The Small Business Health Care Tax Credit

The Hype:
Small Business Majority and Families USA
Published: May 9, 2012

More than 3.2 million small businesses (70.1 percent of businesses with fewer than 25 workers) are eligible for tax credits to help with the cost of health insurance coverage for their workers for the 2011 tax year.

Nearly 19.3 million Americans are employed by a small business that is eligible for a tax credit for 2011.

The total value of tax credits available to eligible small businesses for 2011 is more than $15.4 billion, an average of $800 per worker.

The Reality:
170,300 small employers claimed it. The cost of credits claimed was $468 million.

Small Employer Health Tax Credit: Factors Contributing to Low Use and Complexity, GAO-12-549, May 14
http://www.gao.gov/products/GAO-12-549

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