Learn About the Affordable Care Act

Small Business Tax Credits

Small Business Tax Credits help small businesses pay for health insurance for their workers.

To qualify small businesses must:

  • Have less than 25 full-time equivalent employees (FTEE)
  • Pay for at least half of the cost of health insurance for some of their workers
  • Pay average yearly wages of less than $50,000

Until 2014, qualifying for-profit businesses get a tax credit of up to 35% of the premiums they paid for their workers. Non-profit businesses get up to 25%.

In 2014:

  • Qualifying for-profit businesses get a credit of up to 50% of the premiums they paid
  • Qualifying non-profit businesses can get a credit of up to 35% of the premiums they paid

Visit the IRS's website to learn more.