Small businesses receiving state health care tax credits may also qualify for the full federal tax credit, and may also be eligible to receive credit for add-on dental and vision coverage, according to new IRS guidelines released Monday.

Days after The National Federation of Independent Business joined 20 states in a lawsuit challenging the new health care reform law, the IRS released detailed rules to help small employers determine whether they qualify for the credit and to estimate the amount of the credit.

Small employers that pay at least half the cost of single coverage for their employees in 2010 are eligible for the credit, included in the Affordable Care Act. The IRS states the credit is specifically targeted to help small businesses and tax-exempt organizations that primarily employ moderate- and lower-income workers.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

  • Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
  • Exclusive discounts on ALM, BenefitsPRO magazine and events
  • Access to other award-winning ALM websites including and

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.