Obama said plans are in the works to notify small business about the tax credit that begins immediately to cover up to 35 percent of health insurance premiums for workers. The credit will increase to 50 percent in 2014. Businesses can claim the credit for up to six years. Firms can claim the credit from 2010 to 2013 and any two years after that time.
To qualify, a company needs to have few than the equivalent of 25 full time workers, according to the White House. It also must pay average annual wages less than $50,000 and cover at least half of its workers.
CBO has estimated the tax credit will save small businesses $40 billion by 2019.
The Council of Economic Advisors has estimated that 4 million businesses will qualify for the tax credit if they provide insurance coverage.