Part B · Startup-relevant scheme
Small Business Health Care Tax Credit (Health Care Tax Credit)
Internal Revenue Service
Other
Growth / Scaling
This credit offsets part of the cost of employer-sponsored health insurance for the smallest employers, aimed at increasing the share of small businesses that offer coverage at all.
Type of support
Other
Best suited for
Growth
Headline amount
Up to 50% of premiums paid
How much
Up to 50% of premiums (35% for nonprofits)
Objectives
Make offering health insurance more financially viable for very small employers, where coverage rates otherwise lag much larger companies.
Who can apply?
- Fewer than 25 full-time-equivalent employees.
- Average annual wages below an inflation-adjusted threshold (roughly $50,000 in the base year).
- Employer pays at least 50% of employee-only premium cost uniformly.
- Coverage must generally be purchased through the SHOP marketplace.
What do you get?
- Credit up to 50% of premiums paid (35% for tax-exempt employers).
- Credit is largest for employers with fewer than 10 employees averaging $27,000 or less in wages.
- Claimed via IRS Form 8941.
How to apply
Calculate and claim the credit on your federal return using IRS Form 8941, alongside SHOP marketplace enrollment.
Key links
Details as most recently confirmed against the official source linked above. Deadlines, amounts and windows change — verify on the official portal before applying.