The IRS has issued final guidance on the small business health care tax credit for the 2010 tax year and released the new Form 8941 “Credit for Small Employer Health Insurance Premiums” and the revised Form 990-T.

As you know, the small business health care tax credit is designed to encourage both small businesses and small tax-exempt organizations to offer health insurance coverage to their employees for the first time or maintain coverage they already have. Small businesses can claim the credit for 2010 through 2013 and for any two years after that. For tax years 2010 to 2013, the maximum credit is 35 percent of premiums paid by eligible small businesses and 25 percent of premiums paid by eligible tax-exempt organizations.

The new guidance addresses many questions about which employers qualify for the credit and a set of instructions can help small employers correctly figure and claim the credit.

For more information about the credit, click here.

Click here to view the regulations.

Click here to view Form 990-T, Form 8941, and the instructions for Form 8941.