State experience with tax credits for private health insurance is limited. As of January 2009, 10 states actively offer a tax credit program that generally targets either individuals or small employers. Eligibility rules and tax credit amounts varies significantly between programs. Other types of state tax incentives, such as deductions and tax programs targeting "business enterprise zones" are not represented on this chart.

Data as of January 2009. Data compiled through review of state law and interviews with government regulators.
Data collection and analysis by researchers at the Health Policy Institute, Georgetown University.

A tax credit may be refundable or non-refundable. With a non-refundable tax credit, a tax payer's liability may be reduced down to zero but not below zero. With a refundable tax credit, a tax payer's liability may be reduced below zero, allowing a credit in the form of a payment.

NA: Data are not available.

1. Income between $25,000- $35,000 depending on marital and parental status. Uninsured for one year prior to the year credit is claimed.
2. Credit only available for employers (sized 1-50) that make available a high deductible health plan. Employee must be enrolled in plan for 12 consecutive months.
3. Employer must not have provided insurance for one year prior to claiming the credit. Must offer insurance to eligible employees (those who work at least 30 hours per week) and their dependents.
4. Employer must have established a small employer health benefit plan or made contributions to a health savings account of an eligible employee after December 31, 2004. Employer must not have contributed within the 2 years prior to claiming credit to any health insurance premium or health savings account on behalf of an eligible employer. Eligible employees must work at least 30 hours per week.
5. Employer can claim credit for low-income employees who work at least 30 hours per week or 1,000 hours per year. Employer must provide health insurance for dependents of low-income employees. Employer must meet contribution requirements.
6. Self-employed, who is otherwise not eligible for the federal income tax health insurance deduction under IRS Section 162, shall be entitled to a state tax credit against personal income tax liability.
7. Montana has a second tax incentive program for small employers. Eligibility rules include the small employers must be eligible for the Insure Montana Program, have 2-9 employees, and must not have any employee (excluding the employer) making over $75,000 a year. Employer must currently offer a health plan and contribute 50% of premiums to that plan. Participation is limited. The amount of the tax credit is $100/month. The credit cannot exceed 50% of the premiums paid. The duration the credit can be claimed is refundable and unlimited, subject to funding.
8. Small employers that 1) in business in Montana for 12 months 2) employ 20 or fewer employees 3) pays 50% or more of each employees insurance premium. Plan must cover employees, spouses and dependents. Credit is available for qualifying premiums paid by the eligible employer for coverage of eligible employees, their spouse and dependents.
9. Employer must provide health benefits for all of its eligible employees and contribute at least 50% of the costs. Eligible employees are those whose total wages do not exceed $40,000 on an annual basis.
10. Eligible employers (corporations, partnerships or proprietorships) that (a)have done business in the state for at least one year; (b) have not, within the 15 preceding months of offering to purchase the state-certified plan, provided group health insurance to at least 75% of its employees who are residents of the state and work an average of 24 hours or more a week for the employer; (c) offer the state-certified basic health benefits plan to all eligible employees; and (d) pay 50% or more of the full cost of the premium attributable to the employee for which the credit is claimed. The credit does not apply to establishments receiving an incentive payment under the Oklahoma Quality Jobs Program. An eligible employee is an employee, proprietor, or partner of the employer claiming the credit who (a) is a state resident, (b) works an average of 24 hours a week or more for the employer, and (c) was not covered by a group health insurance policy or plan offered by the same employer within the 15 months preceding the offer to purchase a state-certified basic health benefits plan.
11. The credit is available to an individual, who held a health insurance policy from an insurance company that has withdrawn from writing health insurance policies in South Carolina and the individual, in replacing the insurance policy with one having substantially the same coverage, was assigned to the South Carolina Health Insurance Pool, with a higher premium.