2013 Arizona Revised Statutes
Title 43 - Taxation of Income
§ 43-1185 Credit for qualified health insurance plans; definitions

43-1185. Credit for qualified health insurance plans; definitions

(Rpld. 1/1/15)

A. For taxable years beginning from and after December 31, 2011 through December 31, 2014, a credit is allowed against the taxes imposed by this title for an employer that provides a qualified health insurance plan for its employees who are Arizona residents. The amount of the credit is three hundred sixty dollars for every employee who is enrolled in the qualified health insurance plan as prescribed in this section.

B. To qualify for the credit, the employer must:

1. Have not provided health insurance coverage to its employees for the ninety days immediately preceding the offer of the qualified health insurance plan in the taxable year in which the employer initially claims the credit under this section.

2. Offer the qualified health insurance plan to every employee.

3. Pay at least three hundred sixty dollars during the taxable year for health insurance premiums or contributions to a health savings account for every employee who is enrolled in the qualified health insurance plan.

4. Provide the health insurance plan to the enrolled employee for at least twelve consecutive months.

C. If the allowable tax credit exceeds the taxes otherwise due under this title on the claimant's income, or if there are no taxes due under this title, the taxpayer may carry the amount of the claim not used to offset the taxes under this title forward for not more than three consecutive taxable years' income tax liability. The employer may only claim a tax credit under this section for three taxable years, not including any taxable year for which carryforward is claimed under this subsection.

D. Co-owners of a business, including corporate partners in a partnership, may each claim only the pro rata share of the credit allowed under this section based on the ownership interest. The total of the credits allowed all of the owners of the business shall not exceed the amount that would have been allowed for a sole owner of the business.

E. For the purposes of this section:

1. " Employer" means a taxpayer who employs at least two and not more than fifty employees who are residents of this state.

2. " Health savings account" means a health savings account that is established under section 223 of the internal revenue code.

3. " Qualified health insurance plan" means a high deductible plan that includes catastrophic health care coverage and that is established in conjunction with a health savings account.