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On Monday, May 17, 2010, the Internal Revenue Service released Notice 2010-44, providing additional guidance on the new health care tax credit for small businesses. Among other items, the Notice provides more detailed guidance regarding:

1. how businesses can determine whether they qualify for the tax credit,
2. what types of health insurance coverage (in addition to major medical) qualify for the credit,
3. how the credit interacts with state tax credits and subsidies, and
4. transition relief for businesses that wish to claim the credit in 2010.

The Notice also provides more than 15 factual examples to assist taxpayers in determining both their potential eligibility and available tax credit.

Note: The IRS previously released a chart containing average premiums in each state for use in calculating the small employer health insurance credit. That chart was published in Revenue Ruling 2010-13, released at the beginning of May.

Resources:

• IRS Notice 2010-44
• IRS Revenue Ruling 2010-13
• Additional IRS (Informal) Guidance

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