New CT Tax Credit Could Help Small Businesses Cover Health Insurance

A new state tax credit could help Connecticut small businesses provide health insurance to their employees, Gov. Ned Lamont announced Wednesday.

Eligible businesses can receive a tax credit of up to $1,000 per covered employee annually when they offer health benefits through Access Health CT's BusinessPlus platform. The credit is available for the first two consecutive years an employer offers the benefit.

The incentive applies to businesses with fewer than 50 employees in Connecticut that offer an Individual Coverage Health Reimbursement Arrangement, or ICHRA.

Under the arrangement, employers set a monthly contribution amount that eligible employees can use toward purchasing their own health insurance plans through Access Health CT.

The credit is limited to the amount an employer contributes toward coverage or $1,000 per covered employee, whichever is less. It is nonrefundable, and applications are considered on a first-come, first-served basis, subject to a statewide annual cap.

“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,” Lamont said in a statement.

Lamont proposed the incentive earlier this year and was approved by the Connecticut General Assembly during its 2026 legislative session.

Access Health CT CEO James Michel said the credit supports the marketplace's mission to reduce the number of uninsured residents and expand access to financial assistance.

Businesses must offer the arrangement through Access Health CT to qualify for the state credit.

The application form is available on the Connecticut Department of Revenue Services website under Pass-Through Entity Tax Forms.

Businesses can learn more about the tax credit at AccessHealthCT.com/BusinessPlus.