FOR IMMEDIATE RELEASE:
April 19, 2010
SMALL BUSINESS OWNERS OFFICIALLY NOTIFIED OF TAX CREDITS
Up to 88,970 Wisconsin businesses are eligible for significant tax credit
APPLETON, WI- Congresswoman Steve Kagen, MD reports today that thousands of Wisconsin businesses will soon receive official notification that they are eligible for significant tax credits to lower costs for purchasing private health care coverage for their employees.
Up to 88,970 Wisconsin businesses, including over 11,000 in the 8th District, are eligible this year for new health care tax credits, and will receive a postcard encouraging them to take advantage of this opportunity.
“Small business owners are real winners in our nation’s new health security law,” Dr. Kagen said. “For these business owners, the cost of caring for their employees just went down.”
“Last year, we passed the biggest tax cut in American history, and last month we enacted historic cuts in expenses for small businesses, and it’s important for business owners to begin to take advantage of it immediately.”
The tax credits are available to companies with 25 or fewer employees who have an average annual wage of $50,000 or less that provide health coverage for their employees. Companies with 10 or fewer employees, and an average annual wage of $25,000 or less, will receive the maximum credit – 35% of the employer’s costs for employee’s insurance coverage. The maximum credit rises to 50% in 2014.
Dr. Kagen said the tax credits are especially important to Northeast Wisconsin today, where over 98% of employers are small businesses. These critical tax credits are available beginning this tax year.
Beginning this week, the IRS will be mailing millions of the postcards to small businesses around the country that may qualify for the credit. The post card is available here.