Income tax; certification of certain employers as living wage employers; provide
Summary
HB292 would create a new state income tax credit for Georgia employers that are certified as “living wage employers.” To qualify, an employer must be registered to use E-Verify, operate in Georgia, and have at least five employees all working in living wage jobs. A “living wage job” is defined as a Georgia-based, full-time position of at least 30 hours per week, with no predetermined end date, and pay of at least $15 per hour. Certified employers may advertise that status, but they must notify the Department of Community Affairs if they no longer meet the requirements.
The bill also establishes a tax incentive for hiring and retaining workers in these jobs. A certified living wage employer could claim a $3,500 income tax credit for each individual first hired on or after January 1, 2026, if that employee remains continuously employed in a living wage job for one year. The credit may be claimed only once per employee, cannot exceed the employer’s tax liability for the year, and may be carried forward for up to three years. The Department of Community Affairs and the commissioner of revenue would be responsible for adopting rules, forms, and procedures to administer the program.
Impact
HB292 would amend Georgia’s income tax code by adding a new credit under Article 2 of Chapter 7 of Title 48 and by creating a certification program administered through the Department of Community Affairs. It would affect employers that meet the bill’s wage, hours, and certification standards, while indirectly benefiting employees by encouraging full-time jobs paying at least $15 per hour. The bill would take effect July 1, 2025, and apply to taxable years beginning on or after January 1, 2026.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive and policy-driven rather than contentious. The measure is framed as an incentive-based economic development and wage-support proposal, suggesting an intent to reward employers that provide higher-paying, stable jobs. Because no voting history or transcript is available, there is no documented opposition or endorsement beyond the bill’s sponsorship and structure.
Contention
The main potential points of contention are the wage threshold, the certification requirements, and the fiscal cost of the credit. Supporters are likely to view the bill as a way to encourage better-paying jobs and job retention, while critics may question whether a $15-per-hour standard is sufficient, whether the credit meaningfully changes employer behavior, and whether the state should subsidize wages through the tax code. Employers may also object to the compliance and reporting requirements, especially the loss of certification if they fall below the bill’s standards or pay any worker less than $15 per hour.