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HB 133

Authorize tax credit - small employers with health reimbursement

136th Legislature (2025-2026) Introduced by Sean Brennan and 9 co-sponsors

Ohio bill creates tax credits for small employers offering health reimbursement arrangements to workers, aiming to expand employer-sponsored health coverage access.

Referred to committee
#commerce #insurance #taxation
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WeVote Research Nonpartisan
Bill Summary · HB 133

Legislative bill overview

HB 133 authorizes a state tax credit for small employers that establish or maintain health reimbursement arrangements (HRAs) for their employees. The credit appears designed to incentivize small businesses to offer health benefits by reducing their tax liability based on their HRA expenditures or participation levels.

Why is this important

Small businesses often struggle to afford comprehensive health insurance for employees, affecting worker recruitment and retention. A tax credit could make health benefits more financially feasible for small employers while potentially expanding health coverage access to workers at smaller firms who might otherwise lack employer-sponsored benefits.

Potential points of contention

  • Fiscal cost and targeting: The bill's actual revenue impact depends on credit parameters (percentage, caps, income thresholds) not detailed in the title, raising questions about whether it effectively targets intended beneficiaries or becomes broadly available
  • HRA design concerns: HRAs vary significantly in generosity and functionality; credits might subsidize arrangements that provide minimal meaningful coverage while still reducing state tax revenue
  • Equity questions: Tax credits benefit profitable businesses able to use them; nonprofits and struggling firms may see limited advantage, potentially widening benefits disparity across business types

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

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