Arizona Health Insurance Tax Credit

The Health Insurance Premium Tax Credit was established September 21, 2006 as a tax credit for participating health insurance companies against their health insurance premium tax liability for enrolling individuals or small businesses not previously covered by health insurance.

 

Details of the Health Insurance Premium Tax Credit  Tax Form

  • Amount of the tax credit ($1,000 for single coverage and $3,000 for family coverage or 50% of the annual health insurance premium, whichever is less) is passed on to the individual or small business in the form of reduced premiums.
  • Applicants must obtain health insurance coverage within 90 days from the Certificate of Eligibility issue date or the Certificate will expire and cannot be reissued.
  • Individuals and small businesses can participate in the program for a maximum of three years.  

 Qualifications for Small Business Applicants

  • A small business must have been in existence in Arizona for at least 1 year.
  • The business has not provided health insurance to its employees for at least 6 consecutive months prior to application.
  • The business had at least 2 but no more than 25 employees (total full-time and part-time employees whether eligible for benefits or not) during the most recent calendar year.

 The application for the health insurance tax credit for small businesses can be found on the Arizona Department of Revenue website.

  

 

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