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Hoyer Announces Health Reform Tax Cuts for Maryland Small Businesses

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Congressman Steny H. Hoyer (D-MD) announced April 19, that Maryland small businesses are eligible for new health reform tax credits and will be receiving a postcard from the Internal Revenue Service explaining the credits and encouraging them to take advantage of the tax cut.
 
“Health insurance reform included the largest health care tax cut in history,” stated Rep. Hoyer. “It’s important that Maryland small businesses understand how these tax cuts work and start taking advantage of their benefits 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-profits.  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.
 
“There are 76,794 companies in Maryland that meet the criteria for the tax credit,” said Hoyer.  “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. These tax credits are important elements of the ongoing Congressional agenda to  get the economy of Maryland moving again, and I urge all small businesses to take advantage of them now, beginning in this tax year.”
 
The tax credits are available immediately, and beginning this week, the IRS is 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.

 

For more information and to see if your small business is eligible, please view the IRS’s Frequently Asked Questions on the tax credits. 

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