A new proposal in the Illinois Senate aims to support small businesses by introducing a tax credit for employers who offer Health Reimbursement Arrangements (HRAs) to their employees. The measure, known as Senate Bill 3619, was filed by Senator Chris Balkema and is backed by the Small Business Advocacy Council.
If passed, the legislation would create a tax credit specifically for small businesses that provide HRAs. These arrangements allow employers to reimburse employees for qualified health care expenses and, in some cases, individual health insurance premiums. Proponents argue that this approach offers small employers an additional flexible and cost-effective way to offer benefits, which can help them attract and retain workers.
Senate Republicans emphasized the importance of expanding benefit options for job creators dealing with increasing costs. “While HRAs may not be the right fit for every business, Senate Republicans say expanding access to benefit options is critical for job creators facing rising costs. SB 3619 is designed to ease the financial burden of providing health benefits and ensure small businesses have more tools to compete, grow, and support their employees.”
The bill was assigned to the Senate Revenue Committee on Tuesday.
Rezin, a Republican who was elected to represent Illinois’s 38th Senate District in 2010 after replacing Gary G. Dahl, continues her legislative work in the state senate.
