Relating to: tax credit for small businesses offering individual coverage health reimbursement arrangements. (FE)

SB 896 creates a state tax credit for small Wisconsin businesses that offer individual coverage health reimbursement arrangements (ICHRAs) to employees. The credit provides up to $400 per covered employee annually for businesses with 1-50 employees, provided they contribute at least $400 per employee toward the ICHRA. To qualify, the ICHRA must meet federal requirements for health reimbursement arrangements. The credit reduces the business’s state income tax liability and applies to taxable years beginning after December 31, 2025. This directly affects small employers and their employees who accept the ICHRA as part of their health coverage.