U.S. Sen. Feingold: Highlights health care tax credit for Wisconsin small businesses

Contact: Zach Lowe (202) 224-8657

Washington, D.C. – U.S. Senator Russ Feingold wants Wisconsin small businesses to be aware of the small business health care tax credit now available to them following passage of the health care reform law. The federal government recently began mailing postcards to small businesses alerting them to the credit and urging them to check their eligibility. The small business tax credit is among the immediate benefits from the landmark law and over 84,000 small businesses in Wisconsin may be eligible for the credits, which could cover up to 35 percent of premiums if firms choose to offer coverage.

“One of the immediate benefits of the health care reform law is this tax credit to help small businesses cover the cost of their employees’ health care,” Feingold said. “I want to help make sure Wisconsin businesses are aware of this credit and how to get more information about their eligibility. Small businesses should be on the lookout for these postcards with details about the tax credit but they can also use the small business tax credit calculator available on my website. And even if businesses did not receive a postcard, they may still be eligible.”

The small business tax credit calculator on Senator Feingold’s website is available at: http://feingold.senate.gov/healthcarereform/hcr_business.html. Qualifying small business 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 their workers’ health care coverage. An eligible small business could qualify for a tax credit of up to 35 percent of premiums paid in 2010.

The credit is worth up to 35 percent of a small business’ premium costs in 2010, and will be available through 2013. On January 1, 2014, the rate increases to 50 percent. More information is also available on the IRS website: http://www.irs.gov/newsroom/article/0,,id=220809,00.html.