25 LC 50 1065
House Bill 341
By: Representatives Newton of the 127
th
, Williamson of the 112
th
, Lumsden of the 12
th
,
Kelley of the 16
th
, Taylor of the 173
rd
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code 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 related matters; to repeal conflicting laws; and for6
other purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to10
imposition, rate, computation, exemptions, and credits for income taxes, is amended by11
revising Code Section 48-7-40.10, which is reserved, as follows:12
"48-7-40.10.13
(a) As used in this Code section, the term:
14
(1) 'Covered employee' means an employee who is covered by an individual coverage15
health reimbursement arrangement provided by a qualified taxpayer.16
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(2) 'Individual coverage health reimbursement arrangement' means a health17
reimbursement arrangement established pursuant to C.F.R. Section 146.123.18
(3) 'Qualified taxpayer' means any taxpayer with 100 or fewer employees that offers an19
individual coverage health reimbursement arrangement.20
(b) For taxable years beginning on or after January 1, 2026, a qualified taxpayer shall be21
allowed a tax credit against the tax imposed under this article for contributions to an22
individual coverage health reimbursement arrangement for employees who are residents23
of this state, provided that:24
(1) The qualified taxpayer contributed at least $100.00 per month to an individual25
coverage health reimbursement arrangement for each covered employee; and26
(2) The contribution made by the qualified taxpayer for each employee for which the27
qualified taxpayer is seeking a credit pursuant to this Code section is equal to or greater28
than the total amount of contributions to any employer sponsored health benefit plan29
made by the qualified taxpayer for such employee in the previous taxable year.30
(c)(1) The amount of the credit allowed pursuant to this Code section shall not exceed31
an amount equal to:32
(A) In the first three years a credit is claimed pursuant to this Code section, $600.0033
per covered employee;34
(B) In the fourth year a credit is claimed pursuant to this Code section, $400.00 per35
covered employee; and36
(C) In the fifth year a credit is claimed pursuant to this Code section, $200.00 per37
covered employee.38
(2) No qualified taxpayer shall be allowed a tax credit pursuant to this Code section for39
more than five total years.40
(d) The aggregate amount of tax credits allowed pursuant to this Code section shall not41
exceed $5 million in 2026. The aggregate amount of tax credits allowed pursuant to this42
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Code section shall be increased by $5 million for any year for which the prior year's annual43
aggregate limit was reached.44
(e)(1) To be allowed a tax credit pursuant to this Code section, a taxpayer shall submit45
an application for preapproval no later than October 1 of the year preceding the year in 46
which the credit pursuant to this Code section would be allowed.47
(2) The department shall require preapproval applications to contain such information48
as is necessary to substantiate a taxpayer's eligibility for tax credits allowed pursuant to49
this Code section.50
(3) The department shall review completed preapproval applications in the order in51
which such applications were received.52
(4) The department shall approve properly completed and timely submitted preapproval53
applications and shall issue preapproval certificates to approved taxpayers by54
November 1 of each year, certifying the amount of credits each such taxpayer is eligible55
to claim if the taxpayer meets the conditions of this Code section.56
(f) In no event shall the total amount of a tax credit allowed to any qualified taxpayer57
exceed such taxpayer's income tax liability; provided, however, that any unused tax credit58
shall be allowed the qualified taxpayer against up to such taxpayer's succeeding three years'59
tax liability. No such credit shall be allowed the qualified taxpayer against prior years' tax60
liability.61
(g) The department shall promulgate any rules and regulations necessary to implement and62
administer the provisions of this Code section. Reserved."63
SECTION 2.64
All laws and parts of laws in conflict with this Act are repealed.65
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