Oregon Small Business Health Care Tax Credit

Any small business in Oregon with 1-50 employees can purchase an exchange certified plant from participating insurance carriers. Additionally, if you have a small business with fewer than 25 full-time employees, you could be eligible for the Small Business Health Care Tax Credit. 

The IRS Small Business Health Care Tax Credit helps qualified small businesses lower the cost of offering health insurance to employees. If you own 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% of full-time employees' premium costs. 
  • Purchase a certified medical or dental plan. 

The maximum tax credit is 50% of the amount you pay toward your employees' premium costs (35% 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. 

If you own a small business and you believe you may qualify for the Small Business Health Care Tax Credit, please contact us today!