HB 2550 — An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, providing for Small Business Health Care Premiums Contribution Tax Credit.

PRIOR PRINTER'S NO.NOS.

34033403, 3516 PRINTER'S NO.

35163574 THE GENERAL ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

2550 2026 INTRODUCED BY MAZZOCCO, VENKAT, SAMUELSON, McNEILL, CEPEDA- RIVERA, BOROWSKI, TIBURCIO, HOWARD, PASHINSKI, SANCHEZ, CURRY AND MAYES, MAY 13, 2026 AS AS AMENDED, JUNE 3,9, 2026ON2026ECOND FINANCE,CONSIDERATION, HOUSE OF REPRESENTATIVES, AN ACT Amending the act of March 4, 1971 (P.L.6, No.2), entitled "An act relating to tax reform and State taxation by codifying and enumerating certain subjects of taxation and imposing taxes thereon;

"Exchange<-- Authority."WHO TheHAS PennsylvaniaPROVIDED HealthDOCUMENTARY InsuranceEVIDENCE ExchangeOF AuthorityTHE establishedFOLLOWING underWITH 40THE Pa.C.S.<-- EXCHANGE AUTHORITY:

§(1) 9302(a)RESIDENCY (relatingIN toTHIS theCOMMONWEALTH. Pennsylvania Health Insurance Exchange Authority).

(2) CITIZENSHIP, LAWFUL PRESENCE IN THE UNITED STATES OR OTHER QUALIFICATIONS TO PURCHASE A HEALTH REIMBURSEMENT ARRANGEMENT AS PROVIDED BY FEDERAL LAW.

"Exchange Authority." The Pennsylvania Health Insurance 20260HB2550PN3574 - 2 - Exchange Authority THAT IS established under 40 Pa.C.S.

§ <-- 9302(a) (relating to the Pennsylvania Health Insurance Exchange Authority) AND THAT HAS ESTABLISHED AN OFFICE OF FRAUD <-- PREVENTION TO ADDRESS SUSPECTED FRAUD AND TO PREVENT FRAUD.

20260HB2550PN3516 - 2 - "Health reimbursement arrangement." A tax-advantaged arrangement that reimburses individuals for eligible health insurance costs.

91 (relating to preliminary provisions) and 93 (relating to State-based exchange) ORor ANYany OTHERother HEALTHhealth CAREcare COVERAGEcoverage PURCHASEDpurchased THROUGHthrough <--the THEExchange EXCHANGEAuthority. AUTHORITY.

"Qualified small employer health reimbursement arrangement." A type of health reimbursement arrangement for small business, 20260HB2550PN3574 - 3 - as the term is defined in 26 U.S.C.

"Qualified taxpayer." An individual, partnership, association,association corporation, governmental body or unit or agency or <-- other entity that:

20260HB2550PN3516 - 3 - (1) is subject to the tax imposed under Article III;

(2) The names, addresses and employer identification 20260HB2550PN3574 - 4 - numbers of the health insurance providers that provided health insurance services to each participating employee.

(c) Amount of tax credit.--The amount of the tax credit 20260HB2550PN3516 - 4 - under subsection (a) shall be equal to 100% of the aggregate contribution.

or in any other manner <-- designated by the qualified taxpayer in accordance with its governance documents and without regard to how distributive income, losses or credits are allocated for other tax purposes.

20260HB2550PN3574 - 5 - The shareholder, member or partner of the pass-through entity may not carry forward, carry back, obtain a refund of or sell or assign the tax credit.

20260HB2550PN3516 - 5 - Section 1906-L.

The(A) APPLICATION TO ARTICLE XVII-A.1.--The provisions of <-- Article XVII-A.1 apply to the application of this article.

(B) REPORT.--THE REPORT FOR THE TAX CREDIT UNDER THIS <-- ARTICLE REQUIRED UNDER SECTION 1707-A.1 SHALL INCLUDE THE FOLLOWING INFORMATION FROM THE EXCHANGE AUTHORITY:

(1) ALL OF THE FOLLOWING DATA RELATING TO SUSPECTED FRAUD:

(I) THE NUMBER OF SUSPECTED FRAUD REPORTS RECEIVED AND THE DOLLAR AMOUNT DURING THE PRIOR CALENDAR YEAR.

(II) THE NUMBER OF FRAUD REPORTS CONFIRMED AND THE DOLLAR AMOUNT DURING THE PRIOR CALENDAR YEAR.

(III) THE DOLLAR AMOUNT OF ADVANCE PREMIUM TAX CREDITS PROVIDED TO RESCINDED POLICIES DURING THE PRIOR 20260HB2550PN3574 - 6 - CALENDAR YEAR.

(2) A COPY OF A STANDARDIZED FORM FOR INSURERS TO REPORT SUSPECTED FRAUD RELATING TO THE EXCHANGE AUTHORITY AND A POLICY ADOPTED BY THE EXCHANGE AUTHORITY TO RESPOND TO INSURER RECESSION REQUESTS WITHIN ONE BUSINESS DAY AND TO MAKE A FINAL RECESSION DETERMINATION ON SUSPECTED FRAUD WITHIN FIVE BUSINESS DAYS.

(3) A COPY OF A WRITTEN POLICY ADOPTED BY THE EXCHANGE AUTHORITY ON PROCEDURES TO REPORT AND RESOLVE ALLEGATIONS OF FRAUD, INCLUDING THE REQUIRED REFERRAL OF SUSPECTED FRAUD TO THE APPROPRIATE LAW ENFORCEMENT AGENCIES, INCLUDING THE OFFICE OF ATTORNEY GENERAL, THE UNITED STATES DEPARTMENT OF JUSTICE AND THE INTERNAL REVENUE SERVICE, AND CERTIFICATION THAT ALL EMPLOYEES OF THE EXCHANGE AUTHORITY HAVE RECEIVED ANTIFRAUD TRAINING DURING THE PRIOR YEAR.

(4) ANY PROCEDURES THAT HAVE BEEN IMPLEMENTED TO ADDRESS SUSPECTED FRAUD AND FRAUD PREVENTION DURING THE PRIOR CALENDAR YEAR.

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