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.”
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.