MS SB3123

Allows qualified small employers with fewer than 50 employees to claim an income tax credit for offering Individual Coverage Health Reimbursement Arrangements (ICHRAs) instead of traditional group health insurance plans.

First-year credit up to $400 per covered employee if the employer's ICHRA contribution equals or exceeds prior year benefits or premium contributions; second-year credit reduced to $200 per covered employee.

Employers must report to the Department of Revenue every three years after claiming the credit, detailing whether they continued the ICHRA and the benefit levels provided.

Total aggregate credits statewide capped at $10,000,000 annually, approved chronologically by filing date; unused credits may carry forward up to ten years but cannot be refunded or carried back.

Effective January 1, 2025; requires Department of Revenue to adopt implementing rules.