Georgia House Bill HB519

Georgia 2025-2026 Regular Session

• Introduced: 2/19/25

Caption

Revenue and taxation; amount of federal work opportunity credit claimed by a taxpayer shall also be allowed as a tax credit; provide

Impact

The implications of HB 519 are substantial, as it integrates federal tax incentives into the state tax structure, potentially leading to substantial savings for businesses that hire eligible employees. Taxpayers can reduce their tax liability by up to $500 for each qualifying employee who is a Georgia resident and part of a targeted group recognized by the U.S. Department of Labor. Notably, this provision encourages businesses to enhance their hiring practices, particularly in a post-pandemic economy where job creation is critical.

Summary

House Bill 519 seeks to amend the Official Code of Georgia Annotated by introducing a provision that allows taxpayers to claim a tax credit against their state income taxes, equivalent to the federal work opportunity tax credit. The credit is aimed primarily at employers who hire individuals from certain targeted groups, as defined in the Internal Revenue Code. This initiative is intended to encourage job creation and support the employment of Georgians who face barriers to employment, thereby strengthening the state's economy through increased workforce participation.

Contention

While the bill has garnered support for incentivizing employment, there may be areas of contention regarding its financial limits and administrative burdens. Critics might argue that while aiming to benefit targeted groups, the credit's cap at $10 million annually could limit the overall impact and reach of the bill. Additionally, concerns about the adequacy of measures to ensure fair verification processes for claims might arise, emphasizing the necessity of clear guidelines and robust oversight to prevent potential misuse of the tax credits.