At Remodel Health, we strive to provide you with the most comprehensive and up-to-date information on the ever-changing landscape of health insurance. We believe that understanding the latest legislative changes is essential for you to make informed decisions about your small business and the health benefits you offer your employees. In this blog post, we will break down Indiana’s House Bill 1004 and explain how it impacts you as a consumer.
Indiana’s House Bill 1004: Simplified Explanation
Indiana’s House Bill 1004 is a recent legislative update that introduces a new tax credit opportunity for qualified taxpayers who provide health reimbursement arrangements (HRAs, including ICHRAs) to their employees. Now, let’s dive into the details in simpler terms:
Who does it apply to?
This new law is specifically designed for qualified taxpayers, meaning small businesses with less than fifty employees. If you fall into this category, you have the potential to benefit from the tax credit provided by House Bill 1004.
What is the tax credit?
House Bill 1004 allows qualified taxpayers to claim a tax credit against their state tax liability for qualified contributions made towards HRAs. In the first year, you can claim up to four hundred dollars ($400) per covered employee. This credit is available if the amount you contribute towards the HRA is equal to or greater than either the level of benefits provided in the previous benefit year or the amount contributed per covered individual toward your employer-provided health insurance plan during the previous benefit year. It’s important to note that this $400 tax credit goes to the employer.
What happens in the second year?
In the second year, the tax credit decreases to two hundred dollars ($200) per covered employee. It’s important to note this change so you can plan your benefits strategy accordingly.
Why is this important?
House Bill 1004 aims to encourage small businesses to offer ICHRAs to their employees. By providing this tax credit, the state of Indiana hopes to alleviate some of the financial burden associated with offering quality health benefits.
How can Remodel Health help?
As your trusted health insurance partner, Remodel Health is always at the forefront of industry updates and legislative changes. We stay up-to-date so you don’t have to, ensuring that you have the knowledge and expertise necessary to navigate these changes effectively. Our team of experts is ready to help you understand how House Bill 1004 specifically applies to your business and how you can maximize the benefits it offers.
Indiana’s House Bill 1004 introduces an exciting opportunity for small businesses to claim tax credits for offering ICHRAs to their employees. By taking advantage of this legislation, you can provide valuable health benefits while potentially reducing your tax liability. At Remodel Health, we are here to guide you through these changes and help you make informed decisions that benefit both your business and your employees. Stay tuned for more valuable insights from Remodel Health, your trusted partner in the health insurance industry.