Small Business Health Care Tax Credit

If you participate in the Small Business Health Options Program (SHOP), you may qualify for the Small Business Health Care Tax Credit and state-based assistance to help lower the cost of health insurance premiums. This tax credit can be worth up to 50% of your premium contributions. To qualify for the tax credit, you must have: Fewer than 25 full-time equivalent (FTE) employees An average employee salary of $53,000 per year or less A contribution of at least 50% of your full-time employees’ premium costs Offer SHOP coverage to all full-time employees The Small Business Health Care Tax Credit Estimator can help you determine if your business qualifies for the tax credit, and how much it could be worth.

Remember: From now until December 15 you do not have to meet the minimum participation rate requirement to enroll in SHOP coverage. This means your small business can get coverage even if only some of your employees accept your SHOP coverage offer. Questions? Contact the SHOP Call Center at 1-800-706-7893 (TTY: 711) weekdays from 9 a.m. to 5 p.m. Eastern Time.  Thank you, The SHOP Team