Income tax; allow credit to employer providing individual coverage health reimbursement arrangement (ICHRA) to employees.

SB 2868 provides a Mississippi income tax credit for small employers (fewer than 50 employees) that replace traditional health insurance with an Individual Coverage Health Reimbursement Arrangement (ICHRA). Employers can claim up to $400 per covered employee in their first year of offering an ICHRA (matching prior benefit levels) and $200 in the second year. The credit is limited to $10 million total annually, requires employers to report ICHRA details every three years, and must be claimed on state tax returns with documentation. The bill takes effect January 1, 2026, and applies only to employers meeting specific eligibility criteria.