New tax credit available for Indiana small businesses that offer ICHRAs

HB 1004 Sec. 2 makes credit available to participating businesses with 50 or less employees.

(INDIANAPOLIS, IN – Oct. 12, 2023) – Starting January 1, 2024, a new tax credit for small businesses that offer individual coverage health reimbursement arrangements will become available as a part of House Bill 1004.

When an ICHRA is used, employees can shop for the lowest cost plan that best meets their needs, while employers are able to establish a flexible healthcare budget that fits the needs of each member of their team.

CareSource Indiana is one company with plans that are prepared to meet consumers’ demands when the HB 1004 tax credit goes into effect. “The new tax credit will offer Hoosier employers and employees the ability to choose coverage that best fits them,” said Steve Smitherman, president of CareSource Indiana. “CareSource provides resources to make that decision based on an employee’s budget and health needs.”

Any employer of a corporation, a limited liability company, or partnership with 50 or less employees will be eligible for the credit beginning in 2024. The tax credit for employers equals out to $400 per covered employee during the first year the ICHRA is implemented and drops to $200 per covered employee during the following year.

For more information on Marketplace options, visit https://www.caresource.com/plans/marketplace/.