Notice Provides Guidance on Small Business Health Tax Credit

Notice 2010-44 provides more formalized guidance on the small business health care reform tax credit including guidance on eligibility for the credit, calculating the credit and claiming the credit.

Document Excerpt

 Section 45R of the Internal Revenue Code (Code) offers a tax credit to certain small employers that provide health insurance coverage to their employees. It is effective for taxable years beginning in 2010. Both taxable employers and employers that are organizations described in section 501(c) that are exempt from tax under section 501(a) (tax-exempt employers) may be eligible for the section 45R credit. Employers that satisfy the requirements for the credit are referred to in this notice as “eligible small employers.”

Link http://www.irs.gov/pub/irs-drop/n-10-44.pdf

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