33-22-2006. Premium incentive payments, premium assistance payments, and tax credits for small employer health insurance premiums paid -- eligibility for small group coverage -- amounts. (1) An employer is eligible to apply for premium incentive payments and premium assistance payments or a tax credit under this part if the employer and any related employers:
     (a) did not have more than the number of employees established for eligibility by the commissioner at the time of registering for premium incentive payments or premium assistance payments or a tax credit under 33-22-2008;
     (b) provide or will provide a group health plan for the employer's and any related employer's employees;
     (c) do not have delinquent state income tax liability owing to the department of revenue from previous years;
     (d) have been registered as eligible small employer participants by the commissioner as provided in 33-22-2008; and
     (e) do not have any employees, not including an owner, partner, or shareholder of the business, who received more than $75,000 in gross compensation, including bonuses and commissions, from the small employer or related employer in the prior tax year.
     (2) The commissioner shall establish, by rule, the maximum number of employees that may be employed to qualify as a small employer under subsection (1). However, the number may not be less than two employees or more than nine employees. The maximum number may be different for employers seeking premium incentive payments and premium assistance payments than for employers seeking a tax credit. The number must be set to maximize the number of employees receiving coverage under this part. The commissioner may not change the maximum employee number more often than every 6 months. If the maximum number of allowable employees is changed, the change does not disqualify registered employers with respect to the tax year for which the employer has registered.
     (3) Except as provided in subsection (4), an eligible small employer may claim a tax credit in the following amounts:
     (a) (i) not more than $100 each month for each employee and $100 each month for each employee's spouse, if the employer covers the employee's spouse, if the average age of the group is under 45 years of age; or
     (ii) not more than $125 each month for each employee and $100 each month for each employee's spouse, if the employer covers the employee's spouse, if the average age of the group is 45 years of age or older; and
     (b) not more than $40 each month for each dependent, other than the employee's spouse, if the employer is paying for coverage for the dependents, not to exceed two dependents of an employee in addition to the employee's spouse.
     (4) An employer may not claim a tax credit:
     (a) in excess of 50% of the total premiums paid by the employer for the qualifying small group;
     (b) for premiums paid from a medical care savings account provided for in Title 15, chapter 61; or
     (c) for premiums for which a deduction is claimed under 15-30-121 or 15-31-114.
     (5) An employer may not claim a premium incentive payment in excess of 50% of the total premiums paid by the employer for the qualifying small group.

     History: En. Sec. 6, Ch. 595, L. 2005.