---
title: HB 1110. Georgia Small Business Healthcare Affordability Act; enact
collection: bills
id: 2025-2026/hb1110
cite_as: HB 1110, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1110
md_url: https://georgiacommons.org/bills/2025-2026/hb1110.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1110/text
source_url: https://www.legis.ga.gov/legislation/72629
date: 2026-03-03
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 199
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1110.md?full=1
bill_number: HB 1110
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-01-29
last_action: House Committee Favorably Reported By Substitute
sponsors:
- Scott Hilton
- Matt Reeves
- Eddie Lumsden
- Mark Newton
- Vance Smith
- Ron Stephens
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1110/2025
upstream_id: 2102362
summaries_model: claude-sonnet-5
topic_tags:
- small business tax credits
- health insurance benefits
- Georgia income tax
- health reimbursement arrangements
---
# HB 1110. Georgia Small Business Healthcare Affordability Act; enact
## Text
The House Committee on Ways and Means offers the following substitute to HB 1110:
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to imposition, rate, computation, exemptions, and credits for income taxes, so as to
create a tax credit for certain employers that offer individual coverage health reimbursement
arrangements to employees; to provide for terms, conditions, and limitations; to provide for
preapproval; to provide for aggregate annual limits; to provide for rules and regulations; to
provide for definitions; to provide for a sunset; to provide for related matters; to provide for
a short title; to provide for an effective date and applicability; to repeal conflicting laws; and
for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Georgia Small Business Resiliency Act."
SECTION 2.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
imposition, rate, computation, exemptions, and credits for income taxes, is amended by
revising Code Section 48-7-40.10, which is reserved, as follows:
"48-7-40.10.
(a) As used in this Code section, the term:
(1) 'Covered employee' means an employee who is covered by an individual coverage
health reimbursement arrangement provided by a qualified taxpayer.
(2) 'Individual coverage health reimbursement arrangement' means a health
reimbursement arrangement established pursuant to 45 C.F.R. Section 146.123.
(3) '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.
(b) For taxable years beginning on or after January 1, 2026, a qualified taxpayer shall be
allowed a tax credit against the tax imposed under this article where:
(1) The qualified taxpayer contributed at least $200.00 per month to an individual
coverage health reimbursement arrangement for each covered employee; and
(2) The contribution made by the qualified taxpayer for each employee for which the
qualified taxpayer is seeking a credit pursuant to this Code section is equal to or greater
than the total amount of contributions to any employer sponsored health benefit plan
made by the qualified taxpayer for such employee in the previous taxable year.
(c)(1) The amount of the credit allowed pursuant to this Code section shall not exceed
an amount equal to:
(A) In the first three years a credit is claimed pursuant to this Code section, $600.00
per covered employee;
(B) In the fourth year a credit is claimed pursuant to this Code section, $400.00 per
covered employee; and
(C) In the fifth year a credit is claimed pursuant to this Code section, $200.00 per
covered employee.
(2) No qualified taxpayer shall be allowed a tax credit pursuant to this Code section for
more than five total years.
(d) In no event shall the aggregate amount of tax credits allowed pursuant to this Code
section exceed $10 million per year.
(e)(1) To be allowed a tax credit pursuant to this Code section, a taxpayer shall submit
an application for preapproval no later than October 1 of the year preceding the year in
which the credit pursuant to this Code section would be allowed.
(2) The department shall require preapproval applications to contain such information
as is necessary to substantiate a taxpayer's eligibility for tax credits allowed pursuant to
this Code section.
(3) The department shall review completed preapproval applications in the order in
which such applications were received; provided, however, that the department shall
prioritize the review of completed preapproval applications from qualified taxpayers that
have already claimed a credit pursuant to this Code section before any other preapproval
applications.
(4) The department shall approve properly completed and timely submitted preapproval
applications and shall issue preapproval certificates to approved taxpayers by
November 1 of each year, certifying the amount of credits each such taxpayer is eligible
to claim if the taxpayer meets the conditions of this Code section.
(f) If the qualified taxpayer allowed a tax credit pursuant to this Code section is a
pass-through entity and has no income tax liability pursuant to this article, such tax credit
may be claimed by its members, shareholders, or partners based on the percentage of such
qualified taxpayer's distributive income to which the member, shareholder, or partner is
entitled.
(g) In no event shall the total amount of a tax credit allowed to any qualified taxpayer
pursuant to this Code section exceed such taxpayer's income tax liability. No unused tax
credit shall be allowed the qualified taxpayer against succeeding years' tax liability. No
such credit shall be allowed the qualified taxpayer against prior years' tax liability.
(h) The department shall promulgate any rules and regulations necessary to implement and
administer the provisions of this Code section.
(i) This Code section shall stand repealed and reserved on December 31, 2030. Reserved."
SECTION 3.
This Act shall become effective on July 1, 2026, and shall be applicable to taxable years
beginning on or after January 1, 2026.
SECTION 4.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
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.
### Plain-language summary
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 it 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.
## Status
- Status: Introduced (2026-01-29)
- Last action: House Committee Favorably Reported By Substitute (2026-03-03)
- Sponsors: Scott Hilton, Matt Reeves, Eddie Lumsden, Mark Newton, Vance Smith, Ron Stephens
- Official page: https://www.legis.ga.gov/legislation/72629
> The history, votes, and amendments (199 characters) are at https://georgiacommons.org/bills/2025-2026/hb1110.md?full=1