Significant tax credits for small businesses are available under the new Affordable Care Act. I am meeting this week with small-business owners to discuss job creation across the Tampa Bay area, including construction businesses, armed services contractors and Temple Terrace Mayor Joe Affronti's small business alliance. Many small-business owners are not aware of the meaningful tax credits that are available.

Starting this year, the Affordable Care Act gives small-business owners who offer health coverage a tax credit worth up to 35 percent of premium costs. Nonprofit organizations are eligible for a 25 percent credit. So if your business or nonprofit qualifies for a tax credit, you are eligible right now.

In 2014, the value of the credit will increase to 50 percent – 35 percent for nonprofits. While there is no requirement that businesses offer health insurance to employees, many do. Unfortunately, costs have skyrocketed over the past decade. These tax credits will help immensely.

Small-business owners throughout the Tampa Bay area provide the majority of jobs in our community. We need small businesses to continue to create jobs and grow. The new tax credits under the health reform law provide businesses breathing room to do so.

The size of the credit depends on the average wages and the number of employees. The full credit is available to firms with average wages below $25,000 and fewer than 10 full-time equivalent workers. It phases out gradually for firms with average wages between $25,000 and $50,000, and for firms with the equivalent of between 10 and 25 full-time workers. The vast majority of the Tampa Bay area's small businesses will qualify.

In addition to the robust new tax credits, vital new consumer protections have taken effect, including increased coordination of fraud prevention, free preventive health services for Medicare beneficiaries, and the prohibition against denying insurance coverage to children with pre-existing conditions.

Kathy Castor represents the 11 Congressional District in the U.S. House of Representatives.
http://www2.tbo.com/content/2011/mar/23/MEOPINO1-health-care-law-offers-business-tax-credi/