As of tax year 2014, to qualify for this credit, you must purchase insurance for your employees through the Small Business Health Options (SHOP) Marketplace.
To claim the credit, tax-exempt organizations must file an IRS Form 990-T, Exempt Organization Business Income Tax Return, even if they don’t normally file one.
For some tax-exempt organizations, the SBHCTC is a refundable credit. This means if it’s more than the tax you owe, you may get a refund. Small businesses may be able to carry the credit back or forward to other tax years.
The amount of the credit changes over time. For tax years 2014 and later:
- Small business employers can claim a credit of up to 50 percent of premiums paid
- Tax-exempt organizations can claim up to 35 percent of the premiums paid
Beginning in 2014, the credit is only available to you for two consecutive years.