Small Business Tax Credit
Small employers who offer health insurance can qualify for tax credits.
Federal health care reform provisions make available tax credits for some small employers who offer health insurance to their employees.
The purpose of the tax credit is to encourage employers - particularly those of lower wage-earners - to begin offering health coverage or to maintain their current plans. To be eligible for the tax credit, an employer generally must contribute 50 percent or more of premium for employees. Eligible employers may receive 35 percent of employer health coverage expenses (25 percent for non-profit organizations) and increases after 2014.
For more information on the small employer tax credit, visit the IRS small business tax credit tool, which provides a simple tool to help you find out if you qualify for the tax credit.