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Washington, DC – This week, the Internal Revenue Service (IRS) will begin sending postcards to 25,709 businesses in New Mexico to notify them of the benefits of the small business health insurance tax credit, which was part of the Patient Protection and Affordable Care Act that was passed in March. (View the postcard)
Tax credits of 25 percent of premium costs are available for small businesses that purchase health insurance for employees if the small business has 25 or fewer employers and average annual wages of $50,000 or less. Smaller businesses with 10 or fewer full time employees can receive the maximum tax credit of 35 percent of premium costs. Businesses that contribute at least 50 percent of the total premium costs are eligible.
According to the IRS, eligible small businesses can claim the credit as part of the general business credit starting with the 2010 income tax return they file in 2011.
Businesses can determine if they qualify by using a step-by-step guide. More information about the credit and answers to frequently asked questions. Much of the information in this story was obtained from a press release issued Monday afternoon by the office of Rep. Ben Ray Luján, a democrat, representing northern New Mexico in Congress.