Governor Ned Lamont announced Tuesday that a new state tax credit is now available in Connecticut to help small businesses offer health insurance to their employees and get more individuals and families covered.
Eligible businesses, including 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 state's official health insurance marketplace, using the BusinessPlus platform. The credit is available for the first two consecutive years an employer offers an ICHRA.
The incentive was proposed by 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," 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."
An ICHRA is an allowance-based health benefit that gives employers a flexible and cost-effective way to contribute toward their employees' health insurance. Employers set a monthly contribution amount per employee, and eligible employees can use those funds toward an individual health insurance plan available through Access Health CT.
"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."
Access Health CT is the only place business owners can access the tax credit. The application form can be found on the Connecticut Department of Revenue Services website in the Pass-Through Entity Tax Forms section.
"This new tax credit gives Connecticut small businesses another reason to take a closer look at the health benefits available to them through BusinessPlus," said John Carbone, Access Health CT director of SHOP and product development.