Today, Congressman Bill Foster (IL-14) announced that small businesses who may be eligible for tax credits as a result of the health insurance reform law will be receiving postcards explaining these new benefits.
"As a small businessman, I have met payroll and provided health insurance to my employees, and I understand the unique challenges small businesses face," said Foster. "One of the reasons I supported health insurance reform was that the final plan is a good deal for small businesses, and I hope that small businesses in my district take advantage of the new tax credits that are available."
The tax credit is available to small businesses 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 employee insurance coverage. The maximum credit rises to 50% in 2014.
The tax credit is also available to small non-profits. For non-profits, the tax credit is worth up to 25% of what the employer is paying for employee insurance coverage. The maximum credit for non-profits rises to 35% in 2014.
"In the state of Illinois, more than 190,000 small businesses are eligible for tax credits," said Foster. "These credits will incentivize companies to begin to offer health insurance to their employees, and for companies that are already offering health benefits, it will make their coverage more affordable."
The tax credits are available now, beginning with this tax year.
Beginning this week, the IRS is mailing more than 4 million postcards to small businesses around the country to help them realize they may qualify for the credit immediately. Postcards are being sent to small businesses that the IRS estimates will be eligible for the credit.