The Internal Revenue Service (IRS) is continuing to promote two small business tax credits that are available to certain businesses that satisfy the programs’ criteria. The first credit is an expanded credit for hiring veterans and the second credit is aimed at encouraging small business owners to offer health insurance coverage to employees.
The expanded Work Opportunity Tax Credit could provide for-profit businesses up to $9,600 per veteran and up to $6,240 for tax-exempt organizations that hire veterans. While the maximum credit is awarded to employers who hire veterans with a service related disability, some level of credit is available to all employers who meet the program’s criteria.
The insurance related credit is available to small business owners that pay at least half of the premiums for employee health insurance coverage. This credit is aimed at employers that hire small to moderate income workers. For tax years 2010 through 2013, the maximum credit is 35% of premiums paid and the maximum credit is increasing to 50% in 2014.
Tax laws change frequently and there are many programs, deductions, and credits that individuals and businesses may be eligible to receive. Call the attorneys at Kohler & Smith Co., LPA today to see if you or your business can take advantage of any of these items.