HB1326: HB1326 Income tax; living wage jobs; provide tax credit

26 LC 50 1283 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 Cod e of Georgia Annotated,1 relating to imposition, rate, computation, exemptions, and credits from income taxes, so as2 to provide for a tax credit for living wage jobs; to provide fo r amounts, conditions, and3 limitations; to provide for definitions; to provide for rules a nd regulations; to provide for4 related matters; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to8 imposition, rate, computation, exemptions, and credits from inc ome taxes, is amended by9 adding a new Code section to read as follows:10 "48-7-40.38.11 (a) As used in this Code section, the term:12 (1) 'Base wage' means the average hourly rate paid by the taxpayer to the employee in13 the 12 months before the taxpayer increased the hourly rate to a living wage.14 (2) 'Full time' means a job that requires an average of at least 30 hours per week.15 (3) 'Living wage' means an hourly rate of pay of $15.00 or more.16 H. B. 1326 - 1 - 26 LC 50 1283 (4) 'Living wage job' means a job that:17 (A) Is located in this state;18 (B) Is full time;19 (C) Pays a living wage on or after July 1, 2026; and20 (D) Had a base wage of $10.00 per hour or less.21 (b) An employer with 50 or fewer employees shall be allowed a credit against the tax22 imposed by this article for each 12 month period of employment of an individual in a living23 wage job. The amount of such credit shall be equal to the difference of the average hourly24 wage paid to the employee in such 12 month period and the base pay, multiplied by the25 number of hours worked by the employee in such 12 month period.26 (c) The tax credit provided for in this Code section shall be subject to the following27 conditions and limitations:28 (1) To be eligible for such credit, the taxpayer shall have a net increase in the total29 number of full-time employees in this state at the end of the taxable year for which the30 credit is claimed over the number of full-time jobs in this state at the end of the previous31 taxable year;32 (2) Such credit shall be first claimed in the taxable year in which the employee33 completes 12 consecutive months of employment in the living wage job;34 (3) No taxpayer shall be allowed such credit for more than five taxable years per living35 wage job; and36 (4) In no event shall the credit provided for in this Code section for a taxable year exceed37 the taxpayer's income tax liability. Any unused portion of the credit provided for in this38 Code section shall be permitted to be carried forward and applied to such taxpayer's tax39 liability for the subsequent three years. The credit provided for in this Code section shall40 not be applied against such taxpayer's prior years' tax liabilities.41 (d) The commissioner shall promulgate rules and regulations an d forms necessary to42 implement and administer this Code section."43 H. B. 1326 - 2 - 26 LC 50 1283 SECTION 2.44 All laws and parts of laws in conflict with this Act are repealed.45 H. B. 1326 - 3 -