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