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MS SB2868

Bill

Status

Engrossed

2/25/2026

Primary Sponsor

Nicole Boyd

Click for details

Origin

Senate

2026 Regular Session

AI Summary

  • Employers with fewer than 50 employees can claim an income tax credit of up to $400 per covered employee in the first year they offer an Individual Coverage Health Reimbursement Arrangement (ICHRA) instead of traditional health insurance
  • Credit drops to $200 per covered employee in the second year of offering an ICHRA
  • Total credits claimed statewide are capped at $1,000,000 per calendar year, with claims approved in chronological order until the cap is reached
  • Employers must maintain contribution levels equal to or exceeding their prior year's health insurance benefits to qualify for the first-year credit
  • Unused credits can be carried forward up to 10 years but cannot be refunded, and employers must report to the Department of Revenue every three years on their continued ICHRA participation

Legislative Description

Income tax; allow credit to employer providing individual coverage health reimbursement arrangement (ICHRA) to employees.

Last Action

Title Suff Do Pass As Amended

3/16/2026

Committee Referrals

Ways and Means2/26/2026
Finance1/19/2026

Full Bill Text

No bill text available