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AB 915

Relating to: tax credit for small businesses offering individual coverage health reimbursement arrangements. (FE)

2025-2026 Regular Session Introduced by Scott Allen and 8 co-sponsors

Provides a state tax credit to help small businesses fund health coverage for employees via individual coverage HRAs.

Failed to concur in pursuant to Senate Joint Resolution 1
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WeVote Research Nonpartisan
Bill Summary · AB 915

Summary: Assembly Bill 915 (2025 Session) – Tax Credit for Small Businesses Offering Individual Coverage Health Reimbursement Arrangements (HRA)

1) Purpose and Intent

  • AB 915 aims to establish a state-level tax credit to encourage small businesses to provide health coverage to employees through individual coverage Health Reimbursement Arrangements (HRAs).
  • The bill is designed to expand access to health coverage for employees of small businesses by easing the cost burden on employers who sponsor HRAs that use individual market plans.

2) Key Provisions and Changes

  • Tax Credit Authorization:
    • Creates a tax credit for eligible small employers that offer individual coverage HRAs to their employees.
    • The credit is intended to offset a portion of the costs associated with offering these HRAs and maintaining the coverage for employees.
  • Eligibility Criteria:
    • Targeted at small businesses (specific eligibility thresholds and definitions of “small business” would be specified in the bill text).
    • Employers must establish or participate in an HRA that provides access to individual health coverage for employees.
  • Structure of the Credit:
    • Details such as credit amount (dollar value or percentage of qualified costs), maximum credit per employer, and duration (years) are specified in the bill.
    • Potential interactions with other state or federal subsidies or credits are addressed to avoid duplicate benefits.
  • Administration and Compliance:
    • Requirements for documentation, reporting, and verification to claim the credit.
    • Roles for state agencies in processing claims and ensuring compliance.
  • Interaction with Health Policy Goals:
    • While the bill supports expanding coverage via HRAs, some stakeholders express concerns about shifting risk toward workers in the individual market.
    • The fiscal note and policy discussions may reference broader health coverage strategies, such as public options (e.g., BadgerCare), as considerations in the legislative debate.

3) Who Would Be Affected

  • Eligible Small Businesses:
    • Employers that offer or implement individual coverage HRAs for employees.
    • Organizations meeting the defined small business criteria (to be specified in the bill).
  • Employees:
    • Workers whose health coverage is provided through an HRA paired with individual market plans.
  • State Agencies:
    • Revenue and tax administration agencies responsible for administering the new credit, verifying eligibility, and processing claims.

4) Procedural and Timeline Aspects

  • Legislative Path:
    • Introduced January 28, 2026, with initial referral to the Health, Aging and Long-Term Care committee.
    • Passed the Assembly (with amendments) on February 19, 2026 (Ayes 97, Noes 0); then referred to the Senate.
  • Floor Action:
    • The bill progressed through committee hearings and amendments (including Assembly Substitute Amendments) and moved to a third reading before final passage in the Assembly.
  • Current Status (as of the latest record):
    • The Assembly version has been enacted and transmitted for consideration by the Senate (subject to Senate action and potential concurrence or amendments).
  • Sponsorship:
    • Primary sponsors include Representatives Kaufert, Moses, Allen, Behnke, Dittrich, Knodl, Kreibich, Mursau, O’Connor; co-sponsors include Barbara Dittrich and several others. Senators Marklein and Felzkowski are cosponsors.

5) Practical Considerations and Notes

  • Policy Debate:
    • Some stakeholders advocate for broader coverage expansion mechanisms (e.g., public option) as potentially more effective in expanding affordable care.
    • AB 915 focuses specifically on incentivizing small businesses to offer HRAs tied to individual market coverage.
  • Fiscal Impact:
    • The bill would create a recurring or time-limited tax credit expense for the state; the fiscal estimate would detail expected revenue impact and budgetary implications.
  • Next Steps:
    • If enacted, the tax credit program would require implementing regulations and guidance to define eligible costs, verify employee eligibility, and administer the credit.

This summary captures the bill’s aim to promote small-business-based health coverage through HRAs, outlines the anticipated eligibility and credit mechanics, identifies who is affected, and notes the legislative progress and strategic considerations. For precise credit amounts, eligibility thresholds, and administration details, refer to the full text of AB 915 and the accompanying fiscal and policy analyses.

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

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