Small business tax credit

To encourage businesses to offer health benefits to their employees, the federal government is offering tax credits to small businesses. These credits are available to an estimated 4 million small businesses, including nonprofits. Taxable employers are eligible for a maximum credit of 35% of healthcare costs. Tax-exempt employers are eligible for a maximum credit of 25%.

Who's eligible?
To qualify, small employers must:
  • Have fewer than the equivalent of 25 full-time workers
  • Pay average annual wages below $50,000
  • Cover at least 50% of the cost of health care coverage for their workers
When it's effective
The Small Business Tax Credit is available beginning with the 2010 tax year.

Learn more
Our tax credit calculator will help you to determine if you are eligible for a tax credit.

Find out how Priority Health is addressing this requirement.
This webpage provides a general overview of certain aspects of health care reform based on information currently available. It does not cover all of the requirements, and new information is released frequently. Information provided by Priority Health about health care reform should not be considered legal advice. [This is an educational tool only and the effect of reform may differ depending on your circumstances.]