1. (a) Subject to subsection (c) and section 7 of this chapter, a qualified taxpayer may claim a credit against the qualified taxpayer's state tax liability for a qualified contribution for a qualified taxpayer with less than fifty (50) employees, if the amount provided toward the health reimbursement arrangement is equal to or greater than the level of benefits provided in the previous benefit year, or if the amount the employer contributes toward the health reimbursement arrangement equals the same amount contributed per covered individual toward the employer provided health insurance plan during the previous benefit year.

2. (b) The amount of the credit is the lesser of:

   1. (1) the amount contributed by the employer toward the health reimbursement arrangement during the taxable year; or

   2. (2) the following:

      1. (A) For the taxable year in which the employer establishes the health reimbursement arrangement, four hundred dollars ($400).
      2. (B) For the taxable year that immediately follows the taxable year in which the employer establishes the health reimbursement arrangement, two hundred dollars ($200).
      3. (C) For a taxable year following a taxable year described in clause (B), zero dollars ($0).
3. (c) A qualified taxpayer may not claim a credit under this chapter for a health reimbursement arrangement established in a taxable year beginning before January 1, 2024.

As added by P.L.203-2023, SEC.2. Amended by P.L.157-2026, SEC.102.