Titus: More Than 30,000 Nevada Businesses To Be Notified Of Health Care Tax Credits

Press Release

Congresswoman Dina Titus of Nevada's Third District highlighted an effort by the IRS to reach out to more than four million small businesses and tax-exempt organizations nationwide to make them aware of the new tax credits they are eligible for as part of the health care reform enacted into law last month. In Nevada, 30,345 small businesses will receive the IRS postcard.

"Sky rocketing health care costs have taken a toll on Nevada's small businesses, making it harder for them to compete and succeed," Congresswoman Titus said. "The health care reform passed into law will ease the burden our small businesses face by providing them with important tax credits that lower the cost of health insurance. It is critical that all of Nevada's small businesses that qualify for these tax credits take advantage of them, and this effort by the IRS will help ensure they have the information they need."

The small business tax credit is one of the first provisions of the Patient Protection and Affordable Care Act to go into effect. It is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have.

The tax credit is available to companies with 25 or fewer full-time employees and an average wage of $50,000 or less. Companies with 10 or fewer full-time employees and an average wage of $25,000 or less qualify for the maximum credit -- which is equal to 35 percent of what the employer is paying for insurance coverage. The maximum credit rises to 50 percent in 2014. The eligibility is determined based on the number of "full-time equivalent" employees, so businesses that hire part-time employees may qualify even if they employ more than 25 people.

Small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011. For more information on the tax credit, click here.

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