Insurers are eligible for one tax incentive under the MRZ program: premium tax credits.
An insurer with a net increase in full-time permanent employees is eligible for premium tax credits. The insurer can receive up to $7,500 over five years per net new non-dislocated employee and up to $10,000 over five years per net new dislocated employee it hires and retains. If the tax credits exceed the premium tax liability, any unused amount may be carried forward for up to five taxable years, provided the insurer remains in the MRZ.
- To apply for the premium tax credits the insurer must first complete an Application Form and enter into a Memorandum of Understanding (MOU) with ACA.
- Then ACA will issue a Letter of Certification to the eligible insurer, explaining the next steps in the process.
- Annually the insurer must complete the Arizona Department of Insurance’s Form MZone and submit it with its Arizona tax return to claim the premium tax credits.
- The insurer must submit an Annual Report to ACA within 30 days of filing its Arizona tax return to maintain its eligibility.