Bill > HB565

This bill establishes an Employer Health Insurance Contribution Tax Credit program that allows qualified taxpayers (such as businesses, partnerships, and corporations) to receive tax credits for contributing to employees' health insurance premiums. Employers can claim a tax credit equal to 100% of their aggregate contributions if they contribute to less than 50 employees, 75% if they contribute to 50-99 employees, and 50% if they contribute to over 100 employees, with a maximum credit calculation based on the first $500 contributed per employee. To qualify, employers must complete an application detailing employee information, health insurance provider details, and contribution amounts. The bill includes provisions that require equal contribution opportunities for employees and prohibits discrimination in contributions. Pass-through entities like partnerships can elect to transfer credits to shareholders or partners. The first $5,000 in contributions will be excluded from income calculations, and the tax credit program will become applicable for taxable years beginning after December 31, 2025. The Department of Revenue is tasked with developing regulations and guidelines for implementing this new tax credit program, which aims to incentivize employers to support their employees' health insurance costs.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=565