Health Care Tax Credit Solution

Make sure your clients and prospects get the maximum amount of tax credits by leveraging the small business Health Care Tax Credit now. You may question if the tax credit is compelling enough to bring to your clients. Here are data and insights as to why the tax credit is meaningful and how you can take advantage of it.

Using our Tax Credit Estimation, we worked with brokers to analyze over 100 companies to determine their tax credit eligibility, and found:

• 75% qualified for the tax credit.
• Nearly 25% of those that qualified purchased coverage through Covered California for Small Business (also known as SHOP: Small Business Health Options Program) and received an average credit of $5,800.
• Over 70% had no prior coverage.
• 20% of those groups that did not qualify for the tax credit chose to purchase coverage anyway.
• A variety of business types qualified, including: preschools, auto shops, landscapers, home care, bakeries, doctor and dentist offices, and non-profits.

Tax credit insights and tips to enhance your selling efforts:

• Establish new sales opportunities – employers can afford to offer coverage for the first time.
• Increase your conversion and retention rates with a hard dollar value proposal.
• Create urgency – the tax credit is maximized by migrating to Covered California for Small Business early in the year.

Your small employer clients may be eligible for tax credits of up to 50% of the cost of employer-paid premiums with the Health Care Tax Credit*. Employers need to enroll in a Covered California for Small Business plan to qualify.

How To Sell The Tax Credit To Your Clients

Download our Tax Credit Solution for brokers and get the:

• Reference Guide for insurance brokers and agents to understand the tax credit and which groups may qualify.
• Customizable Reference Guide to present to your clients and prospects explaining the value of the tax credit when they purchase Covered California for Small Business coverage.
• Tax Credit Estimation – Client Worksheet helps collect the data we need to produce a free, customized Tax Credit Estimation Report for you.
• Sample Tax Credit Estimation Report shows you what the customized report will look like.

To request a personalized Tax Credit Estimation Report, simply email the completed Tax Credit Estimation Worksheet to info@claremontcompanies.com.

Get Started Now

Additional Resources

• IRS Healthcare Tax Credit Web Site (Q&A and Form 8941 instructions)
• Healthcare.gov Tax Credit Estimator
• Small Business Majority: Small Business Tax Credit in CA
• The Balance Small Business: The Health Care Tax Credit for Small Businesses

If you have clients who may qualify, don’t delay. Our team of tax credit experts is here to support you. Contact us today at 800.696.4543 or info@claremontcompanies.com.

*The tax credit is a dollar for dollar reduction in the amount of taxes due. It is more valuable than a typical business deduction which reduces taxes by the amount of the marginal tax rate.

“Covered California”, “California Health Benefit Exchange”, and the Covered California Logo are registered trademarks or service marks of Covered California, in the United States.