WI AB915

Creates a $400 per employee income and franchise tax credit for small businesses (fewer than 50 employees) that offer individual coverage health reimbursement arrangements (HRAs) to their employees

Requires employers to contribute at least $400 per covered employee to the HRA during the taxable year to qualify for the credit

Individual coverage HRAs must comply with federal regulations (26 CFR 54.9802-4, 29 CFR 2590.702-2, and 45 CFR 146.123), which require covered employees to be enrolled in individual health insurance or Medicare

Partnerships, LLCs, and tax-option corporations cannot directly claim the credit but must pass it through to partners, members, or shareholders in proportion to their ownership interests

Effective for taxable years beginning after December 31, 2025