Pennsylvania 2025-2026 Regular Session

Pennsylvania House Bill HB565

Introduced

2/12/25

Refer

2/12/25

Caption

Providing for employer health insurance contribution tax credit; and promulgating regulations.

Impact

The introduction of HB 565 is expected to have a significant impact on state taxation laws by creating a new tax credit system that could enhance employer participation in health insurance programs. By allowing employers to reduce their taxable income by the amount contributed to an employee's health insurance, this legislation may promote better healthcare coverage among employees, thus potentially improving public health outcomes. The proposed tax credit could also stimulate economic activity by lowering the health insurance burden on small businesses, allowing them to allocate resources to growth and job creation instead.

Summary

House Bill 565 introduces an Employer Health Insurance Contribution Tax Credit intended to incentivize employers in Pennsylvania to contribute to their employees' health insurance premiums. Specifically designed to alleviate some costs associated with health insurance for employees, this bill contains provisions that allow qualified taxpayers to claim a tax credit for contributions made to eligible employee health insurance costs, encouraging more businesses to provide health insurance benefits. The bill outlines specific requirements and defines terms such as 'qualified taxpayer' and 'eligible health insurance costs', which form the basis for eligibility under this tax credit program.

Sentiment

The sentiment surrounding HB 565 appears to be generally positive among proponents who advocate for healthcare expansion and support for businesses. Supporters argue that this bill could help address the rising costs of healthcare and incentivize small to medium-sized businesses to offer health coverage. However, there may be concerns regarding the fiscal implications of the tax credit and its potential impact on overall state revenue, suggesting a divide in opinion depending on the economic priorities of stakeholders involved.

Contention

One potential point of contention discussed in relation to HB 565 is whether the tax credit sufficiently addresses disparities in health insurance access, particularly for low-income workers. Critics may argue that while the bill represents a step in promoting health insurance contributions, it may not reach all employees equally—especially within smaller companies or those with fewer resources. Additionally, there may be questions about the long-term sustainability of funding these tax credits, given the fiscal pressures that state budgets often face.

Latest PA HB565 Activity

View All Events: PA 2025-2026 Regular Session HB565

Companion Bills

No companion bills found.

Previously Filed As

PA HB1958

Providing for employer child care contribution tax credit.

PA HB1745

In personal income tax, further providing for classes of income; and providing for 529 savings account employer matching contribution tax credit and tuition account programs.

PA HB2315

In tax credit and tax benefit administration, further providing for definitions; and providing for promotion of renewable opportunities, supporting people, employment and resilience (PROSPER) tax credit.

PA HB653

In tax credit and tax benefit administration, further providing for definitions; and providing for tax credits for rehabilitation and reconstruction of certain factory and mill buildings and for a business tax credit.

PA HB1219

In personal income tax, further providing for classes of income and for special tax provisions for poverty and providing for alternative special tax provisions for poverty; in corporate net income tax, further providing for definitions, for imposition of tax, for reports and payment of tax, for consolidated reports and for manufacturing innovation and reinvestment deduction; in realty transfer tax, further providing for transfer of tax; in tax credit and tax benefit administration, further providing for definitions; in entertainment production tax credit, further providing for definitions, for credit for qualified film production expenses, for carryover, carryback and assignment of credit and for limitations; in Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for biotechnology; in neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit; providing for expanded neighborhood improvement zones; in Pennsylvania Child and Dependent Care Enhancement Tax Credit Program, further providing for credit for child and dependent care employment-related expenses; providing for Public Transportation Trust Fund; and, in general provisions, further providing for underpayment of estimated tax, for method of filing and for allocation of tax credits.

PA HB1154

In volunteer firefighters, repealing provisions relating to employment sanctions; and providing for volunteer emergency responders employer tax credit.

PA SB1143

In personal income tax, further providing for classes of income; and providing for 529 savings account employer contribution tax credit.

PA HB52

Providing for the Career and Technical Education Investment Incentive Program.

PA SB1181

In neighborhood assistance tax credit, further providing for tax credit and for grant of tax credit.

PA HB1429