Claiming the small employer health insurance tax credit

The small employer health insurance tax credit under Sec. 45R was enacted by the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148, to help small businesses and small Sec. 501(c) tax-exempt organizations afford the cost of providing health insurance coverage for their employees. However, many potentially eligible employers that have gone through the relatively complex credit calculation have been dismayed to find that they were eligible only for a small credit or none at all. Because the maximum potential credit increased for 2014, employers that take the time to make the calculation may find that they are eligible for a substantially larger credit than in prior years.