Maryland's Official Health Insurance Marketplace

Where do I find more information about the Small Business Health Care Tax Credit?

The IRS will determine your eligibility for the Small Business Health Care Tax Credit. To find out more, visit the IRS website.

The credit is available only if you obtain coverage for your employees through the SHOP Marketplace. You may qualify for employer health care tax credit if you have fewer than 25 full-time equivalent employees making an average of about $50,000 a year or less. To qualify for the Small Business Health Care Tax Credit, you must also pay at least 50% of your full-time employees' premium costs. You don't need to offer coverage to your part-time employees or to dependents.

The tax credit is worth up to 50% of your contribution toward employees' premium costs (up to 35% for tax-exempt employers). The amount of premium assistance you would receive from the Small Business Health Care Tax Credit depends on the amount you contribute to your employee's premiums and how high their annual wages are.

You may apply for the Small Business Health Care Tax Credit only after being deemed eligible to purchase a plan through Maryland Health Connection's SHOP Marketplace. At the end of the year, when you file your business' taxes, you will fill out Form 8941 to claim the tax credit. The IRS will have final say on how much your small business may receive.

For more information on how to claim the tax credit, visit the IRS website.