New Report Shows 80 Percent of Maryland Small Businesses Eligible for Health Care Tax Credits
BALTIMORE, July 22 /PRNewswire-USNewswire/ -- A new report by Families USA and Small Business Majority titled A Helping Hand for Small Businesses: Health Insurance Tax Credits shows that nearly 80 percent of Maryland small businesses are eligible for premium tax credits in 2010. Nationally, more than 4 million small businesses will be eligible to receive a tax credit for the purchase of employee health insurance in 2010.
The tax credit program, a key element of the Patient Protection and Affordable Care Act, targets small employers with up to 25 workers. Small employers who offer coverage can receive a tax credit for up to 35 percent (or 25 percent for nonprofits) of the average cost of a small group plan in their state, starting in the 2010 tax year. To qualify for the tax credits, businesses must cover at least 50 percent of each employee's health insurance premiums.
"The tax credit is an incentive and a reward for small businesses and nonprofits that are being responsible and taking care of their employees. It's an important step on the path to good, affordable health care for all Americans," says Neil Bergsman, director of the Maryland Budget and Tax Policy Institute.
Small businesses—like the local diner, the hardware store down the street, or the neighborhood repair shop have been serving us; however, our health care system has been failing them, making it difficult—if not impossible—to provide their workers with quality, affordable health coverage. Particularly for the smallest businesses, the cost of providing health insurance can be prohibitively expensive. Congress and the President recognized that small businesses, particularly those with 10 or fewer workers, struggle to provide health insurance for their workers, and that some cannot afford to provide it at all. Legislators therefore included many provisions in the law to help small employers, including nonprofit organizations and their workers obtain high-quality, affordable coverage.
The Maryland Budget and Tax Policy Institute is a nonpartisan research organization that provides timely, accurate and accessible analysis of state budget and tax issues. In addition to general budget and tax research and analysis, the Institute examines issues affecting low-income Marylanders and other vulnerable populations and the important community programs that serve them. The Maryland Budget and Tax Policy Institute is funded from foundation grants, and individual donations. The Institute is a project of Maryland Nonprofits ® and a part of the State Fiscal Analysis Initiative (www.statefiscal.org) and the Economic Analysis and Research Network, both of which are national networks of policy research organizations that serve them. The Maryland Budget and Tax Policy Institute is funded from foundation grants, and individual donations. The Institute is a project of Maryland Nonprofits ® and a part of the State Fiscal Analysis Initiative (www.statefiscal.org) and the Economic Analysis and Research Network, both of which are national networks of policy research organizations.
SOURCE Maryland Budget and Tax Policy Institute