Dealers May be Eligible for Small Business Health Care Credit

Dealers May be Eligible for Small Business Health Care Credit

The Affordable Health Care Act of 2010 provides a tax credit for up to 35 percent of employee premiums starting this tax year. An estimated 4 million small businesses, including some dealerships, may qualify for these tax credits, totaling about $40 billion over the next 10 years. This federal credit is in addition to state-level credits eligible employers might receive. To qualify for the health care tax credit, firms must have less than the equivalent of 25 full-time workers (e.g., a firm with fewer than 50 half-time workers would be eligible), pay average annual wages below $50,000, and cover at least 50 percent of the cost of health care coverage for their workers.

The credit is worth up to 35 percent of a small businesss health premium cost in 2010, which increases to 50 percent on January 1, 2014. Small businesses offering their employees dental, vision and other limited-scope health insurance coverage will also receive a tax credit for those. It should be noted, however, that the credit is scaled, meaning the more employees you have above 10, the smaller the credit. Businesses can claim the credit from 2010 through 2013 and for any two years after that.

Click this link to learn more about the tax credit