Amended by section 10105 of the Manager’s Amendment. Creates a tax credit for small employers with no more than 25 full-time equivalent employees whose average annual wages are less than $50,000.
Provides that the credit amount is 50 percent (35 percent for tax-exempt eligible small employers) of the lesser of the employer’s aggregate non-elective contributions during the taxable year: under an arrangement in which the employer makes a contribution – which must be a uniform percentage of at least 50 percent of the premium cost – on behalf of each employee who enrolls in a Qualified Health Plan (QHP) offered to employees by the employer through an Exchange; or that the employer would have made under the arrangement if each employee (under the option noted above) had enrolled in a QHP with a premium equal to the average premium (as determined by HHS) for the small group market in the rating area in which the employee enrolls for coverage.
Phases out the credit based on a sliding scale that takes into account the number of full-time equivalent (FTE) employees as well as average wages. Small employers with 10 or fewer FTEs and average wages of no more than $25,000 are eligible for the full amount.
Makes the credit available for a 2-consecutive-taxable-year period beginning with the first taxable year in which the employer offers 1 or more QHPs to its employees through an Exchange. Additionally provides that the credit is available in 2010-2013, although not included for purposes of determining the 2-year credit period noted above and under modified parameters including that the credit is 35 percent (25 percent for tax-exempt eligible small employer); and the basis for calculating the credit amount is the lesser of the small employer’s non-elective contributions for premiums paid for employees’ health insurance coverage or the average premium for the small group market in the State in which the employer is offering coverage (or for such area within the State as specified by HHS).
Effective for taxable years as of 2010.