Health Law Backers Say Most Small Businesses Will Get Tax Credits
More than 85 percent of Utah small businesses - those with less than 25 employees - will be eligible for federal tax credits to help pay for employee health coverage according to two lobbying groups that favored the health overhaul, The Salt Lake Tribune reports. "The two organizations said 37,800 companies will qualify for the credit, worth up to 35 percent of a small business's premium costs in 2010. The credit increases to 50 percent in January" (Beebe, 7/15).
In Colorado, 83 percent of small businesses will get the credits, the report said, according to the Denver Business Journal. But, only 25 percent of small businesses will be able to tap the maximum credits. "Under the Patient Protection and Affordable Care Act, businesses with 25 or fewer workers who earn an average wage under $50,000 and offer health care to employees are eligible for tax credits of as much as 35 percent of the costs of insurance coverage. The largest credits will go to those businesses that have 10 or fewer workers and pay less than $25,000 to the average worker" (Sealover, 7/15).
In Arizona, 86 percent of small business will access the credit, according to the same report, KVOA, a Tucson television station, reports. "Nationally, more than 4 million small businesses - 83.7 percent of the total - are eligible in 2010 for the credit. Qualifying firms must have less than the equivalent of 25 full time workers, pay average annual wages below $50,000, and cover at least 50 percent of the cost of health care coverage for their workers" (7/15).