More than 25,700 small businesses in New Mexico potentially could qualify for a new small business tax credit that is part of the new federal health care law, according to the U.S. Department of Health and Human Services.
The tax credit is meant to make it easier for small employers to provide health insurance to their workers and make premiums affordable, the agency says on its website.
Tax credits of 25 percent of premium costs are available for small businesses with 25 of fewer employees and average annual wages of $50,000 or less, according to a press release issued earlier this year from the office of U.S. Rep. Ben Ray Lujan.
Smaller businesses with 10 or fewer full time employees are eligible for the maximum tax credit — 35 percent of premium costs, the release went on to say.
According to the federal health and human services agency, the small businesses pay 18 percent on average “more than large businesses for the same coverage, and health insurance premiums have gone up three times faster than wages in the past 10 years.”