MS HB1091

Small employers are allowed an income tax credit for up to 50% of health insurance premiums paid for employees and their dependents, whichever is less than the taxpayer's total tax liability minus other credits.

Unused portions of the credit may be carried forward for five successive tax years.

Health insurance premiums applied toward the credit cannot be deducted for state income tax purposes.

Small employer is defined as any business entity employing no more than 20 employees on at least 50% of working days during the year; affiliated companies are counted as a single employer.

Tax credits earned by partnerships, LLCs, S corporations, or similar pass-through entities may be allocated to partners, members, or shareholders on a pro rata basis or per their agreement; effective January 1, 2010.