Under the recently approved Patient Protection and Affordable Care Act, many small businesses will be eligible to receive tax credits to pay for their employees' health insurance.
Specifically, businesses with ten or fewer full time equivalent employees, earning $25,000 a year or less, and those with 25 or fewer full time equivalent employees earning $50,000 a year or less will be eligible for a tax credit up to 35%, starting retroactively in January 2010.
In addition, small business owners will be pleased to note that receiving state tax credits will not affect eligibility for federal tax credits under the law.
"Federal credit will never be reduced because an employer is also getting a state health care credit or subsidy," said Assistant Treasury Secretary for Tax Policy Michael Mundaca during a conference call with reporters on Monday morning.
Mundaca gave more good news when he elaborated on the enhanced coverage of the law, which provides for the inclusion of coverage for add-on benefits, like vision and dental care, in addition to traditional medical coverage.
U.S. Department of Labor Secretary Hilda Solis, who also participated in Monday's call, trumpeted the law's subsidy provisions for small businesses.
"The tax credit proposal provides tens of billions of dollars in new tax credits to small businesses to make it easier for them to provide coverage to their employees."
Good News For Small Businesses Under New Healthcare Law
Talk Radio News Service
Under the recently approved Patient Protection and Affordable Care Act, many small businesses will be eligible to receive tax credits to pay for their employees' health insurance.
Specifically, businesses with ten or fewer full time equivalent employees, earning $25,000 a year or less, and those with 25 or fewer full time equivalent employees earning $50,000 a year or less will be eligible for a tax credit up to 35%, starting retroactively in January 2010.
In addition, small business owners will be pleased to note that receiving state tax credits will not affect eligibility for federal tax credits under the law.
"Federal credit will never be reduced because an employer is also getting a state health care credit or subsidy," said Assistant Treasury Secretary for Tax Policy Michael Mundaca during a conference call with reporters on Monday morning.
Mundaca gave more good news when he elaborated on the enhanced coverage of the law, which provides for the inclusion of coverage for add-on benefits, like vision and dental care, in addition to traditional medical coverage.
U.S. Department of Labor Secretary Hilda Solis, who also participated in Monday's call, trumpeted the law's subsidy provisions for small businesses.
"The tax credit proposal provides tens of billions of dollars in new tax credits to small businesses to make it easier for them to provide coverage to their employees."