This week the IRS provided guidelines for allowing small businesses to qualify for significant tax credits under health insurance reform.
The Affordable Care Act is providing tax credits, effective beginning in tax year 2010, for millions of American small businesses to help them offer health insurance coverage to their employees -- if they choose to do so.
The IRS announced a number of tax credit details, including: that the new tax credit will not be reduced by a state health care tax credit or subsidy (except in limited circumstances to prevent abuse of the credit); small businesses can receive the credit not only for traditional health insurance coverage but also for add-on dental, vision, and other limited-scope coverage; and detailed guidance on how a small business can determine whether it is eligible and how large a credit it will receive
Under the reforms, North Carolina's small businesses can receive tax credits to cover 35 percent of the small business's premium costs this year, and 50 percent beginning in 2014. These businesses are not required to provide health insurance, but many want to in order to retain and recruit good workers.
Affordable coverage for small businesses is a top priority, and Congress must make sure the reforms are working for them.