Connecticut opens tax credit for small businesses that help pay for workers' health insurance
Gov. Ned Lamont said businesses with 50 or fewer employees can claim up to $1,000 per worker a year if they help pay for workers' own health plans bought through Access Health CT.
Connecticut small businesses can now claim a state tax credit of up to $1,000 per employee a year for helping their workers buy health insurance, Gov. Ned Lamont said.
The credit is open to businesses with 50 or fewer employees that offer an Individual Coverage Health Reimbursement Arrangement, an allowance-based benefit in which the employer sets a monthly contribution and the employee puts that money toward a health plan of their own, according to the governor's office. The arrangement must be offered through Access Health CT, the state's health insurance marketplace, using its BusinessPlus platform, and the credit is available for the first two consecutive years an employer offers one.
Lamont proposed the incentive and the General Assembly approved it during the 2026 regular session, his office said.
"Through this tax credit, we can encourage more small businesses to offer health coverage to their employees, keeping more people in Connecticut insured while also offsetting their premiums," Lamont said in a statement.
Access Health CT Chief Executive James Michel said the credit supports the marketplace's goal of lowering the state's uninsured rate.
The application form is posted on the state Department of Revenue Services website, under pass-through entity tax forms. Access Health CT is the only place employers can obtain the credit, the governor's office said.
This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.