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Health Care Reform Updates

Small Business Health Care Tax Credit Available for Tax Year 2017

Posted on March 02 2018 03:01 PM

Overview of Eligibility Requirements for Small Employers

New and existing small employers should look into whether the Small Business Health Care Tax Credit can help them provide insurance to their employees. The credit can be worth up to 50% of the amount a small business contributes toward employees' premiums.

The credit benefits employers that:

  • Have fewer than 25 full-time equivalent employees;
  • Pay at least half of their employees' premiums for single health care coverage;
  • Pay average wages of less than $53,000 a year per full-time equivalent (for tax year 2017, and adjusted for inflation in future years); and
  • Offer a qualified health plan through a Small Business Health Options Program (SHOP) Marketplace (or qualify for a limited exception to this requirement).

A Small Business Health Care Tax Credit Estimator is available from Healthcare.gov, and an IRS Small Business Health Care Tax Credit information page provides additional details on claiming the credit.

Visit our Small Business Health Care Tax Credit section for more details.