgate rules and regulations an d forms necessary to63 implement and administer the provisions of this Code section."64 SECTION 2.65 This Act shall become effective on July 1, 2026, and shall be applicable to all taxable years66 beginning on or after January 1, 2027.67 H. B. 7 (SUB) - 3 - 26 LC 44 3498S SECTION 3.68 All laws and parts of laws in conflict with this Act are repealed.69 H. B. 7 (SUB) - 4 -