Dental and Vision Plans Eligible for Tax Credit

The tax credit for small businesses to be effective January 1, 2010 under the Patient Protection and Affordable Care Act (PPACA) will be extended to dental and vision plans in addition to medical plans. Under the PPACA small businesses can claim a federal tax credit of up to 35 percent of the employer’s contribution toward their employees’ health insurance premiums. The Council of Economic Advisers estimates that there are currently more than 4 million small businesses eligible for the credit. To claim the credit, employers must:
*       Have fewer than the equivalent of 25 full-time workers
*       Pay average annual wages below $50,000
*       Cover at least 50 percent of the cost of health care coverage for their workers

For more information contact the IRS at www.irs.gov