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Business tax breaks in health bill very limited

By Jay Heflin - 03/23/10 07:43 PM ET

The business tax breaks in the health reform bill are very limited, according to several congressional sources.

They are temporary. From 2010 to 2013 they are available to businesses outside the Exchange. In 2014, when the Exchange kicks in, they are available for two years. They vanish afterwards. 

They also begin to phase out for employers with more than 10 workers and are completely gone for companies with more than 25 workers.

Companies with payrolls totalling more than $40,000 are ineligble for the credits.

Despite these limitations, Democratic sources say 60 percent of businesses qualify for the tax credit.

Republican sources say only a sliver of that percentage will see the full credit.

They contend businesses with less than 10 workers and payrolls totalling around $20,000 will be the only ones eligible for the entire tax credit.  For larger companies, the thresholds kick in and the credit phases out.


Source:
http://thehill.com/blogs/on-the-money/domestic-taxes/88719-business-tax-breaks-in-health-bill-very-limited

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