WIPP Supports Expansion of Healthcare Tax Credit for Small Businesses
Friday, February 06, 2015
Women Impacting Public Policy supports legislation introduced by Senator Chris Coons (D-DE) that would make more small businesses eligible for the Small Business Health Care Tax Credit. The bill, S. 379
, would increase the size of businesses that can qualify for a business tax credit worth up to 50% of employer-paid premium costs. More information is included in WIPP’s support letter below.
February 5, 2015
The Honorable Chris Coons
Washington, D.C. 20510
Dear Senator Coons,
On behalf of Women Impacting Public Policy (WIPP), I am writing in support of S. 379, the Small Business Tax Credit Accessibility Act of 2015. WIPP is a national, nonpartisan public policy organization advocating on behalf of its coalition of 4.7 million businesswomen including 78 business organizations. For more than a decade, WIPP worked to ensure health care reform included access for women entrepreneurs to competitively priced, quality healthcare coverage. This legislation improves those reforms by ensuring the smallest women-owned businesses can access the Small Business Health Care Tax Credit.
Currently, the tax credit is only available to businesses with 25 or fewer employees and average wages of less than $50,000. To receive the full tax credit, which covers up to 50% of employer-paid premiums, businesses must have 10 or fewer employees and average wages of up to $25,000. Under the Small Business Tax Credit Accessibility Act, these restrictions would be relaxed to make businesses with up to 50 employees and average wages of up to $80,025 eligible for the tax credit. Importantly, S. 379 would extend the number of consecutive years a small business can claim the tax credit from two (current law) to three years. It also removes the requirement that employers claiming the credit contribute the same percentage of the cost for each employee’s health insurance.
Since the tax credit was established, WIPP has heard from business owners across the country that restrictions limited its use. Ultimately, this left business owners with little to no help to shop for company-wide coverage options. This legislation responds directly to that concern and has WIPP’s full support.
A healthy workforce is critical to women business owners who are growing the American economy. Making health coverage for the smallest of women business owners and their employees more affordable will contribute to strengthening the American workforce. We encourage Congress and the Administration to advance this warranted change, and look forward to working closely with you.
Barbara Kasoff, President
Women Impacting Public Policy