Up to 50% of what you contribute, back
The Small Business Health Care Tax Credit can return up to half of what you pay toward employee premiums. It’s aimed at the smallest employers, and it’s claimed for two consecutive years.
To claim the credit you generally need fewer than 25 full-time-equivalent employees, average annual wages below an IRS threshold that adjusts each year, a contribution of at least 50% of employees’ premiums, and coverage purchased through the SHOP marketplace. The credit is worth up to 50% of your contributions (35% for tax-exempt employers) for two consecutive years.
The math rewards the smallest, lower-wage employers most. A tax professional can confirm your exact credit — we’ll make sure your coverage is SHOP-eligible so you don’t miss it.
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No — they stack. Your premium contributions are generally a deductible business expense, and if you qualify, the Small Business Health Care Tax Credit is an additional credit on top of that.