Representative Craig Introduces Legislation to Create Tax Credit for Small Business Employers

COLUMBUS—State Representative Meredith Craig (R-Smithville) recently introduced legislation to provide a nonrefundable tax credit to small business employers who offer Individual Coverage Health Reimbursement Arrangements (ICHRAs) to their employees.

The ICRHA program was created under the Trump administration in 2019 and aims to increase accessibility to healthcare coverage for employees, particularly in small businesses, in response to rising healthcare costs.

“By incentivizing employers to adopt ICHRAs, we can help reduce healthcare costs, enhance employee satisfaction, and ultimately incentivize more health care choice in the economy,” said Craig. 

Under this bill, a $400 tax credit per employee covered will be available to employers who: 

• Have 2-50 employees;
• Offer ICHRAs to all or some of their employees; and
• Contribute at least $400 per employee to the ICHRA in a taxable year.

The legislation awaits a House committee assignment.