Small Business Health Care Tax Credit
This page covers the following topics:
- Employer Eligibility
- Calculating the Credit
- Determining FTEs and Average Annual Wages
- How to Claim the Credit
- Additional Resources
Certain small businesses and tax-exempt
employers that pay at least half of the premiums for employee health
insurance coverage may be eligible for the small businesses health care tax credit.
For tax years 2010–2013, the maximum credit is 35% for small business
employers and 25% for small tax-exempt employers. For tax years
beginning in 2014 or later, the maximum credit increased to 50% of premiums paid for small businesses and 35% of premiums paid for small tax-exempt employers.