WANTED TO OFFER HEALTH BENEFITS BUT COULDN'T AFFORD IT?

Indiana legislation HEA 1678-2007 created several new tax credits for employers:

1.  A new tax credit retroactive to January 1, 2007 is available for employers who did not provide health coverage to employees in the taxable year imediately preceding the first taxable year for which the credit is claimed.  While 95% of our industry provides health insurance to employees, perhaps there is a class of employee in your firm that isn't offered coverage.  The tax credit is good for the first two years you provide coverage and is equal to the lesser of $2500 or $50 times the number of people enrolled in the plan. You must make the plan available to your employees for at least 24 months after the last day of the taxable year in which you first offer the coverage, otherwise you will have to repay the Department of Revenue for the amount of credit you received.  For more information, see Indiana Department of Revenue Information Bulletin #101.

2.  The legislation created a Small Employer Qualified Wellnes Program Tax Credit for tax years beginning after 12/31/06.  It applies to companies with two to 100 employees and is equal to 50% of the costs incurred to provide a qualified wellness program. For more information, see Indiana Department of Revenue Information Bulletin #102.