Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
HB 1110: Georgia Small Business Healthcare Affordability Act; enact
Last action March 3, 2026 · House Committee Favorably Reported By Substitute
A Georgia House bill would create a state income tax credit for small employers that contribute to individual coverage health reimbursement arrangements for their workers, capped at $10 million a year statewide.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Comm Sub version, the latest the General Assembly's website lists.
In plain language
Georgia law currently has no tax credit tied to individual coverage health reimbursement arrangements (a type of benefit where employers give workers a set amount to buy their own health insurance rather than offering a group plan). This bill, called the Georgia Small Business Resiliency Act, adds one. Employers with fewer than 50 employees who have operated in Georgia since January 1, 2013 could qualify if they offer covered employees paid time off, paid parental leave, a health savings account, and an individual coverage health reimbursement arrangement funded at least $200 per month per employee. Qualifying employers could claim a credit worth up to $600 per covered employee in the first three years they claim it, $400 in the fourth year, and $200 in the fifth year, for a maximum of five years total. Employers must apply for preapproval by October 1 each year, and the state Department of Revenue would issue certificates by November 1. Total credits statewide are capped at $10 million per year. The credit applies to tax years starting on or after January 1, 2026, and the whole provision expires on December 31, 2030.
What the bill does
- Creates a new Georgia income tax credit for small businesses that fund individual coverage health reimbursement arrangements for employees.
- Limits eligibility to employers with fewer than 50 employees operating in Georgia since 2013 that also offer paid time off, paid parental leave, and health savings accounts.
- Caps the credit at $600 per employee for the first three years, dropping to $400 and then $200 in years four and five, with a five-year lifetime limit.
- Sets a statewide cap of $10 million in total credits per year and requires employers to apply for preapproval by October 1 annually.
- Lets pass-through business owners (partners, shareholders, or members) claim the credit based on their share of the business's income if the business itself owes no tax.
- Automatically repeals the entire tax credit program on December 31, 2030.
Who it affects
Small Georgia businesses with fewer than 50 employees that have operated since 2013, their employees who receive individual coverage health reimbursement arrangements, and the Georgia Department of Revenue, which would review applications, issue preapproval certificates, and administer the annual $10 million cap.
Why it matters
Eligible small employers could offset part of the cost of funding individual health coverage for workers instead of a traditional group health plan, potentially making that benefit more affordable to offer. Because approval is capped and first-come, some qualifying businesses could be turned away once the yearly $10 million limit is reached.
Key provisions
- Section 1 names the law the 'Georgia Small Business Resiliency Act.'
- Section 2 adds new Code Section 48-7-40.10 defining 'qualified taxpayer' as a business operating in Georgia since January 1, 2013 with fewer than 50 employees offering specific benefits.
- Subsection (b) requires at least $200 per month in contributions per covered employee and that the contribution match or exceed prior-year employer health spending for that employee.
- Subsection (c) sets the sliding credit amounts: $600 per employee for years one through three, $400 in year four, and $200 in year five, capped at five years total.
- Subsection (d) caps total statewide credits at $10 million per year.
- Subsection (e) requires preapproval applications by October 1 each year, with the Department of Revenue issuing certificates by November 1, prioritizing repeat claimants.
- Subsection (i) repeals the entire Code section on December 31, 2030.
- Section 3 sets the effective date as July 1, 2026, applying to tax years beginning on or after January 1, 2026.
From the bill
“'Qualified taxpayer' means any taxpayer that has operated a business in this state since January 1, 2013, with fewer than 50 employees that offers each covered employee 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.”
“In no event shall the aggregate amount of tax credits allowed pursuant to this Code section exceed $10 million per year.”
“This Code section shall stand repealed and reserved on December 31, 2030.”
Discussed in meetings (7)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Small Business Development Committee, February 17, 2026
From 0:30:22 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The NFIB Georgia Leadership Council chair supported HB 1110, saying it would give employers with 50 or fewer employees an annual tax credit of $600 per employee for contributions toward individual health coverage, including for part-time and seasonal workers. The witness said family premiums had risen 26% over five years and argued that helping employers offer coverage could improve preventive care and reduce emergency-room use. The witness explained that a lower employee limit could exclude businesses once part-time hours were counted as full-time equivalents. An NFIB representative said the bill was scheduled for a Ways and Means subcommittee hearing that afternoon. The representative argued that reimbursement arrangements would help small businesses budget and recruit workers while allowing employees to choose coverage. Both NFIB speakers described safeguards against replacing existing coverage with worse benefits to obtain credits. A committee member supported broader coverage. The chair described local emergency-room and ambulance misuse, saying the community paid more than $1 million annually to subsidize ambulance service. A later contractor witness supported the proposal, describing reliance on a spouse’s corporate job for insurance and coverage difficulties among subcontractors. No amendment or vote was recorded.
House Ways & Means Committee, February 23, 2026
From 0:37:27 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the substitute for HB 1110 would help businesses with 50 or fewer employees recruit and retain workers by supporting employee health benefits. The sponsor described eligibility for businesses contributing $200 monthly to individual health reimbursement arrangements, with a $600 tax credit during the first three years, declining to $400 in year four and $200 in year five. The sponsor said the program would have a $10 million overall cap and expire at the end of 2030. There were no substantive questions, and the subcommittee unanimously approved the bill.
House Ways & Means Committee, March 2, 2026
From 0:19:28 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented a substitute offering a capped tax credit to small businesses that help employees obtain health insurance and meet other requirements. The sponsor said the credit would decline over five years, with a five-year sunset, and was intended to help small businesses compete with larger employers for workers. The sponsor reported unanimous subcommittee approval and support from the Georgia Chamber and NFIB. No members asked questions. The committee approved the substitute by voice vote, with no count stated.
House Rules Committee, March 4, 2026
From 1:26:01 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1110 would offer small businesses a tax credit for contributing to employees' healthcare reimbursement accounts, helping businesses attract and retain workers. Asked how many people would benefit, the sponsor said the bill covered businesses with 50 or fewer employees. A member suggested about 16,000 Georgians; the sponsor responded that many would benefit but did not clearly confirm that estimate. No decision was recorded.
Status timeline
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Scott Hilton (R, HD-48)
- Matt Reeves (R, HD-99)
- Eddie Lumsden (R, HD-12)
- Mark Newton (R, HD-127)
- Vance Smith (R, HD-138)
- Ron Stephens (R, HD-164)
Topics
- small business tax credits
- health insurance benefits
- Georgia income tax
- health reimbursement arrangements