Small businesses benefited from Healthcare Tax in Iowa

Small businesses in Iowa could benefit from a new health care tax credit.

The IRS is mailing out information to more than 57,000 Iowa employers about possibly expanding health care coverage. Last week, the agency began mailing postcards to employers and tax-exempt organizations.

The credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. In order for businesses to apply for the credit the information needs to be available.

Right now the emphasis is on making sure people have the information; there will be plenty of time for businesses to be able to make a decision because it applies to tax year 2010. Iowa isn’t the only state that will be receiving postcards. Information is being mailed out nationwide.

"The postcard the IRS is sending out to alert a small business of this new healthcare tax credit is being sent to approximately 4 million small businesses and tax exempt organizations across the country."

The provision is one of the first from the health care reform law signed last month.