Maine businesses will be getting a little bit of good news in their mailboxes soon. Congresswoman Chellie Pingree said today that companies eligible for new health care tax credits will be getting a postcard explaining the credits and encouraging them to take advantage of the tax cut.
"This is the biggest health care tax cut in history," Pingree said. "And it's important for Maine businesses to know it's out there and they can start taking advantage of it immediately."
The tax credit is available to companies with 25 or fewer employees and an average wage of $50,000 or less that provide health insurance for their employees. Companies with 10 or fewer employees and an average wage of $25,000 or less get the maximum credit--35% of what the employer is paying for insurance coverage. The maximum credit rises to 50% in 2014.
Pingree said the tax credit is especially important to Maine companies, which tend to be small businesses.
"There are 46,000 companies in Maine," Pingree said. "37,000 meet the criteria for the tax credit and 23,000 of them are in line for the maximum credit if they offer health insurance. This is going to make it a little easier for companies already offering insurance to afford it and will allow more businesses to start providing health care coverage for their workers."
The tax credits are available beginning with this tax year.
Beginning this week, the IRS will be mailing millions of the postcards to small businesses around the country that may qualify for the credit.