Small Business Health Options Care Tax Credit Information

Programs that provide information about the tax credit that helps small businesses and small tax-exempt organizations afford the cost of providing health care for their employees. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have, and is specifically targeted for those with low and moderate income workers. For tax years beginning in 2014 or later, the maximum credit is 50 percent of premiums paid for small business employers and 35 percent of premiums paid for small tax-exempt employers. To be eligible for the enhanced credit, a small employer must pay premiums on behalf of employees enrolled in a qualified health plan offered through a (SHOP) Marketplace. The credit is available to eligible employers for two consecutive taxable years.