Small Business Health Care Tax Credit

The IRS has released guidance on the “small employer” health insurance credit under the health care reform bill.   Starting in 2010, qualifying employers with no more than 25 employees are entitled to up to a 25% tax credit on the cost of the premiums paid to provide 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. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.

Nonprofit Organizations

Section 501(c) employers exempt under section 501(a) with fewer than 25 employees (more if you have part-time employees), and less than $50,000 in average wages may be eligible.

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