Tax incentiveOpen all year🇺🇸 the United States

Small Business Health Care Tax Credit

Tax credit for small employers that pay at least half of employee-only health insurance premiums through the SHOP Marketplace.

Run by

Internal Revenue Service

Funding

Amount varies

Up to 50% of premiums paid (35% for tax-exempt employers), for two consecutive tax years; phases down with size and wages.

Your share

Employer must pay at least 50% of employee-only premium cost

Who can apply

Fewer than 25 full-time equivalent employees
Average annual wages below an inflation-adjusted cap (e.g. $62,000 for tax year 2023)
Coverage offered through the SHOP Marketplace (limited exceptions)
Claim on Form 8941

How to apply

Claim it on IRS Form 8941 with your annual tax return; there is no separate application.

Timing

Claimed on the annual tax return; available for any two consecutive years.

Last checked

2026-10-11

Official page ↗

BizGrantAI is an independent guide, not a government agency. Rules and amounts change, so always confirm on the official page before applying. We never charge for applications.