Bill > HB1667

This bill introduces a tax credit program for small employers in Mississippi who offer Individual Coverage Health Reimbursement Arrangements (ICHRAs) as an alternative to traditional group health insurance. Specifically, the bill defines a "qualified employer" as a business with fewer than 50 employees that is subject to state tax liability and offers an ICHRA. In the first year of offering an ICHRA, employers can claim a tax credit of up to $400 per covered employee if their contribution meets or exceeds the previous year's benefit levels. In the second year, the tax credit drops to $200 per covered employee. Employers must report to the Department of Revenue every three years about their ICHRA offering, and the total tax credits approved statewide are capped at $10 million per fiscal year. Credits will be approved on a first-come, first-served basis and cannot exceed the employer's state tax liability, with any excess credits able to be carried forward for up to 10 years. Employers must claim the credit on their annual state tax return and provide documentation verifying their eligibility. The bill will take effect on January 1, 2026, and is designed to encourage small businesses to provide alternative health benefit options for their employees.