SB2868 • 2026

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

AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR CERTAIN SMALL EMPLOYERS OFFERING THEIR EMPLOYEES AN INDIVIDUAL COVERAGE HEALTH REIMBURSEMENT ARRANGEMENT (ICHRA) IN LIEU OF A TRADITIONAL EMPLOYER-PROVIDED HEALTH INSURANCE PLAN; TO PROVIDE THE AMOUNT OF THE CREDIT; TO PROVIDE A REPORTING REQUIREMENT TO THE DEPARTMENT OF REVENUE; AND FOR RELATED PURPOSES.

Labor Taxes

Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor: Boyd
Last action: 2026-03-28
Official status: Dead
Effective date: January 1,

Plain English Breakdown

The official source material does not provide information about employees covered under an ICHRA provided by a small employer.

Income Tax Credit for Small Employers Offering ICHRAs

This bill allows small employers to get a tax credit if they offer Individual Coverage Health Reimbursement Arrangements (ICHRA) instead of traditional health insurance plans.

What This Bill Does

Creates an income tax credit for certain small employers who provide ICHRA to their employees.
Limits the amount of the credit based on the year the employer starts offering ICHRA: $400 per employee in the first year and $200 per employee in subsequent years.
Requires employers claiming the credit to report to the Department of Revenue every three years with details about the ICHRA benefits offered.

Who It Names or Affects

Small employers (fewer than 50 employees) who offer ICHRAs to their employees.

Terms To Know

ICHRA: An Individual Coverage Health Reimbursement Arrangement, which allows employers to reimburse employees for individual health insurance plans.
Qualified Employer: A small employer with fewer than 50 employees that offers an ICHRA and is subject to tax liability under the state's income tax laws.

Limits and Unknowns

The bill died in conference on March 28, 2026, so it did not become law.
It was intended to take effect from January 1, 2026, but this did not happen due to the bill's status.

Bill History

2026-03-28 Mississippi Legislative Bill Status System
03/28 (S) Died In Conference
2026-03-25 Mississippi Legislative Bill Status System
03/25 (H) Conferees Named Lamar,Steverson,Yancey
2026-03-24 Mississippi Legislative Bill Status System
03/24 (S) Conferees Named Harkins,Boyd,Michel
2026-03-19 Mississippi Legislative Bill Status System
03/19 (S) Decline to Concur/Invite Conf
2026-03-18 Mississippi Legislative Bill Status System
03/18 (H) Returned For Concurrence
2026-03-17 Mississippi Legislative Bill Status System
03/17 (H) Passed As Amended
2026-03-17 Mississippi Legislative Bill Status System
03/17 (H) Amended
2026-03-16 Mississippi Legislative Bill Status System
03/16 (H) Title Suff Do Pass As Amended
2026-02-26 Mississippi Legislative Bill Status System
02/26 (H) Referred To Ways and Means
2026-02-26 Mississippi Legislative Bill Status System
02/26 (S) Transmitted To House
2026-02-25 Mississippi Legislative Bill Status System
02/25 (S) Passed
2026-02-25 Mississippi Legislative Bill Status System
02/25 (S) Committee Substitute Adopted
2026-02-24 Mississippi Legislative Bill Status System
02/24 (S) Title Suff Do Pass Comm Sub
2026-01-19 Mississippi Legislative Bill Status System
01/19 (S) Referred To Finance

Official Summary Text

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

Current Bill Text

Read the full stored bill text

S. B. No. 2868 *SS36/R953CS* ~ OFFICIAL ~ R3/5
26/SS36/R953CS
PAGE 1

To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Boyd

COMMITTEE SUBSTITUTE
FOR
SENATE BILL NO. 2868

AN ACT TO PROVIDE AN INCOME TAX CREDIT FOR CERTAIN SMALL 1
EMPLOYERS OFFERING THEIR EMPLOYEES AN INDIVIDUAL COVERAGE HEALTH 2
REIMBURSEMENT ARRANGEMENT (ICHRA) IN LIEU OF A TRADITIONAL 3
EMPLOYER-PROVIDED HEALTH INSURANCE PLAN; TO PROVIDE THE AMOUNT OF 4
THE CREDIT; TO PROVIDE A REPORTING REQUIREMENT TO THE DEPARTMENT 5
OF REVENUE; AND FOR RELATED PURPOSES. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 7
SECTION 1. (1) As used in this section: 8
(a) "Covered employee" means an employee for whom a 9
qualified employer provides a contribution to an ICHRA. 10
(b) "ICHRA" means an individual coverage health 11
reimbursement arrangement (ICHRA), as described in Section 9831(d) 12
of the Internal Revenue Code. 13
(c) "Qualified employer" means an employer that: 14
(i) Has fewer than fifty (50) employees; 15
(ii) Is subject to tax liability under this 16
chapter; and 17
(iii) Offers an ICHRA in lieu of a traditional 18
employer-provided health insurance plan. 19
S. B. No. 2868 *SS36/R953CS* ~ OFFICIAL ~
26/SS36/R953CS
PAGE 2

(2) (a) For the first taxable year in which a qualified 20
employer provides an ICHRA, the employer may claim a credit of up 21
to Four Hundred Dollars ($400.00) per covered employee, if the 22
employer's contribution to the ICHRA equals or exceeds either: 23
(i) The level of benefits provided in the prior 24
benefit year; or 25
(ii) The amount contributed per covered individual 26
to the employer's previous health insurance plan during the prior 27
benefit year. 28
(b) For the second taxable year in which a qualified 29
employer provides an ICHRA, the employer may claim a credit of up 30
to Two Hundred Dollars ($200.00) per covered employee. 31
(3) An employer that claims a credit under this section must 32
report to the department every three (3) years after claiming the 33
credit. The report must include: 34
(a) Whether the employer continued to offer the ICHRA 35
or reverted to a traditional employer-sponsored plan; and 36
(b) Details regarding the level of benefits provided 37
under the ICHRA. 38
(4) (a) The total aggregate amount of credits claimed under 39
this section shall not exceed One Million Dollars ($1,000,000.00) 40
in any calendar year. The department shall approve claims in the 41
chronological order of filing until the cap is reached. 42
(b) A credit under this section may not exceed the 43
employer's tax liability under this chapter for the tax year. 44
S. B. No. 2868 *SS36/R953CS* ~ OFFICIAL ~
26/SS36/R953CS
PAGE 3
ST: Income tax; allow credit to employer
providing individual coverage health
reimbursement arrangement (ICHRA) to employees.
Excess credits may be carried forward up to ten (10) years but may 45
not be carried back or refunded. 46
(5) A qualified employer must claim the credit on its annual 47
state tax return in the manner prescribed by the department. The 48
employer shall provide all necessary documentation to verify 49
eligibility for the credit. 50
(6) The department shall adopt rules necessary to implement 51
and administer this section. 52
SECTION 2. Section 1 of this act shall be codified in 53
Chapter 7, Title 27, Mississippi Code of 1972. 54
SECTION 3. This act shall take effect and be in force from 55
and after January 1, 2026. 56