Health Care Bill Offers Tax Credit to Small Charities

The historic health-care bill adopted by the House of Representatives Sunday night provides relief to small charities that offer health insurance to their employees — a victory for nonprofit leaders who fought for such language.By adopting the Senate version of the major health-care overhaul, the House agreed that both nonprofit groups and businesses could qualify for tax credits. The original House bill offered only income-tax credits to small employers, which would not have helped tax-exempt groups.

The final bill, set to be signed by President Obama in the next day or two, allows nonprofit groups to apply the credit to certain payroll taxes, like the money withheld from employee checks for Medicare. The provision applies to employers with no more than 25 full-time employees and average wages below $50,000. Read More