MS HB1418

Allows small employers to claim an income tax credit for 50% of health insurance premiums paid for employees and their dependents, capped at the lesser of 50% of premiums paid or total tax liability minus other credits.

Permits unused tax credits to be carried forward for up to five (5) succeeding tax years.

Defines "small employer" as any business that employed no more than 20 employees on at least 50% of working days during the tax year, with affiliated companies counted as one employer.

Allows partnerships, LLCs, S corporations and similar pass-through entities to allocate earned credits to partners, members or shareholders on a pro rata basis or per any agreement.

Health insurance premiums applied toward the credit cannot be claimed as a state income tax deduction and takes effect January 1, 2011.