Qualified Health Insurance Expense Credit
On this page find information and instructions for claiming the Qualified Health Insurance Expense Credit.
- Tax Credit Code: 129
Summary
An employer, who employs 50 or fewer persons either directly or whose compensation is reported on Form 1099, is allowed a tax credit for qualified health insurance expenses in the amount of $250.00 for each employee enrolled for twelve consecutive months in a qualified health insurance plan. Qualified health insurance means a high deductible health plan as defined by Section 223 of the Internal Revenue Code. The qualified health insurance must be made available to all employees and compensated individuals of the employer pursuant to the applicable provisions of Section 125 of the Internal Revenue Code. The total amount of the tax credit for a taxable year cannot exceed the employer’s income tax liability. Credits claimed but not used may be carried forward for succeeding years’ tax liability. For taxable years beginning on or after January 1, 2025, any credits generated but not used may be carried forward for three years. The qualified health insurance premium expense must equal at last $250 annually.