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Bill

HB 565

An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for employer health insurance contribution tax credit; and promulgating regulations.

2025-2026 Regular Session Introduced by Jeff Olsommer and 7 co-sponsors

Creates employer tax credit for health insurance contributions; requires regulatory development but lacks spending limits or eligibility specifics.

Referred to Finance
0
WeVote Research Nonpartisan
Bill Summary · HB 565

Legislative bill overview

HB 565 amends Pennsylvania's Tax Reform Code of 1971 to create a new tax credit for employers who contribute to employee health insurance. The bill authorizes the state to provide this credit and directs the development of regulatory rules to implement it.

Why is this important

This proposal could affect how Pennsylvania incentivizes employer-sponsored health insurance coverage, potentially influencing business decisions about offering benefits and employee access to health plans. The financial impact on the state budget depends on the credit's size and eligibility requirements, which would be determined through future regulations.

Potential points of contention

  • Cost and revenue impact: The bill doesn't specify the credit amount or cap, meaning the fiscal burden on the state is undefined and could be substantial
  • Equity concerns: Critics may question whether subsidizing employer insurance benefits the workers who need coverage most or primarily advantages higher-wage employees at firms offering plans
  • Implementation details: Undefined regulatory requirements create uncertainty about eligibility criteria, claim procedures, and potential for fraud or abuse

Compiled from official sources — confirm details with the bill’s official record.

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