Congressman Rick Larsen's Online Office

Washington, D.C. — Today, U.S. Representative Rick Larsen (WA-02), pointed to a new guidance from the IRS that shows over 14,000 small businesses in the 2nd Congressional District of Washington state may qualify for significant tax credits under health insurance reform.  The Affordable Care Act is providing tax credits, effective beginning in tax year 2010, for millions of American small businesses to help them offer health insurance coverage to their employees – if they choose to do so. 

“Small businesses in Northwest Washington will no longer have to choose between health care and hiring,” said Rep. Larsen. “Small businesses are the engine of job growth in this nation. These health insurance tax credits, that cover 35% of the small business’s premium costs this year, and 50% beginning in 2014, will help them create much-needed jobs in this tough economy.”

Yesterday, the IRS announced a number of details of how the tax credit works, including:
that the new tax credit will not be reduced by a state health care tax credit or subsidy (except in limited circumstances to prevent abuse of the credit);
that small businesses can receive the credit not only for traditional health insurance coverage but also for add-on dental, vision, and other limited-scope coverage; and
detailed guidance on how a small business can determine whether it is eligible and how large a credit it will receive.

For more information on the IRS guidance issued today, click here.

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