HB1152: HB1152 Health Coverage Affordability and Fairness Act; enact

26 LC 59 0254 House Bill 1152 By: Representatives Park of the 107th, Hugley of the 141st, Miller of the 62nd, Gisler of the 121st, Herring of the 145th, and others A BILL TO BE ENTITLED AN ACT To amend Code Section 48-7-27 of the Official Code of Georgia A nnotated, relating to1 computation of taxable net income, so as to provide for an income tax deduction for certain2 health insurance premium payments by individuals; to provide fo r income based caps; to3 provide a short title; to provide for legislative findings; to provide for related matters; to4 provide an effective date; to provide for applicability; to rep eal conflicting laws; and for5 other purposes.6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:7 SECTION 1.8 This Act shall be known and may be cited as the "Health Coverag e Affordability and9 Fairness Act."10 SECTION 2.11 The General Assembly finds that:12 (1) Many Georgia families struggle to afford health insurance even when employer13 sponsored plans are offered;14 H. B. 1152 - 1 - 26 LC 59 0254 (2) Rising health insurance premiums impose a disproportionate burden on middle-income15 households;16 (3) Allowing a state tax deduction for employee paid health insurance premiums will help17 families maintain coverage and reduce the uninsured rate; and18 (4) The state should structure the deduction to concentrate benefits among low-income and19 middle-income workers while ensuring fiscal responsibility.20 SECTION 3.21 Code Section 48-7-27 of the Official Code of Georgia Annotated, relating to computation of22 taxable net income, is amended in subsection (a) by striking "and" at the end of paragraph23 (14), by replacing the period at the end of paragraph (15) with "; and", and by adding a new24 paragraph to read as follows:25 "(16)(A) As used in this paragraph, the term 'qualifying taxpay er' means a taxpayer26 with a federal adjusted gross income, as defined in the federal Internal Revenue Code27 of 1986, of $60,000.00 or less for a single taxpayer, head of h ousehold, or married28 taxpayer filing a separate return, and $120,000.00 or less for a married couple filing a29 joint return.30 (B) An amount equal to 100 percent of the health insurance pre mium paid by a31 qualifying taxpayer for employer sponsored health insurance, individual marketplace32 coverage purchased through a state or federal exchange, or COBR A continuation33 coverage during the taxable year, including medical, dental, an d vision insurance34 premiums, but not including deductibles, copayments, or other c ost-sharing35 arrangements, to the extent such deductions have not been included in federal adjusted36 gross income, as defined under the federal Internal Revenue Cod e of 1986, and the37 expenses have not been provided from a health reimbursement arrangement and have38 not been included in itemized nonbusiness deductions.39 H. B. 1152 - 2 - 26 LC 59 0254 (C) The commissioner shall be authorized to promulgate any rul es and regulations40 necessary to implement and administer the provisions of this pa ragraph. The41 commissioner may require documentation of premium payments, including employer42 statements, marketplace forms, or insurer invoices.43 (D) The department shall produce an annual estimate of fiscal impact associated with44 the deduction provided for in subparagraph (B) of this paragraph and shall make such45 estimate available to the House and Senate Committees on Appropriations."46 SECTION 4.47 This Act shall become effective upon its approval by the Governor or upon its becoming law48 without such approval and shall be applicable to all taxable ye ars beginning on and after49 January 1, 2026.50 SECTION 5.51 All laws and parts of laws in conflict with this Act are repealed. 52 H. B. 1152 - 3 -