I have heard
from so many small business owners across Washington state who were struggling
under the skyrocketing costs of health care.
That is why
I am so proud that under the new health care law, 103,000 small businesses in Washington
could be helped by a new small business tax credit that makes it easier for
businesses to provide coverage to their workers and makes premiums more
affordable.
Small businesses pay, on average,
18 percent more than large businesses for the same coverage, and health insurance premiums have gone up three times faster than
wages in the past ten years. This is unfair, and it needs to change.
So
this tax credit is just the first step towards bringing those costs down and
making coverage affordable for small businesses.
- Small
employers with fewer than 25 full-time equivalent employees and average annual
wages of less than $50,000 that purchase health insurance for employees are
eligible for the tax credit.
- To
be eligible for a tax credit, the employer must contribute at least 50 percent
of the total premium cost.
- The
maximum credit will be available to employers with 10 or fewer full-time
equivalent employees and average annual wages of less than $25,000.
- Businesses
that receive state health care tax credits may also qualify for the federal tax
credit. Dental and vision care qualify for the credit as well.
- For
2010 through 2013, eligible employers will receive a small business credit for
up to 35 percent of their contribution toward the employee’s health insurance
premium. Tax-exempt small businesses meeting the above requirements are
eligible for tax credits of up to 25 percent of their contribution.
- Eligible small businesses can claim the credit
as part of the general business credit starting with the 2010 income tax return
they file in 2011. For tax-exempt organizations, the IRS will provide further
information on how to claim the credit.
For more information on these
tax credits, please visit:
http://www.irs.gov/newsroom/article/0,,id=223666,00.html.