Bill > SB2868

This bill establishes an income tax credit for certain small employers in Mississippi that 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 give employees tax-free funds 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 receive 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. For 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 cap of $1 million on the total credits claimed statewide, and credits are approved on a first-come, first-served basis. The credit cannot exceed an employer's tax liability for the year, but any excess can be carried forward for up to ten years. The bill also mandates that employers claim the credit on their annual tax return with necessary documentation and allows the Department of Revenue to create rules for its administration, with the credit program taking effect on January 1, 2026.

Budget and Finance

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