A new report by Families USA shows that around 78.5 percent of Illinois small businesses will be eligible for the health care reform tax credits. These tax credits will be used to help pay for employees’ health insurance coverage.
Businesses that have 25 employees or less will be eligible for the new tax credits, which will help at least 159,900 small businesses in Illinois. Also, the report showed that 48,400 Illinois small businesses will be eligible for the maximum credit of 35 percent, which accounts for businesses that have 10 or less workers who earn around $25,000 or less a year.
The tax credits will be issued this year and are only the first round of credits for small businesses providing group health insurance benefits to employees. In 2014, small businesses will be eligible for 50 percent tax credits when meeting certain requirements.
Typically small businesses have a hard time being able to afford health insurance and these tax credits will help alleviate some of the burden.
Opponents to the tax credits believe they will promote employers to keep wages low and to avoid hiring new employees, yet is impossible to debate that these credits will help businesses.
Ron Pollack, the Executive Director of Families USA, said, “Our nation has counted on small businesses for personal, neighborhood services and as a wellspring for economic growth. The new health reform law will provide much-needed relief to these businesses so they can provide health coverage for their workers.”