HB1110: HB1110 Georgia Small Business Healthcare Affordability Act; enact

26 LC 59 0361S 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 Cod e of Georgia Annotated,1 relating to imposition, rate, computation, exemptions, and credits for income taxes, so as to2 create a tax credit for certain employers that offer individual coverage health reimbursement3 arrangements to employees; to provide for terms, conditions, and limitations; to provide for4 preapproval; to provide for aggregate annual limits; to provide for rules and regulations; to5 provide for definitions; to provide for a sunset; to provide for related matters; to provide for6 a short title; to provide for an effective date and applicability; to repeal conflicting laws; and7 for other purposes.8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9 SECTION 1.10 This Act shall be known and may be cited as the "Georgia Small Business Resiliency Act."11 SECTION 2.12 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to13 imposition, rate, computation, exemptions, and credits for inco me taxes, is amended by14 revising Code Section 48-7-40.10, which is reserved, as follows:15 H. B. 1110 (SUB) - 1 - 26 LC 59 0361S "48-7-40.10.16 (a) As used in this Code section, the term:17 (1) 'Covered employee' means an employee who is covered by an individual coverage18 health reimbursement arrangement provided by a qualified taxpayer.19 (2) 'Individual coverage health reimbursement arrangement' mea n s a h e a l t h20 reimbursement arrangement established pursuant to 45 C.F.R. Section 146.123.21 (3) 'Qualified taxpayer' means any taxpayer that has operated a business in this state22 since January 1, 2013, with fewer than 50 employees that offers each covered employee23 at least ten paid days off for vacation and personal necessity, some form of paid parental24 leave, access to a health savings account, and an individual co verage health25 reimbursement arrangement.26 (b) For taxable years beginning on or after January 1, 2026, a qualified taxpayer shall be27 allowed a tax credit against the tax imposed under this article where:28 (1) The qualified taxpayer contributed at least $200.00 per mo nth to an individual29 coverage health reimbursement arrangement for each covered employee; and30 (2) The contribution made by the qualified taxpayer for each e mployee for which the31 qualified taxpayer is seeking a credit pursuant to this Code section is equal to or greater32 than the total amount of contributions to any employer sponsore d health benefit plan33 made by the qualified taxpayer for such employee in the previous taxable year.34 (c)(1) The amount of the credit allowed pursuant to this Code section shall not exceed35 an amount equal to:36 (A) In the first three years a credit is claimed pursuant to this Code section, $600.0037 per covered employee;38 (B) In the fourth year a credit is claimed pursuant to this Co de section, $400.00 per39 covered employee; and40 (C) In the fifth year a credit is claimed pursuant to this Cod e section, $200.00 per41 covered employee.42 H. B. 1110 (SUB) - 2 - 26 LC 59 0361S (2) No qualified taxpayer shall be allowed a tax credit pursuant to this Code section for43 more than five total years.44 (d) In no event shall the aggregate amount of tax credits allo wed pursuant to this Code45 section exceed $10 million per year.46 (e)(1) To be allowed a tax credit pursuant to this Code section, a taxpayer shall submit47 an application for preapproval no later than October 1 of the year preceding the year in48 which the credit pursuant to this Code section would be allowed.49 (2) The department shall require preapproval applications to contain such information50 as is necessary to substantiate a taxpayer's eligibility for tax credits allowed pursuant to51 this Code section.52 (3) The department shall review completed preapproval applicat ions in the order in53 which such applications were received; provided, however, that the department shall54 prioritize the review of completed preapproval applications from qualified taxpayers that55 have already claimed a credit pursuant to this Code section before any other preapproval56 applications.57 (4) The department shall approve properly completed and timely submitted preapproval58 applications and shall issue preapproval certificates to approv ed taxpayers by59 November 1 of each year, certifying the amount of credits each such taxpayer is eligible60 to claim if the taxpayer meets the conditions of this Code section.61 (f) If the qualified taxpayer allowed a tax credit pursuant to this Code section is a62 pass-through entity and has no income tax liability pursuant to this article, such tax credit63 may be claimed by its members, shareholders, or partners based on the percentage of such64 qualified taxpayer's distributive income to which the member, s hareholder, or partner is65 entitled.66 (g) In no event shall the total amount of a tax credit allowed to any qualified taxpayer67 pursuant to this Code section exceed such taxpayer's income tax liability. No unused tax68 H. B. 1110 (SUB) - 3 - 26 LC 59 0361S credit shall be allowed the qualified taxpayer against succeedi ng years' tax liability. No69 such credit shall be allowed the qualified taxpayer against prior years' tax liability.70 (h) The department shall promulgate any rules and regulations necessary to implement and71 administer the provisions of this Code section.72 (i) This Code section shall stand repealed and reserved on December 31, 2030. Reserved."73 SECTION 3.74 This Act shall become effective on July 1, 2026, and shall be a pplicable to taxable years75 beginning on or after January 1, 2026.76 SECTION 4.77 All laws and parts of laws in conflict with this Act are repealed.78 H. B. 1110 (SUB) - 4 -