---
title: HB 169. Ad valorem tax; breach of a covenant for bona fide conservation use related to solar generation of energy; limit exceptions
collection: bills
id: 2025-2026/hb169
cite_as: HB 169, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb169
md_url: https://georgiacommons.org/bills/2025-2026/hb169.md
text_url: https://georgiacommons.org/bills/2025-2026/hb169/text
source_url: https://www.legis.ga.gov/legislation/69646
date: 2026-03-25
status: engrossed
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: 611
omitted_url: https://georgiacommons.org/bills/2025-2026/hb169.md?full=1
bill_number: HB 169
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-27
last_action: Senate Read Second Time
sponsors:
- Charles Cannon
- Robert Dickey
- John Corbett
- Angie O'Steen
- David Huddleston
- Jaclyn Ford
- Chuck Hufstetler
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB169/2025
upstream_id: 1947641
summaries_model: claude-sonnet-5
topic_tags:
- small business taxes
- health benefits
- income tax credits
- employer health coverage
---
# HB 169. Ad valorem tax; breach of a covenant for bona fide conservation use related to solar generation of energy; limit exceptions
## Text
The Senate Committee on Finance offered the following
substitute to HB 169:
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 employing 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 Senate substitute for HB 169 would create a new Georgia income tax credit for small businesses that offer employees individual coverage health reimbursement arrangements, health savings account access, and paid leave.
### Plain-language summary
Although this bill was originally filed under a title about property tax rules for land under conservation-use covenants tied to solar energy, the Senate Finance Committee substitute rewrites its actual content entirely. The substitute creates the 'Georgia Small Business Resiliency Act,' a new income tax credit under O.C.G.A. § 48-7-40.10 for employers with fewer than 50 employees that offer paid vacation and personal leave, paid parental leave, health savings account access, and an individual coverage health reimbursement arrangement (a way employers reimburse workers for buying their own health insurance).
Qualifying employers that contribute at least $200 per month per covered employee to this arrangement can claim a credit worth up to $600 per employee in the first three years, phasing down to $400 and then $200 in years four and five, capped at five years total and $10 million statewide per year. Employers must apply for preapproval each year by October 1. The credit applies to tax years starting January 1, 2026, and the whole provision repeals itself on December 31, 2030.
### What it does
- Creates a new Georgia income tax credit for small employers (fewer than 50 employees) that offer individual coverage health reimbursement arrangements alongside paid leave and health savings account access.
- Requires qualifying employers to contribute at least $200 per month per covered employee to the arrangement to claim the credit.
- Sets a declining credit schedule: $600 per employee in years one through three, $400 in year four, and $200 in year five, capped at five years per employer.
- Caps total statewide credits claimed under this provision at $10 million per year and requires employers to apply for preapproval by October 1 each year.
- Allows pass-through entities with no income tax liability to pass the credit to their members, shareholders, or partners.
- Automatically repeals the entire credit program on December 31, 2030.
### Who it affects
Small businesses with fewer than 50 employees that offer certain health and leave benefits, their employees who receive individual coverage health reimbursement arrangements, and the Georgia Department of Revenue, which must review applications, issue preapproval certificates, and administer the credit's rules.
### Why it matters
Small employers who already offer, or are considering offering, individual health reimbursement arrangements and paid leave could reduce their state income tax bill by hundreds of dollars per employee for up to five years, potentially changing how some small businesses structure employee health benefits in Georgia.
### Key provisions
- Section 1 names the measure the 'Georgia Small Business Resiliency Act.'
- Section 2 rewrites O.C.G.A. § 48-7-40.10 to define 'covered employee,' 'individual coverage health reimbursement arrangement,' and 'qualified taxpayer' (an employer with fewer than 50 employees offering specified benefits).
- Subsection (c) sets the credit amount on a declining scale: $600 per employee for years one through three, $400 in year four, $200 in year five, with a five-year maximum per employer.
- Subsection (d) caps total statewide credits at $10 million per year.
- Subsection (e) requires employers to submit preapproval applications by October 1 each year, with the Department of Revenue issuing certificates by November 1.
- Subsection (i) repeals the entire credit program on December 31, 2030.
- Section 3 sets the effective date as July 1, 2026, applicable to tax years beginning on or after January 1, 2026.
## Status
- Status: Engrossed (2025-02-27)
- Last action: Senate Read Second Time (2026-03-25)
- Sponsors: Charles Cannon, Robert Dickey, John Corbett, Angie O'Steen, David Huddleston, Jaclyn Ford, Chuck Hufstetler
- Official page: https://www.legis.ga.gov/legislation/69646
> The history, votes, and amendments (611 characters) are at https://georgiacommons.org/bills/2025-2026/hb169.md?full=1