Small businesses are eligible for more than they think under the new tax credit provisions of the healthcare reform law, federal officials said during a teleconference.
Reform law holds tax benefits for small business, officials say
New guidance issued by the Treasury Department makes it clear that small businesses may receive state and federal tax credits, Michael Mundaca, Treasury assistant secretary for tax policy, said during a teleconference. In other words, a business's credit will not be reduced if it also receives a healthcare tax credit or subsidy from a state, he said.
The guidance also clarifies that small businesses can receive the credit not only for traditional health insurance but also for add-on dental, vision and other limited-scope health insurance coverage, Mundaca said. Officials estimated that up to 4 million small businesses may qualify for this tax credit, which would be available starting this year, although businesses wouldn't receive the credit until they filed their taxes in 2011.
The guidance was released several days after the National Federation of Independent Business, which represents small-business owners, decided to join a lawsuit with 20 states to overturn the healthcare law.
“Small-business owners everywhere are rightfully concerned that the unconstitutional new mandates, countless rules and new taxes in the healthcare law will devastate their business and their ability to create jobs,” Dan Danner, president and CEO of NFIB, said in a written statement.
Addressing this development in the teleconference, Karen Mills, administrator of the Small Business Administration, countered that most small businesses “are excited about this tax credit,” that it means money in their pockets. “NFIB knows that healthcare is No. 1 concern of small businesses,” and the new law would help overcome coverage challenges for these firms, Mills stated.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.