Up to 15,000 San Fernando Valley companies eligible for substantial tax credit now
Washington, D.C. – San Fernando Valley small businesses will be getting a little bit of good news in their mailboxes. Congressman Brad Sherman (D-Sherman Oaks) said today that companies eligible for new health reform tax credits will be getting a postcard explaining the credits and encouraging them to take advantage of the tax cut.
Congressman Sherman said the tax credit is especially important to getting the Valley economy moving again.
“There are over 15,000 companies in the Valley that meet the criteria for the small business health reform tax credit,” said Congressman Sherman. This is going to make it a little easier for companies already offering insurance to afford it and will allow more small businesses to start providing health care coverage for their workers. It is important for Valley businesses to know it is out there so they can start taking advantage of it immediately.”
The tax credit is available to small businesses with 25 or fewer employees, and an average wage of $50,000 or less that provide health insurance for their employees. Companies with 10 or fewer employees and an average wage of $25,000 or less get the maximum credit—35% of what the employer is paying for employee insurance coverage. The maximum credit rises to 50% in 2014.
The tax credit is also available to small non-profit organizations. For non-profits, the tax credit is worth up to 25% of what the employer is paying for employee insurance coverage. The maximum credit for non-profits rises to 35% in 2014.
The tax credits are available now, beginning with this tax year. The IRS has begun mailing more than 4 million postcards to small businesses around the country to help ensure that they realize they may qualify for the credit immediately.
The IRS website provides answers to Frequently Asked Questions on the tax credits.