GOVERNOR LAMONT ANNOUNCES NEW STATE TAX CREDIT TO HELP SMALL BUSINESSES OFFER HEALTH INSURANCE

The following information was released by the office of the Governor of Connecticut:

Governor Ned Lamont today announced that a new state tax credit is now available in Connecticut to help small businesses offer health insurance to their employees, and in turn get more individuals and families covered.

Eligible businesses, which include those with 50 or fewer employees, can receive a tax credit of up to $1,000 per employee per year when they offer an Individual Coverage Health Reimbursement Arrangement (ICHRA) through Access Health CT, the states official health insurance marketplace, using the BusinessPlus platform. The credit is available for the first two consecutive years an employer offers an ICHRA.

This incentive was proposed by Governor Lamont earlier this year and approved by the Connecticut General Assembly during the 2026 regular legislative session.

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, Governor Lamont said. This approach enables workers to choose the plan that best fits their needs, lower their costs, and create more predictability for small businesses. Creating this initiative is another way that we are working to move Connecticut forward on health care affordability in a way that is realistic, responsible, and focused on the everyday experiences of individuals and families who are trying to get coverage and stay covered.

Our mission is to reduce the uninsured rate in Connecticut, which also means increasing access to health insurance and financial help, Access Health CT CEO James Michel said. This tax credit helps us fulfill that mission. We thank Governor Ned Lamont and the legislature for making this financial help possible.

An ICHRA is an allowance-based health benefit that gives employers a flexible and cost-effective way to contribute toward their employees health insurance.

How it works:

Employers set a monthly contribution amount per employee.

Eligible employees can then use those funds toward an individual health insurance plan available through Access Health CT.

Our collaboration with Access Health CT reflects a shared commitment to working together, leveraging our collective expertise and resources and finding solutions to achieve the best possible results for the people we serve, Connecticut Department of Revenue Services Commissioner Mark D. Boughton said. We are proud of this partnership and look forward to building on our success together.

Access Health CT is the only place business owners can access the tax credit.

This new tax credit gives Connecticut small businesses another reason to take a closer look at the health benefits available to them through BusinessPlus, Access Health CT Director of SHOP and Product Development John Carbone said. Our team is here to help employers understand ICHRA, learn more about the tax credit and explore whether it could make sense for their business and employees.

The form for small businesses to apply for the ICHRA tax credit can be found on the Connecticut Department of Revenue Services website in the Pass-Through Entity Tax Forms section.

Employers wishing to learn more about the tax credit should visit AccessHealthCT.com/BusinessPlus. They can also call Access Health CTs Business Plus office at 1-860-241-8445 for assistance. Customers who are deaf or hearing impaired may use TTY at 1-855-789-2428 or call with a relay operator.

There is also a robust broker network across Connecticut. Customers can search the Certified Broker directory on AccessHealthCT.com to find one in their area.