PA HB565

Creates a new tax credit for Pennsylvania employers who contribute to employees' health insurance premiums, with only the first $500 per employee counting toward the credit calculation

Credit amount varies by employer size: 100% of aggregate contributions for employers with fewer than 50 employees, 75% for 50-99 employees, and 50% for more than 100 employees

Excludes the first $5,000 in employer health insurance contributions from an employee's taxable income under Pennsylvania's personal income tax

Prohibits carryforward, carryback, refunds, or sale/assignment of unused credits; pass-through entities may transfer credits to shareholders, members, or partners

Applies to taxable years beginning after December 31, 2025, and takes effect 60 days after enactment