Valley Small Businesses To Be Notified Of Health Care Tax Cuts

Apr 21, 2010
Press Release
Up to 9,700 district small businesses eligible for tax credit

WASHINGTON, D.C. – Valley businesses will be getting a little bit of good news in their mailboxes soon.  Congressman Jim Costa (D-Fresno) said today that businesses will soon receive information in their mailboxes about new tax credits they are eligible for as part of the health care reform legislation approved last month.
  “Small businesses are key drivers of economic growth and job creation,” said Costa. “This tax cut will help many employers offer insurance to their workers and ease their already overburdened budgets. It’s important for Valley small businesses to know this tax credit is available and that they can start taking advantage of it immediately.”
 
The tax credit is available to companies with 25 or fewer employees and an average wage of $50,000 or less that provide health insurance for their employees. There are up to 9,700 small businesses in the district that could qualify for these credits.

Companies with 10 or fewer employees and an average wage of $25,000 or less get the maximum credit—35% of what the employer is paying for insurance coverage.  The maximum credit rises to 50% in 2014.
 
The tax credits are available beginning with this tax year. The IRS will be mailing the postcards to small businesses around the country that may qualify for the credit.

The IRS provides answers to Frequently Asked Questions on the tax credits.