Good Business Sense: The Small Business Tax Credit in the Affordable Care Act
A report from Families USA and Small Business Majority, May 2012
Key Findings
Millions of Small Businesses Are Eligible for Help with Health Insurance Premiums
- 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 coverage for their workers for the 2011 tax year.
- More than 1.3 million small businesses are eligible for the maximum tax credit when they file their 2011 taxes.
- More than two in five (40.3 percent of) small businesses that are eligible for this tax credit are eligible for the maximum tax credit when they file their 2011 taxes.
Workers in Firms Eligible for Help with Health Insurance Premiums
- Nearly 19.3 million Americans are employed by a small business that is eligible for a tax credit for the 2011 tax year.
- Of these workers, nearly 5.8 million are employed by a small business that is eligible for the maximum credit.
- The total value of the tax credits that are available to eligible small businesses for 2011 is more than $15.4 billion, an average of $800 per worker.
- The total value of the tax credits that are available to small businesses eligible for the maximum credit is more than $6.1 billion, an average of $1,066 per worker.
Help for Black and Hispanic Small Business Workers
Diverse workers are employed by small businesses that are eligible for credits for tax year 2011, including the following:
- More than 12.5 million white, non-Hispanic workers.
- More than 4.1 million Hispanic workers.
- More than 1.6 million black, non-Hispanic workers.
Billions of dollars of help with premiums is available to small businesses that employ Hispanic and black workers:
- The total dollar value of the tax credits that could help white, non-Hispanic workers employed by eligible small businesses is more than $10.1 billion for tax year 2011, or an average of $809 per worker.
- The total dollar value of the tax credits that could help Hispanic workers employed by eligible small businesses is nearly $3.2 billion for tax year 2011, or an average of $769 per worker.
- The total dollar value of the tax credits that could help black, non-Hispanic workers employed by eligible small businesses is more than $1.3 billion for tax year 2011, or an average of $811 per worker.
