Assembly Bill 915 proposes the establishment of an income and franchise tax credit for small businesses that offer individual coverage health reimbursement arrangements (HRAs) to their employees. To qualify for this credit, a small business must employ fewer than 50 individuals and contribute at least $400 per covered employee to the HRA during the taxable year. The credit is set at $400 for each covered employee, and the HRAs must comply with federal regulations, which include requirements for employee enrollment in individual health insurance or Medicare and the option for employees to opt out of the HRA.

The bill includes several amendments and new provisions to existing statutes, specifically creating sections related to the individual coverage HRA credit and detailing the definitions, filing claims, limitations, and administration of the credit. Notably, it specifies that partnerships, limited liability companies, and tax-option corporations are ineligible to claim the credit directly, although they can compute and provide the necessary information for their partners or shareholders to claim it based on their ownership interests. The bill aims to incentivize small businesses to provide health benefits, thereby enhancing employee access to healthcare coverage.