An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Small Business Health Care Premiums Contribution Tax Credit.
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Overview
This bill creates a tax credit for small businesses in Pennsylvania to help cover the costs of providing health insurance to their employees. It establishes the ‘Small Business Health Care Premiums Contribution Tax Credit,’ allowing qualified small businesses to claim a credit equal to 100% of the aggregate contributions made to employee health reimbursement arrangements. The credit is available to businesses with 50 or fewer employees and requires detailed reporting on employee contributions and health insurance providers. The credit is capped at $5,000 per employee.
Key provisions
- Creates a tax credit for small businesses to cover employee health insurance premiums.
- The credit is equal to 100% of the ‘aggregate contribution’ made to employee health reimbursement arrangements.
- Qualified taxpayers must report employee names, addresses, and Social Security numbers, as well as health insurance provider details.
- The credit is available to businesses with 50 or fewer employees.
- The first $5,000 in contributions per employee is excluded from taxable income.
- Pass-through entities can elect to transfer a portion of the credit to shareholders or partners.
- The credit is available beginning in 2027.
Who is affected
- Small businesses (specifically those with 50 or fewer employees)
- Employees of small businesses
- Health insurance providers
- The Department of Revenue
- Taxpayers
Bill text
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Document of record
- Version
- Pn 3516 Html
- Published
- Not published in the source record
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Sponsors
Official sponsors from legislative records.
9 on record
Primary sponsor
Cosponsors
Daniel Deasy
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