Bill > HB2694

This bill establishes a new individual income tax credit for small businesses in Arizona that provide an "individual coverage health reimbursement arrangement" (ICHRA) to their employees, which is a type of health benefit plan defined by federal regulations. Specifically, businesses with one to fifty employees that contribute at least $400 per employee to an ICHRA will be eligible for a tax credit equal to $400 multiplied by the number of employees receiving benefits under the ICHRA, starting for tax years after December 31, 2026. This credit can be carried forward for up to five years if it exceeds the taxpayer's liability, and the bill also clarifies how co-owners of a business can claim the credit and allows the Department of Revenue to request information to verify the credit amount. Additionally, this bill updates the schedule for the joint legislative income tax credit review committee to include the new ICHRA credit for review in years ending in 1 and 6.

Budget and Finance

https://apps.azleg.gov/BillStatus/BillOverview/84501