The Small Business Health Care Tax Credit can help you provide health insurance coverage to your employees. The credit can be up to 50% of the premiums you paid for health insurance coverage under a qualifying arrangement, or, if you’re an eligible tax-exempt employer, up to 35% of premiums you paid.
In order to claim this credit, your business must have:
- Fewer than 25 full-time (or equivalent) employees
- Pay average wages of less than an inflation-adjusted amount a year per full-time equivalent
- Offer a qualified health plan to its employees through a Small Business Health Options Program Marketplace (or qualify for a limited exception to this requirement)
- Pay at least 50 percent of the cost of employee-only (not family or dependent) health care coverage for each employee
Program Entry
- Federal Section
- Deductions
- Select My Forms
- Credits
- Small Employer Health Insurance Premiums