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AB915: Bill Text
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2025 - 2026 LEGISLATURE
LRB-6066/1
EKL:wlj
2025 ASSEMBLY BILL 915
January 28, 2026 - Introduced by Representatives
Kaufert
,
Moses
,
Allen
,
Behnke
,
Dittrich
,
Knodl
,
Kreibich
,
Mursau
and
O'Connor
, cosponsored by Senators
Marklein
and
Felzkowski
. Referred to Committee on Health, Aging and Long-Term Care.
AB915,1,5
1
An Act
to amend
71.05 (6) (a) 15., 71.21 (4) (a), 71.26 (2) (a) 4., 71.34 (1k) (g)
2
and 71.45 (2) (a) 10.;
to create
71.07 (4y), 71.10 (4) (em), 71.28 (4y), 71.30 (3)
3
(am), 71.47 (4y) and 71.49 (1) (am) of the statutes;
relating to:
tax credit for
4
small businesses offering individual coverage health reimbursement
5
arrangements.
Analysis by the Legislative Reference Bureau
This bill creates an income and franchise tax credit for small businesses that provide individual coverage health reimbursement arrangements (HRAs) to their employees. To be eligible for the credit, a small business must have fewer than 50 employees and contribute, during the taxable year, at least $400 per employee covered by the individual coverage HRA. The credit equals $400 per covered employee.
The bill requires the individual coverage HRA to meet conditions imposed under federal law. Under federal law, an individual coverage HRA is a tax-advantaged, employer-provided health benefit through which the employer reimburses covered employees for insurance premiums and other medical expenses, up to the amount determined by the employer. Federal law imposes various requirements, including that covered employees, and dependents if applicable, be enrolled in individual (nongroup) health insurance coverage or Medicare and that employees be given the opportunity to opt out of the individual coverage HRA. The individual coverage HRA is one type of HRA recognized under federal law.
For further information see the state fiscal estimate, which will be printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
AB915,1
1
Section
1
.
71.05 (6) (a) 15. of the statutes, as affected by
2025 Wisconsin Act
2
1
5, is amended to read:
AB915,2,8
3
71.05
(6)
(a) 15. The amount of the credits computed under s. 71.07 (2dm),
4
(2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
(4y),
(5f),
5
(5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a
6
partnership, limited liability company, or tax-option corporation that has added
7
that amount to the partnership’s, company’s, or tax-option corporation’s income
8
under s. 71.21 (4) or 71.34 (1k) (g).
AB915,2
9
Section
2
.
71.07 (4y) of the statutes is created to read:
AB915,2,11
10
71.07
(4y)
Individual coverage health reimbursement arrangement
11
credit
. (a)
Definitions
. In this subsection:
AB915,2,13
12
1. “Claimant” means a qualifying small business that files a claim under this
13
subsection.
AB915,2,17
14
2. “Covered employee” means an individual who is employed in this state by a
15
qualifying small business and who accepts the individual coverage health
16
reimbursement arrangement offered by the qualifying small business for the plan
17
year that begins in the taxable year.
AB915,3,2
18
3. “Individual coverage health reimbursement arrangement” means a health
1
reimbursement arrangement that satisfies the conditions of
26 CFR 54.9802-
4,
29
2
CFR 2590.702-
2, and
45 CFR 146.12
3.
AB915,3,5
3
4. “Qualifying small business” means an employer that employs at least one
4
and no more than 50 employees during the taxable year and that offers an
5
individual coverage health reimbursement arrangement to employees.
AB915,3,9
6
(b)
Filing claims
. For taxable years beginning after December 31, 2025, and
7
subject to the limitations provided in this subsection, a claimant may claim as a
8
credit against the tax imposed under s. 71.02, up to the amount of the tax, an
9
amount equal to $400 per covered employee.
AB915,3,12
10
(c)
Limitations
and conditions
. 1. No credit is allowed under par. (b) unless
11
the claimant contributes, during the taxable year, at least $400 per covered
12
employee to an individual coverage health reimbursement arrangement.
AB915,3,19
13
2. Partnerships, limited liability companies, and tax-option corporations may
14
not claim the credit under par. (b), but the eligibility for, and the amount of, the
15
credit are based on their payment of the contributions in subd. 1. A partnership,
16
limited liability company, or tax-option corporation shall compute the amount of
17
credit that each of its partners, members, or shareholders may claim and shall
18
provide that information to each of them. The partners, members, and
19
shareholders may claim the credit in proportion to their ownership interests.
AB915,3,21
20
(d)
Administration.
Section 71.28 (4) (g) and (h), as it applies to the credit
21
under s. 71.28 (4), applies to the credit under this subsection.
AB915,3
22
Section
3
.
71.10 (4) (em) of the statutes is created to read:
AB915,3,24
23
71.10
(4)
(em) Individual coverage health reimbursement arrangement credit
24
under s. 71.07 (4y).
AB915,4
1
Section
4
.
71.21 (4) (a) of the statutes, as affected by
2025 Wisconsin Act 1
5,
2
is amended to read:
AB915,4,6
3
71.21
(4)
(a) The amount of the credits computed by a partnership under s.
4
71.07 (2dm), (2dx), (2dy), (3g), (3h), (3n), (3q), (3s), (3t), (3w), (3wm), (3y), (4k), (4n),
5
(4y),
(5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and passed through to
6
partners shall be added to the partnership’s income.
AB915,5
7
Section
5
.
71.26 (2) (a) 4. of the statutes, as affected by
2025 Wisconsin Act
8
15
, is amended to read:
AB915,4,14
9
71.26
(2)
(a) 4. Plus the amount of the credit computed under s. 71.28 (1dm),
10
(1dx), (1dy), (3g), (3h), (3n), (3q), (3t), (3w), (3wm), (3y),
(4y),
(5f), (5g), (5h), (5i), (5j),
11
(5k), (5r), (5rm), (6n), and (10) and not passed through by a partnership, limited
12
liability company, or tax-option corporation that has added that amount to the
13
partnership’s, limited liability company’s, or tax-option corporation’s income under
14
s. 71.21 (4) or 71.34 (1k) (g).
AB915,6
15
Section
6
.
71.28 (4y) of the statutes is created to read:
AB915,4,17
16
71.28
(4y)
Individual coverage health reimbursement arrangement
17
credit
. (a)
Definitions
. In this subsection:
AB915,4,19
18
1. “Claimant” means a qualifying small business that files a claim under this
19
subsection.
AB915,4,23
20
2. “Covered employee” means an individual who is employed in this state by a
21
qualifying small business and who accepts the individual coverage health
22
reimbursement arrangement offered by the qualifying small business for the plan
23
year that begins in the taxable year.
AB915,5,2
24
3. “Individual coverage health reimbursement arrangement” means a health
1
reimbursement arrangement that satisfies the conditions of
26 CFR 54.9802-
4,
29
2
CFR 2590.702-
2, and
45 CFR 146.12
3.
AB915,5,5
3
4. “Qualifying small business” means an employer that employs at least one
4
and no more than 50 employees during the taxable year and that offers an
5
individual coverage health reimbursement arrangement to employees.
AB915,5,9
6
(b)
Filing claims
. For taxable years beginning after December 31, 2025, and
7
subject to the limitations provided in this subsection, a claimant may claim as a
8
credit against the tax imposed under s. 71.23, up to the amount of the tax, an
9
amount equal to $400 per covered employee.
AB915,5,12
10
(c)
Limitations
and conditions
. 1. No credit is allowed under par. (b) unless
11
the claimant contributes, during the taxable year, at least $400 per covered
12
employee to an individual coverage health reimbursement arrangement.
AB915,5,19
13
2. Partnerships, limited liability companies, and tax-option corporations may
14
not claim the credit under par. (b), but the eligibility for, and the amount of, the
15
credit are based on their payment of the contributions in subd. 1. A partnership,
16
limited liability company, or tax-option corporation shall compute the amount of
17
credit that each of its partners, members, or shareholders may claim and shall
18
provide that information to each of them. The partners, members, and
19
shareholders may claim the credit in proportion to their ownership interests.
AB915,5,21
20
(d)
Administration.
Subsection (4) (g) and (h), as it applies to the credit under
21
sub. (4), applies to the credit under this subsection.
AB915,7
22
Section
7
.
71.30 (3) (am) of the statutes is created to read:
AB915,5,24
23
71.30
(3)
(am) Individual coverage health reimbursement arrangement credit
24
under s. 71.28 (4y).
AB915,8
1
Section
8
.
71.34 (1k) (g) of the statutes, as affected by
2025 Wisconsin Act
2
1
5, is amended to read:
AB915,6,6
3
71.34
(1k)
(g) An addition shall be made for credits computed by a tax-option
4
corporation under s. 71.28 (1dm), (1dx), (1dy), (3), (3g), (3h), (3n), (3q), (3t), (3w),
5
(3wm), (3y), (4),
(4y),
(5), (5f), (5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and
6
passed through to shareholders.
AB915,9
7
Section
9
.
71.45 (2) (a) 10. of the statutes, as affected by
2025 Wisconsin Act
8
15
, is amended to read:
AB915,6,15
9
71.45
(2)
(a) 10. By adding to federal taxable income the amount of credit
10
computed under s. 71.47 (1dm) to (1dy), (3g), (3h), (3n), (3q), (3w), (3y),
(4y),
(5f),
11
(5g), (5h), (5i), (5j), (5k), (5r), (5rm), (6n), and (10) and not passed through by a
12
partnership, limited liability company, or tax-option corporation that has added
13
that amount to the partnership’s, limited liability company’s, or tax-option
14
corporation’s income under s. 71.21 (4) or 71.34 (1k) (g) and the amount of credit
15
computed under s. 71.47 (3), (3t), (4), (4m), and (5).
AB915,10
16
Section
10
.
71.47 (4y) of the statutes is created to read:
AB915,6,18
17
71.47
(4y)
Individual coverage health reimbursement arrangement
18
credit
. (a)
Definitions
. In this subsection:
AB915,6,20
19
1. “Claimant” means a qualifying small business that files a claim under this
20
subsection.
AB915,6,24
21
2. “Covered employee” means an individual who is employed in this state by a
22
qualifying small business and who accepts the individual coverage health
23
reimbursement arrangement offered by the qualifying small business for the plan
24
year that begins in the taxable year.
AB915,7,3
1
3. “Individual coverage health reimbursement arrangement” means a health
2
reimbursement arrangement that satisfies the conditions of
26 CFR 54.9802-
4,
29
3
CFR 2590.702-
2, and
45 CFR 146.12
3.
AB915,7,6
4
4. “Qualifying small business” means an employer that employs at least one
5
and no more than 50 employees during the taxable year and that offers an
6
individual coverage health reimbursement arrangement to employees.
AB915,7,10
7
(b)
Filing claims
. For taxable years beginning after December 31, 2025, and
8
subject to the limitations provided in this subsection, a claimant may claim as a
9
credit against the tax imposed under s. 71.43, up to the amount of the tax, an
10
amount equal to $400 per covered employee.
AB915,7,13
11
(c)
Limitations
and conditions
. 1. No credit is allowed under par. (b) unless
12
the claimant contributes, during the taxable year, at least $400 per covered
13
employee to an individual coverage health reimbursement arrangement.
AB915,7,20
14
2. Partnerships, limited liability companies, and tax-option corporations may
15
not claim the credit under par. (b), but the eligibility for, and the amount of, the
16
credit are based on their payment of the contributions in subd. 1. A partnership,
17
limited liability company, or tax-option corporation shall compute the amount of
18
credit that each of its partners, members, or shareholders may claim and shall
19
provide that information to each of them. The partners, members, and
20
shareholders may claim the credit in proportion to their ownership interests.
AB915,7,22
21
(d)
Administration.
Section 71.28 (4) (g) and (h), as it applies to the credit
22
under s. 71.28 (4), applies to the credit under this subsection.
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