Governor Ned Lamont announced a new state tax credit available to Connecticut small businesses that offer employees health insurance, aiming to increase coverage among individuals and families statewide.
Eligible businesses with 50 or fewer employees can receive up to $1,000 per employee annually when they offer an Individual Coverage Health Reimbursement Arrangement (ICHRA) through Access Health CT's BusinessPlus platform, available for the first two consecutive years an employer offers an ICHRA. Lamont proposed the incentive earlier this year, and the Connecticut General Assembly approved it during the 2026 regular legislative session.
Lamont said, "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. 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 allows employers to set a monthly contribution amount per employee, which eligible employees can then use toward an individual health insurance plan available through Access Health CT, the state's official health insurance marketplace and the only place business owners can access the credit.
"Our mission is to reduce the uninsured rate in Connecticut, which also means increasing access to health insurance and financial help," said Access Health CT CEO James Michel. "This tax credit helps us fulfill that mission."
Connecticut Department of Revenue Services Commissioner Mark D. Boughton said, "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."
"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. "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."
