You can claim a credit against your income tax liability if your business provides health insurance coverage for its employees. Your credit is a percentage of the premium payments that you made throughout the year for a maximum credit of up to $3,000 per year.
In order to qualify for this credit, as an employer you should meet the following criteria:
- You have been in business in Montana for at least 12 months.
- You employ at least 2 but not more than 20 employees who work at least 20 hours a week.
- You pay at least 50% of each of your employees’ health insurance premiums
Your credit is limited to a maximum of 10 employees and should include small employer group health insurance under the Small Employer Health Insurance Availability Ac
Your eligibility for this credit is not affected if you claimed the federal small business health care tax credit. However, if you are using insurance premiums to calculate the Insure Montana small business health credit (which is a separate credit), these premium payments cannot be used to calculate the health insurance for uninsured Montanans credit.
For further instructions on the health insurance for uninsured Montanans credit, and to calculate this credit, see Montana Form HI. When you claim this credit, you will have to include a copy of Form HI with your tax return.