CT Small Business Healthcare Tax Credits Welcomed by Sen. Cohen

How the ICHRA Tax Credit Works for Small Businesses

Eligible employers can claim the tax credit of up to $1,000 per employee each year for the first two consecutive years they offer an ICHRA through the state’s official health insurance marketplace. State Senator Christine Cohen noted the high costs associated with providing health insurance coverage after operating her own small business for nearly 25 years. These credits aim to ease financial pressures on small business owners while helping more workers secure proper health insurance coverage.

Legislative Actions and Small Business Support

The health insurance tax credit builds on a series of legislative measures championed by Senator Cohen during the 2026 Legislative Session to support Connecticut enterprises. Lawmakers previously established a tax credit allowing qualified small businesses in the manufacturing and technology sectors to claim 6% of research and development expenses. The state also launched a Small Business Concierge Service via the Department of Economic and Community Development to help owners apply for state grants and incentive programs.

Additional state initiatives include an Artificial Intelligence small business program to assist with operational integration, streamlined financial institution regulations, modernized property transfer rules, and tax credits for employers providing commuter benefits.

Frequently Asked Questions

• Who is eligible for the new tax credit? Small businesses in Connecticut with 50 or fewer employees that offer an ICHRA through Access Health CT using the BusinessPlus platform qualify for the credit.
• What is the maximum credit amount? Eligible employers can receive up to $1,000 per employee per year.
• How long can a business claim the credit? The financial incentive is available for the first two consecutive years an employer offers the ICHRA.