Bill > HB343

This bill authorizes a state income tax credit for certain small employers, specifically those with fewer than 50 employees, who offer an Individual Coverage Health Reimbursement Arrangement (ICHRA) instead of traditional employer-provided health insurance. An ICHRA is a type of health benefit account that allows employers to provide tax-advantaged funds to employees, which employees can then use to purchase their own health insurance plans on the individual market. For the first year an employer offers an ICHRA, they can claim a credit of up to $400 per covered employee, provided their contribution to the ICHRA meets or exceeds the previous year's benefit level or contribution amount. For the second year, the credit is reduced to up to $200 per covered employee. Employers claiming this credit must report to the Department of Revenue every three years about their continued use of ICHRA and the benefits provided. The total amount of tax credits approved statewide is capped at $10 million per fiscal year, and credits are awarded on a first-come, first-served basis. Any unused credit can be carried forward for up to ten years, but it cannot exceed the employer's total tax liability. Employers must claim the credit on their annual tax return and provide necessary documentation, and the Department of Revenue will establish rules for its administration. This act will take effect on January 1, 2026.

Budget and Finance

https://billstatus.ls.state.ms.us/2026/pdf/history/HB/HB0343.xml