DES MOINES, Iowa (AP) — Small Iowa businesses would get a tax break for covering part of their employees’ health insurance under a bill advanced by a Senate committee Tuesday.
The Senate’s Ways and Means committee unanimously approved the bill, LSB 1223SZ, which was formerly known as Senate File 412.
The bill would extend a state tax break to small businesses that already receive a federal tax break for helping cover their employees’ health care costs. The legislation will now move to the full Senate.
“We recognize that smaller employers might need a bigger boost,” said Democratic Sen. Joe Bolkcom, of Iowa City. “It just recognizes that employers that have the most difficulty providing health insurance are those that have the fewest employees.”
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Under the Patient Protection and Affordable Care Act (PPACA), a small business that employs up to 24 people and chooses to cover 50 percent of their employees’ health insurance costs gets a federal income tax credit.