Georgia General Assembly · Full text

HB 1326: Income tax; living wage jobs; provide tax credit

Introduced version, the latest LegiScan holds · Last action February 19, 2026 · Introduced

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House Bill 1326

By: Representatives Neal of the 79th and Jones of the 143rd

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 from income taxes, so as to provide for a tax credit for living wage jobs; to provide for amounts, conditions, and limitations; to provide for definitions; to provide for rules and regulations; to provide for related matters; to repeal conflicting laws; and for other purposes.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:

SECTION 1.

Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to imposition, rate, computation, exemptions, and credits from income taxes, is amended by adding a new Code section to read as follows:

"48-7-40.38.

(a) As used in this Code section, the term:

(1) 'Base wage' means the average hourly rate paid by the taxpayer to the employee in the 12 months before the taxpayer increased the hourly rate to a living wage.

(2) 'Full time' means a job that requires an average of at least 30 hours per week.

(3) 'Living wage' means an hourly rate of pay of $15.00 or more.

(4) 'Living wage job' means a job that:

(A) Is located in this state;

(B) Is full time;

(D) Had a base wage of $10.00 per hour or less.

(b) An employer with 50 or fewer employees shall be allowed a credit against the tax imposed by this article for each 12 month period of employment of an individual in a living wage job. The amount of such credit shall be equal to the difference of the average hourly wage paid to the employee in such 12 month period and the base pay, multiplied by the number of hours worked by the employee in such 12 month period.

(1) To be eligible for such credit, the taxpayer shall have a net increase in the total number of full-time employees in this state at the end of the taxable year for which the credit is claimed over the number of full-time jobs in this state at the end of the previous taxable year;

(2) Such credit shall be first claimed in the taxable year in which the employee completes 12 consecutive months of employment in the living wage job;

(3) No taxpayer shall be allowed such credit for more than five taxable years per living wage job; and

(4) In no event shall the credit provided for in this Code section for a taxable year exceed the taxpayer's income tax liability. Any unused portion of the credit provided for in this Code section shall be permitted to be carried forward and applied to such taxpayer's tax liability for the subsequent three years. The credit provided for in this Code section shall not be applied against such taxpayer's prior years' tax liabilities.

(d) The commissioner shall promulgate rules and regulations and forms necessary to implement and administer this Code section."

SECTION 2.

All laws and parts of laws in conflict with this Act are repealed.