20-224.05. Premium tax credit for health insurance certificates submitted by qualified persons; definitions

A. From and after December 31, 2006, an annual tax credit is allowed against the premium tax liability incurred by a health care insurer pursuant to section 20-224, 20-837 or 20-1060 for an individual or a small business that has received a certificate from the department of revenue pursuant to section 43-210 and obtained health insurance from a health care insurer within ninety days after the date the certificate was issued.

B. The maximum amount of tax credits allowed under this section shall not exceed the aggregate amount of certificates approved by the department of revenue pursuant to section 43-210.

C. For coverage issued to an individual, the amount of the credit is the lesser of:

1. One thousand dollars for coverage on a single person, five hundred dollars for coverage on a child or three thousand dollars for family coverage.

2. Fifty per cent of the health insurance premium.

D. For coverage issued to a small business, the amount of the credit is the lesser of:

1. One thousand dollars for coverage on a single person or three thousand dollars for each employee who elects family coverage.

2. Fifty per cent of the health insurance premium.

E. If the allowable tax credit exceeds the state premium tax liability, the amount of the claim not used as an offset against the state premium tax liability may be carried forward as a tax credit against subsequent years' state premium tax liability for a period not to exceed five taxable years or refunded as allowed under section 20-224.02.

F. The department may adopt rules necessary for the administration of this section.

G. A health care insurer allowed a credit against its premium tax liability under this section shall not be required to pay any additional retaliatory tax levied pursuant to section 20-230 as a result of claiming the credit.

H. For the purposes of this section:

1. " Family" means any of the following:

(a) An adult and the adult's spouse.

(b) An adult, the adult's spouse and all unmarried dependent children under nineteen years of age or under twenty-five years of age if a full-time student.

(c) An adult and the adult's unmarried dependent children under nineteen years of age or under twenty-five years of age if a full-time student.

2. " Health care insurer" means a disability insurer, group disability insurer, blanket disability insurer, health care services organization, hospital service corporation, medical service corporation or hospital, medical, dental and optometric service corporation that provides health insurance in this state.

3. " Health insurance" means a licensed health care plan or arrangement that pays for or furnishes medical or health care services and that is issued by a health care insurer. Health insurance does not include limited benefit coverage as defined in section 20-1137.

4. " Small business" means a business that has been in existence for at least one calendar year in this state, that has not provided health insurance to its employees for at least six months and that had between two and twenty-five employees during the most recent calendar year.