The Small Business Health Care Tax Credit (IRC §45R) can offset up to 50% of health insurance premiums paid by qualifying Florida businesses. It is available exclusively for employers who purchase coverage through the SHOP marketplace. The credit phases out as your employee count and average wages increase — maximum value goes to Florida businesses with the fewest employees and lowest average wages. Here is a complete eligibility guide.
| Requirement | Threshold |
|---|---|
| Number of full-time equivalent employees (FTEs) | Fewer than 25 FTEs (credit phases out between 10–25 FTEs) |
| Average annual wages | Under $62,000/year (2026; credit phases out between $31,000–$62,000) |
| Employer premium contribution | At least 50% of employee-only premium costs |
| Coverage source | Must purchase through the SHOP marketplace |
| Credit duration | Maximum 2 consecutive taxable years |
Comparing ACA plans in Florida
| Employer Type | Maximum Credit |
|---|---|
| For-profit small business | Up to 50% of premiums paid |
| Tax-exempt nonprofit (501(c)(3)) | Up to 35% of premiums paid (as payroll tax credit) |
FTEs for SHOP purposes are calculated differently than for the ACA employer mandate. Hours worked by all employees are added together and divided by 2,080 (one FTE = 2,080 hours/year). Part-time and seasonal employees' hours count toward the total but they are not each counted as a full FTE. Owners, partners, 2%+ S-Corp shareholders, and their family members are excluded from the FTE count and from the average wage calculation.
| Business Profile | Annual Premiums Paid | Estimated Credit |
|---|---|---|
| 5 FTEs, avg wages $30,000, for-profit | $25,000 | ~$12,500 (50%) |
| 12 FTEs, avg wages $40,000, for-profit | $50,000 | ~$17,500 (partial phase-out) |
| 8 FTEs, avg wages $35,000, nonprofit | $30,000 | ~$10,500 (35%) |
| 20 FTEs, avg wages $55,000, for-profit | $80,000 | ~$8,000 (heavy phase-out) |
A licensed broker can assess eligibility and handle SHOP enrollment for you.
Check My Eligibility