Small Business Health Insurance Tax Credit in New York
Issue Overview: For the last several years, small businesses have identified the rising cost of health insurance as among the most serious problems facing New York's small business community.
The percentage of businesses offering health insurance to their workers has declined steadily over the last five years as the cost of providing coverage continues to outpace inflation and wage growth. In fact, between 2001 and 2007, health insurance premiums rose 78 percent, a much faster rate of increase than general inflation (17 percent) or workers' earnings (19 percent).
NFIB Position: We have asked for legislation that would provide small businesses with fifty or fewer employees and individuals purchasing their own insurance a state tax credit equal to 10 percent of the cost of health insurance premiums. The tax credits would be phased in over two years, with a 5 percent credit the first year and 10 percent the second year.
Issue Status: Legislation has been introduced by Sen. Seward and Assemblyman Weprin (S.3958A/A.10373) that would provide small businesses with fifty or fewer employees, and individuals purchasing their own insurance, a state tax credit equal to 10 percent of the cost of health insurance premiums.
