U.S. Senator Chris Coons (D-Del.) introduced legislation on Thursday to help small business owners who want to provide health insurance to their workers.
The Small Business Tax Credit Accessibility Act would expand and simplify the Affordable Care Act’s small business tax credit, making it available to more employers and for a longer period of time.
“The Affordable Care Act is already doing a lot of good for a lot of Americans, but where we can make it work better, we should,” Coons said. “I’ve spoken with small business owners in Delaware who want to offer their employees health insurance, but are struggling to afford it. The Affordable Care Act created a small business tax credit to help these businesses, but unfortunately too many are either ineligible or discouraged by its complex requirements.”
“I not only believe that Senator Coons’ bill to improve the small business tax credit is a step in the right direction, I think it is a necessary one to preserve small business health benefits,” Nick Moriello of Health Insurance Associates in Newark said. “I have been an agent and a member of the National Association of Health Underwriters for a long time now. I have seen small businesses wanting to offer healthcare to their employees, but are struggling to do so. Reform needs to be made by simplifying the process and alleviating the stringent eligibility standards. Senator Coons’ bill will help to achieve these reforms.”
The Small Business Tax Credit Accessibility Act, which has been endorsed by the New Castle County Chamber of Commerce, would:
• Raise the maximum size of businesses that are eligible to receive the credit from 25 employees to 50 employees
• Extend the credit to businesses with higher average wages. Currently, only businesses with an average wage below $50,000 can qualify for the credit. This bill would raise the maximum average wage to 330% of the federal poverty line for a family of four ($80,025 in 2015).
• Increase the threshold for a firm to receive the maximum credit from 10 to 20 full-time employees
• Modify the phase-out of the credit to ensure that any business that meets the full-time employee and average wage thresholds will qualify for a tax credit of some magnitude
• Increase the number of years for which a small business may receive the credit to three consecutive years
The bill has been endorsed by a number of business groups, Coons reported.
