HB 169: Ad valorem tax; breach of a covenant for bona fide conservation use related to solar generation of energy; limit exceptions

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.

• 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.

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.

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.

• 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.

1. 2026-03-25Senate Read Second Time (Senado)
2. 2026-03-25Senate Committee Favorably Reported By Substitute (Senado)
3. 2025-02-28Senate Read and Referred (Senado)
4. 2025-02-27House Passed/Adopted By Substitute (Cámara de Representantes)
5. 2025-02-27House Third Readers (Cámara de Representantes)
6. 2025-02-19House Committee Favorably Reported By Substitute (Cámara de Representantes)
7. 2025-02-03House Second Readers (Cámara de Representantes)
8. 2025-01-30House First Readers (Cámara de Representantes)

• Charles Cannon (R, HD-172)Patrocinador principal
• Robert Dickey (R, HD-134)
• John Corbett (R, HD-174)
• Angie O'Steen (R, HD-169)
• David Huddleston (R, HD-072)
• Jaclyn Ford (R, HD-170)
• Chuck Hufstetler (R, SD-052)

1. AprobadaVotación: Cámara de Representantes27 de febrero de 2025

   160 a favor, 0 en contra (7 sin votar, 13 ausentes)

   Passage: House Vote #106

• small business taxes
• health benefits
• income tax credits
• employer health coverage