Bill Would Expand Small Employer Tax Credit Eligibility


Rep. Suzan DelBene (D-WA) has introduced legislation that expands tax credits for small businesses to make it more affordable to offer health insurance to their workers. The Small Business Tax Credit Accessibility Act (H.R. 762) would expand and simplify the small business tax credit created under the Patient Protection and Affordable Care Act (ACA).

“Growing our economy means supporting our small businesses, and one straightforward way to do this is to help business owners with the cost of health insurance for their workers,” DelBene said. “It’s clear that the small business tax credit created under the Affordable Care Act – while well-intentioned policy – can be improved to better serve the needs of small businesses.”

The bill aims to make the tax credit more accessible and available for a longer period of time. The bill would:

• raise the maximum size of businesses that are eligible to receive the credit from 25 to 50 employees;
• increase the number of years for which a small business may receive the tax credit to any three consecutive years;
• extend the credit to firms with higher average wages and tie the calculation of wages to the federal poverty level; and
• increase the threshold for a firm to receive the biggest possible credit from 10 to 20 full-time employees.

The legislation is supported by a wide array of national organizations, such as the Association for Enterprise Opportunity, the Association of Women’s Business Centers, Families USA, Main Street Alliance, the National Association of Health Underwriters, National Association of Insurance and Financial Advisors, the National Grocers Association, the National Retail Federation, Small Business Majority, Third Way, U.S. Black Chambers, Inc., and Women Impacting Public Policy.

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