Bill > SB2868

This bill establishes an income tax credit for certain small employers in Mississippi who offer their employees 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 for employees to purchase their own health insurance plans on the individual market. To qualify for this credit, an employer must have fewer than 50 employees, be subject to state income tax, and offer an ICHRA. For the first year an employer provides an ICHRA, they can claim a credit of up to $400 per employee if their contribution to the ICHRA meets or exceeds the previous year's benefit level or contribution amount. In the second year, the credit is reduced to up to $200 per 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. There's an annual statewide cap of $10 million on the total credits claimed, and credits cannot exceed an employer's tax liability, though excess credits can be carried forward for up to ten years. The bill also specifies that the credit is claimed on the annual state tax return and requires the department to adopt rules for its implementation, with the provisions taking effect on January 1, 2026.

Budget and Finance

https://billstatus.ls.state.ms.us/2026/pdf/history/SB/SB2868.xml