The IRS has just released guidance on the “small employer” health insurance credit under the new health care reform bill.

Starting this year, qualifying employers with no more than 25 employees are entitled to up to a 35% tax credit on the cost of providing health insurance for employees.

The credit is available to qualifying small employers that pay at least half the cost of single coverage for their employees in 2010.

The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.

The IRS also began mailing postcards this week to more than four million small businesses and tax-exempt organizations to make them aware of the benefits of the recently enacted credit.

You can find out more about the credit at http://www.irs.gov/newsroom/article/0,,id=220809,00.html?portlet=6