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Small Business Tax Credit Available

The recently enacted Patient Protection and Affordable Care Act could earn you a new tax credit this year for providing health insurance for your employees.

If your small business or tax-exempt organization pays employee health insurance premiums in 2010, you may be eligible to claim a new credit on your 2010 tax return. Employers with fewer than 25 employees (more if you have part-time employees), and less than $50,000 in average wages, may be eligible.

How much you may receive Eligible small employers could qualify for a credit worth up to 35% of premiums paid in 2010 (for businesses) or 25% of premiums paid (for tax-exempt groups).

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