An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for employer health insurance contribution tax credit; and promulgating regulations.

HB 565 creates a new tax credit for Pennsylvania employers who pay for their employees' health insurance. It allows businesses to reduce their state tax bill by up to 100% of their contributions toward employee health insurance premiums, but only the first $500 per employee counts toward the credit. The credit percentage decreases as the number of covered employees increases: 100% for fewer than 50 employees, 75% for 50-99 employees, and 50% for 100+ employees. Employers must submit specific employee and insurance provider details to the Department of Revenue to claim the credit, which cannot be carried over, refunded, or sold.