May 17, 2010
Washington, D.C. – Nevada Senator Harry Reid today announced that the Internal Revenue Service has released detailed information about tax credits to help Nevada small businesses provide health care for their employees as part of the Patient Protection and Affordable Care Act. The new health care law will also allow small businesses to receive credit for add-on dental, vision and other limited-scope coverage in addition to regular coverage. Small businesses in Nevada and around the country will save $40 billion by 2019 because of the tax credits.
“These tax credits will provide a tremendous boost for 27,000 Nevada small business owners, many of whom want to offer health care but haven’t been able to afford it,” Reid said. “Small businesses pay an average of 18 percent more for premiums than large businesses for the same coverage. The tax credits in the new health care law will allow small business owners to overcome this hurdle and provide coverage for their workers.”
Businesses that employee fewer than 25 full-time workers, pay average annual wages below $50,000, and cover at least 50 percent of health care costs for their employees will receive a tax credit to help offset the cost of premiums paid for employee health care. To determine eligibility and learn how to claim a credit, small business owners should visit www.irs.gov or watch this video: http://www.youtube.com/watch?v=85i1kzIG57k.
The tax credit for Nevada small businesses is just one provision of health care reform that is taking effect almost immediately. Starting in September, the law also allows adult children to remain on their parents’ plans until age 26 and prevents insurance companies from denying coverage for Nevada children with pre-existing conditions; however, several insurance companies with a strong presence in Nevada have adopted these measures well in advance of the required date.