Q.- We offer an HRA plan. Someone who is eligible for premium assistance under the American Rescue Plan Act is covered under our HRA. What amount of premium can we claim as a tax credit?
A.- The tax credit that may be claimed for providing subsidized coverage to an assistance-eligible individual participating in an HRA is 102% of the amount actually reimbursed to the participant. It is not the amount the individual would have otherwise paid for HRA coverage.