HB 292: Income tax; certification of certain employers as living wage employers; provide

Currently, Georgia offers no special certification or tax credit tied to paying workers a minimum hourly wage above the federal floor. This bill creates a new certification program run by the Department of Community Affairs for employers who use the federal E-Verify system and employ at least five people, all in 'living wage jobs' defined as full-time positions with no set end date paying $15 or more per hour. Certified employers could advertise their status and would qualify for a $3,500 income tax credit for each new employee hired on or after January 1, 2026, who stays in a living wage job for a full year. Employers lose certification if they drop below three qualifying employees or pay anyone less than $15 an hour, and violators can be suspended from the program and the credit for one to five years. The credit cannot exceed the employer's tax liability but unused amounts carry forward three years. The law would take effect July 1, 2025, applying to tax years starting on or after January 1, 2026.

• Creates a new state certification category called 'living wage employer' for businesses using E-Verify that employ five or more people in qualifying jobs.
• Defines a 'living wage job' as a full-time position in Georgia with no set end date paying at least $15.00 per hour.
• Grants a $3,500 income tax credit to certified employers for each new hire who stays in a living wage job for one full year.
• Strips certification from employers who drop below three qualifying employees or pay any worker less than $15 an hour.
• Allows the commissioner of community affairs to suspend a violating employer from the certification program and tax credit for one to five years.
• Lets unused tax credit amounts carry forward for three years but bars applying the credit to past years' taxes.

Georgia employers with five or more employees, especially those considering raising pay to $15 an hour or above, workers in newly created full-time jobs meeting that pay threshold, the Department of Community Affairs, which would run the certification program, and the Department of Revenue, which administers the tax credit.

Employers who commit to paying at least $15 an hour for new full-time jobs could reduce their state income tax bills by $3,500 per qualifying hire, while workers in those roles would receive a defined minimum hourly wage and job stability requirement tied to the employer's certification status.

• Section 1 adds new Code section 48-7-40.37 to Title 48, defining 'employer' and 'living wage job' (full-time, no end date, at least $15.00 per hour, located in Georgia).
• Subsection (b) sets certification eligibility at five or more qualifying employees and requires reporting to the Department of Community Affairs if an employer falls out of compliance.
• Subsection (b)(2) revokes certification if an employer drops below three qualifying employees or pays any employee less than $15.00 per hour.
• Subsection (c) creates a $3,500 tax credit per new hire retained for one year in a living wage job, starting with hires on or after January 1, 2026.
• Subsection (d) limits the credit to one claim per individual, caps it at the employer's tax liability, and allows a three-year carryforward with no retroactive application.
• Section 2 sets the effective date as July 1, 2025, applicable to taxable years beginning on or after January 1, 2026.

1. 2025-02-10House Second Readers (House)
2. 2025-02-06House First Readers (House)
3. 2025-02-05House Hopper (House)

• Anissa Jones (D, HD-143)Primary sponsor
• Dewey McClain (D, HD-109)
• Debbie Buckner (D, HD-137)
• Karen Mathiak (R, HD-082)
• Yasmin Neal (D, HD-079)
• Lisa Campbell (D, HD-035)

• income tax credits
• minimum wage
• living wage jobs
• employer certification
• state tax incentives