A new report shows that more than 84 percent of Georgia’s small businesses will benefit from health tax credits this year.
The tax credit program is a key element of the new health care reform law that will help small businesses with fewer than 25 workers pay for employee health insurance. Those who offer coverage will receive a tax credit for up to 35 percent of the average cost of a small group plan in their state.
More than 4 million small businesses across the nation are eligible this year for the credit.
In Georgia, 120,300 small businesses will qualify for the tax credits. Of this group, 37,500 employers will receive the maximum credit of 35 percent. Those eligible for this value are Georgia’s smallest businesses that employ 10 or fewer workers who earn an average wage of less than $25,000.
John Arensmeyer is the CEO of a small business advocacy group that worked with Families USA to issue the report:
"It's really against this crisis backdrop that Congress said, look, we really need to address the needs of small businesses now even before the full law goes into effect in 2014. And they designed and developed this tax credit as a very targeted way to address a really critical problem."
The small business benefits of the health care reform law will continue to expand throughout the next four years. Tax credits of up to 50 percent will kick in by 2014.