Updated April 2026 · Florida Plan Finder · Licensed Florida Health Insurance Producer

Form 8941: How Florida Small Businesses Claim the Health Care Tax Credit

The Section 45R Small Business Health Care Tax Credit gives qualifying Florida small businesses a credit of up to 50% (35% for tax-exempt employers) of the premiums they paid for employee health coverage. Form 8941 is the calculation worksheet. The credit has tight eligibility rules — fewer than 25 FTEs, average wages under the inflation-adjusted threshold, coverage purchased through SHOP — and a two-consecutive-year limit. Florida businesses that qualify should not leave it on the table.

Related resources:

Small Business Tax Credit Overview SHOP Tax Credit Eligibility SHOP Marketplace Florida

Three Eligibility Tests

Fewer than 25 FTEs. Calculate FTEs as total annual hours of all employees ÷ 2080, capped at 2080 hours per employee. Owners and family members are excluded from the FTE count for this credit.
Average annual wage under $62,000 (2026). Total W-2 wages ÷ FTE count. The threshold adjusts annually for inflation.
Coverage through SHOP marketplace OR an authorized exception. Florida no longer has a state-based SHOP, so businesses use the federal SHOP at HealthCare.gov/small-business or an off-SHOP plan certified as SHOP-equivalent in counties without SHOP carriers.

How the Credit Phases Out

The maximum credit applies when a business has 10 or fewer FTEs and average wages of $30,000 or less. Above those points, the credit phases out proportionally and reaches zero at 25 FTEs or $62,000 average wage.

FTE Count	Avg Annual Wage	Credit Tier
≤10 FTEs	≤$30,000	Full 50% credit
11–24 FTEs	$30,001–$61,999	Partial — phases linearly
≥25 FTEs OR ≥$62,000 avg wage	—	$0 — no credit

Two-Consecutive-Year Limit

The credit can be claimed for only two consecutive tax years. The two-year clock starts the first year the business claims the credit (so a business that purchased SHOP coverage in 2026 and claimed the credit on its 2026 return has 2026 + 2027 as its two credit years). The clock cannot be reset by skipping a year.

How to File

Complete Form 8941 — input FTEs, average wages, premium paid, and contribution percentage
For-profit entities: carry the credit to Form 3800 (General Business Credit), then to the entity return
Tax-exempt organizations: refundable portion claimed on Form 990-T
Pass-through entities (partnership, S-corp): credit flows through to owner via K-1
Carry unused credit back 1 year, forward 20 years (general business credit rules)

Frequently Asked Questions

Can I claim the credit if I bought a plan directly from Florida Blue, not through SHOP?

Generally no. The credit requires SHOP-purchased coverage. There is a narrow exception when no SHOP qualified health plan is available in your county — in those cases you may use a SHOP-certified off-marketplace plan. Most Florida counties have SHOP options through the federal exchange.

Do owner premiums count toward the credit calculation?

No — premiums paid for sole proprietors, partners, >2% S-corp shareholders, and family members of any of those owners are excluded from both the premium amount used in the credit and from the FTE/wage averages.

What if I claimed the credit five years ago and stopped — can I claim it again?

No — the two-consecutive-year limit is a lifetime cap, not a rolling window. Once you've claimed two consecutive years, the business can never claim Section 45R again for that taxpayer.

See If Your Florida Small Business Qualifies for the Section 45R Credit

A licensed Florida broker can run SHOP quotes and confirm tax-credit eligibility before you enroll.

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Licensed Florida Health Insurance Producer · NPN #21249133
Section 45R rules are subject to IRS regulations and annual inflation adjustments. Consult a tax advisor before filing Form 8941.