MS HB386

Allows small businesses to claim an income tax credit equal to health insurance premiums paid for employees and their dependents.

Limits the credit to the lesser of aggregate premiums paid during the tax year or the taxpayer's tax liability minus other allowable credits.

Permits unused credit amounts to be carried forward for up to five succeeding tax years.

Defines "small business" as a commercial enterprise with fewer than 50 full-time employees, less than $1,000,000 in net worth, or less than $175,000 in net annual profit after taxes.

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