Sec. 1. 36 MRSA §5217-C is enacted to read:

§5217-C.__Employer-paid health insurance credit

1.__Credit.__A taxpayer constituting an employing unit is allowed a credit against the tax imposed by this Part in the amount determined under subsection 2.

2.__Amount of credit.__The credit allowed by this section is equal to 25% of the cost incurred by the taxpayer in providing health insurance for full-time employees of the business and the dependents of those employees.

3.__Eligible taxpayers.__A taxpayer is eligible for a credit under this section if the taxpayer employs fewer than 50 employees and provides health insurance benefits for all of its full-time employees.

4.__Limitation.__The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of tax otherwise due under this Part.__Any unused credit may be carried over to the following year or years for a total period not to exceed 15 years.

SUMMARY

This bill provides an income tax credit for businesses that provide health insurance benefits for full-time employees and that have fewer than 50 employees.