The small business health care tax credit was included in the Affordable Care Act enacted in 2010. Under the ACA, eligible small employers can claim the credit for 2010 through 2013 and for two additional years beginning in 2014. For 2010 through 2013, the maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent of premiums paid by eligible tax-exempt organizations. In 2014, the maximum credit rate rises to 50 percent for small businesses and 35 percent for tax-exempt organizations.
Small employers that pay at least 50% of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for this credit.
To learn more about the Small Business Health Care Tax Credit and view tips about other ACA topics, visit the Health Care Tax Tip page . Newly added tips include:
- Small Business Health Care Tax Credit ─ Employers can find out if they qualify and how much they can get.
- What You Need to Know about the Amount of Health Insurance Reported on Form W-2
Learn more about the IRS Small Business Tax Credit, visit the IRS Health Care Tax Tip page.