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To: Ways and Means
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026
By: Representative Lamar
HOUSE BILL NO. 343
(As Sent to Governor)
AN ACT TO AUTHORIZE AN INCOME TAX CREDIT FOR CERTAIN 1
EMPLOYERS THAT OFFER AN INDIVIDUAL COVERAGE HEALTH REIMBURSEMENT 2
ARRANGEMENT IN LIEU OF A TRADITIONAL EMPLOYER-PROVIDED HEALTH 3
INSURANCE PLAN; TO PROVIDE THE AMOUNT OF THE TAX CREDIT; TO 4
PROVIDE THE REPORTING REQUIREMENTS WITH THE DEPARTMENT OF REVENUE; 5
AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. (1) For purposes of this section, the following 8
words and phrases shall have the meanings as provided in this 9
subsection unless the context clearly indicates otherwise: 10
(a) "Covered employee" means an employee for whom the 11
qualified employer provides a contribution to an ICHRA. 12
(b) "Department" means the Department of Revenue. 13
(c) "ICHRA" means an Individual Coverage Health 14
Reimbursement Arrangement (ICHRA) as described in Section 9831(d) 15
of the Internal Revenue Code. 16
(d) "Qualified employer" means an employer that: 17
(i) Has fewer than fifty (50) employees; 18
(ii) Is subject to tax liability under this 19
chapter; and 20
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(iii) Offers an ICHRA in lieu of a traditional 21
employer-provided health insurance plan. 22
(2) (a) For the first taxable year in which a qualified 23
employer offers an ICHRA, the employer may claim a credit of up to 24
Four Hundred Dollars ($400.00) per covered employee against the 25
taxes imposed by this chapter, if the employer's contribution to 26
the ICHRA equals or exceeds either: 27
(i) The level of benefits provided in the prior 28
benefit year; or 29
(ii) The amount contributed per covered individual 30
to the employer's previous health insurance plan during the prior 31
benefit year. 32
(b) For the second taxable year in which a qualified 33
employer continues to offer an ICHRA, the employer may claim a tax 34
credit of up to Two Hundred Dollars ($200.00) per covered employee 35
against the taxes imposed by this chapter. 36
(3) A qualified employer that claims a credit under this 37
section must report to the department every three (3) years after 38
claiming the credit. The report shall include: 39
(a) Whether the employer continued to offer the ICHRA 40
or reverted to a traditional employer-sponsored plan; and 41
(b) Details regarding the level of benefits provided 42
under the ICHRA. 43
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(4) (a) The total amount of tax credits approved under this 44
section shall not exceed One Million Dollars ($1,000,000.00) in 45
any fiscal year. 46
(b) The department shall approve claims for credits in 47
the chronological order of filing until the limit on the amount of 48
credits that may be approved in a fiscal year is reached. 49
(c) A tax credit under this section may not exceed the 50
employer's tax liability under this chapter for the taxable year. 51
Excess credits may be carried forward for ten (10) years from the 52
close of the taxable year in which the credits were earned. 53
(5) (a) A qualified employer must claim the credit on their 54
annual state tax return in the manner prescribed by the 55
department. 56
(b) The employer shall provide all necessary 57
documentation to verify eligibility for the credit. 58
(6) The department shall adopt rules necessary to implement 59
and administer this section. 60
SECTION 2. Section 1 of this act shall be codified as a new 61
section in Chapter 7, Title 27, Mississippi Code of 1972. 62
SECTION 3. Nothing in this act shall affect or defeat any 63
claim, assessment, appeal, suit, right or cause of action for 64
taxes due or accrued under the income tax laws before the date on 65
which this act becomes effective, whether such claims, 66
assessments, appeals, suits or actions have been begun before the 67
date on which this act becomes effective or are begun thereafter; 68
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ST: Income tax; authorize credit for certain
employers providing individual coverage health
reimbursement arrangement (ICHRA) to employees.
and the provisions of the income tax laws are expressly continued 69
in full force, effect and operation for the purpose of the 70
assessment, collection and enrollment of liens for any taxes due 71
or accrued and the execution of any warrant under such laws before 72
the date on which this act becomes effective, and for the 73
imposition of any penalties, forfeitures or claims for failure to 74
comply with such laws. 75
SECTION 4. This act shall take effect and be in force from 76
and after January 1, 2026. 77