The White House has released a fact sheet on the new Small Business Health Credit. According to the fact sheet, the tax credit is effective immediately "and can cover up to 35 percent of the premiums a small business pays to cover its workers." Both small for-profit businesses and small not-for-profit organizations are eligible.

To get the word out, information is being provided to small businesses through a White House Web feature, postcards sent by the IRS to those businesses that may be eligible, an IRS outreach to tax workshops and small business forums, an email "blast" to tax professionals on its mailing list, and a special section on IRS.gov.

In 2014, the fact sheet notes, the rate will increase to 50 percent. The Congressional Budget Office has estimated that the tax credit will save small businesses $40 billion by 2019.

An estimated four million small businesses will be eligible for the credit if providing health care to their workers. Those businesses qualifying must have fewer than the equivalent of 25 full time workers, pay average annual wages lower than $50,000 and cover at least 50 percent of the health care coverage for workers.

The fact sheet also points out the benefits derived from the new health care reform law, including more bargaining power through exchanges, ending price discrimination in the form of sudden premium increases for businesses with sick workers, and health security that allows entrepreneurship.

The fact sheet is available at: http://www.whitehouse.gov/the-press-office/fact-sheet-small-business-health-care-tax-credit

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