From: The Honorable Suzan K. DelBene
Sent By:

Bill: H.R. 4128
Date: 2/28/2014

Cosponsor Fix Legislation to Make Purchasing Health Insurance More Affordable for Small Businesses
Dear Colleague:
We urge you to become a cosponsor of the Small Business Tax Credit Accessibility Act. This commonsense legislation will improve the small business tax credit created under the Affordable Care Act and
make it more accessible for businesses that offer health insurance to their workers. A Senate companion to this bill was introduced this week by Senators Begich, Franken, Hirono, Shaheen, Landrieu, Warner and Walsh.
Small businesses are the backbone of our economy, but the rising cost of health care has made it increasingly difficult for small business owners to provide health insurance to their employees. The Affordable
Care Act took an important step toward addressing this problem by helping many small businesses cover the cost of health coverage for their workers by offering a tax credit. Unfortunately, a May 2012 GAO report found that significantly fewer businesses have
taken advantage of this incentive than initially expected. We believe that making the credit more accessible and available for a longer period of time will help ensure that more small businesses can provide affordable, high-quality health coverage. 
The Small Business Tax Credit Accessibility Act improves, simplifies and expands the small business tax credit created under the ACA. Highlights of this legislation include:
  • Raising the maximum size of the business that is eligible to receive the tax credits from 25 employees to 50 employees;
  • Extending a 35% tax credit to small businesses purchasing coverage outside the SHOP exchange in 2014, while maintaining the tax credit of 50% for coverage purchased on the SHOP exchange;
  • Increasing the number of years for which a small business may receive the tax credit to any 3 consecutive years;
  • Extending the credit to firms with higher average wages and tying the calculation of average wages to the federal poverty line; and
  • Increasing the threshold for a firm to receive the biggest possible credit from 10 to 20 full-time employees.
Our legislation will go a long way toward ensuring that more small businesses can purchase health coverage, while continuing to compete and grow in a still-fragile economy. And as most states’ SHOP exchanges
are still not fully functional, this commonsense expansion of the small business tax credit will offer critical flexibility to business owners that want to offer health coverage to their employees in 2014.
Please join us in improving and simplifying the small business tax credit. For more information or to become a cosponsor, please contact Casey Katims with Rep. DelBene at 5-6311 or Thank you for your consideration.
Suzan K. DelBene                              Frank Pallone                                      Carol Shea-Porter
Member of Congress                          Member of Congress                           Member of Congress