Sen. Jehlen Highlights Small Business Tax Credits

Health Reform: A Helping Hand for Small Businesses

A year ago this week Congress passed The Affordable Care Act. Too few small businesses know about the tax credits available to them now. Small business should take full advantage of the new tax credits. Senator Jehlen is committed to working with the small business community to ensure that they know about tools in the Affordable Care Act that will help small businesses start-up, succeed, and grow.

Starting this year businesses can claim a tax credit of up to 35 percent of premium costs, helping small business owners reinvest thousands of dollars to grow their business and create jobs.

Over 100,000 small businesses in Massachusetts are eligible for the tax credit starting in the 2010 tax year.

Eligibility for Tax Credits

Generally, tax credits are available for small business owners who:

– Have started or continued health insurance coverage for employees in 2010
– Contribute at least 50 percent of employee premiums at the single coverage rate
– Have fewer than 25 full-time employee equivalents (part-time employees are counted proportionately)
– Pay their employees an average of less than $50,000

This tax credit will provide relief to employers who have postponed wage increases and sacrificed business growth in order to keep their workers covered. The credits will ease the health insurance burdens experienced by existing small businesses, and may spur the growth of new small business.

For more information call Heather Mills at (617) 722-1578or visit the following web pages:

Small Business Federal Health Care Tax Credit Tool, go to Employer page of the MA Health Connector and look under “New Federal Tax Credits” https://www.mahealthconnector.org/portal/site/connector/template.PAGE/menuitem.26c01aac2120f4ce505da95c0ce08041

Health Care Reform FAQ
http://www.smallbusinessmajority.org/hc-reform-faq/

Information on the Tax Season and the Affordable Care Act, Small Business Administration http://www.sba.gov/administrator/7608/14873

– Information from Sen. Jehlen