The IRS Small Business Health Care Tax Credit helps qualified small businesses lower the cost of offering health insurance to employees. If you have a small business in Oregon, you must meet the following minimum criteria to qualify for the tax credit:

  • Employ fewer than 25 full-time equivalent employees (not including family members of owners/partners, or seasonal workers who work fewer than 120 days during the taxable year)
  • Pay average annual salaries of $50,000 or less per employee
  • Pay at least 50 percent of full-time employees' premium costs
  • Purchase a certified medical or dental plan

The maximum tax credit is 50 percent of the amount you pay toward your employees' premium costs (35 percent for tax-exempt employers). You don't need to offer coverage to your part-time employees or to dependents to qualify for the tax credit.

To learn more:

Steps to claim the tax credit

List of certified medical and dental plans




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