Audit: Few Small Businesses Claim Reform Law Tax Credit
In an audit issued this week, the Department of the Treasury's office of the inspector general for tax administration reported that fewer than expected small businesses have taken advantage of a tax credit under the federal health reform law to help provide health coverage for employees. The credit is available to businesses with fewer than 25 full-time workers whose annual incomes average less than $50,000. It pays 35% of insurance premium costs for an eligible applicant, and not-for-profits are eligible for up to 25% off of their premium costs. By May 2011, only about 228,000 small-business owners had claimed the tax credit, the audit found. IRS anticipated that 4.4 million business owners would be eligible for the subsidies.
- "Report: Fewer Than Expected Claiming Small Business Health Credit" (Becker , "Healthwatch," The Hill, 11/7).
- "Treasury, IRS Push Back on Small-Business Credit" (Becker , "Healthwatch," The Hill, 11/7).