The Small Business Health Care Tax Credit is a federal credit available to Florida small businesses that purchase group health insurance through the SHOP (Small Business Health Options Program) marketplace. For qualifying businesses, it can offset up to 50% of employer-paid premiums — a meaningful reduction in the net cost of offering health benefits. Most Florida small businesses don't qualify due to the restrictive eligibility criteria, but those that do can claim significant savings for up to two consecutive tax years.
| Requirement | Threshold |
|---|---|
| Number of FTE employees | Fewer than 25 FTEs |
| Average annual wages | Under $62,000 per FTE (2026) |
| Employer contribution | At least 50% of employee-only premium |
| Plan purchase method | Must be purchased through the SHOP marketplace |
| Maximum credit (for-profit) | Up to 50% of premiums paid |
| Maximum credit (nonprofit) | Up to 35% of premiums paid |
| Credit duration | Up to 2 consecutive tax years |
Shopping group health for your team
The maximum credit applies to businesses with 10 or fewer FTEs and average wages of $31,000 or less. The credit phases out linearly for businesses between 10–25 FTEs and between $31,000–$62,000 average wages. The credit is applied against actual premium payments — only the employer-paid portion of premiums counts, not employee contributions. Owners (sole proprietors, partners, S-corp shareholders owning 2%+, and 5%+ shareholders) and their family members are excluded from the FTE count and from the premium calculation.
Florida uses the federal SHOP marketplace (accessed through HealthCare.gov/small-businesses). Available Florida carriers on SHOP may be more limited than the full off-marketplace small group market. For many Florida small businesses, the premium savings from broader carrier competition in the off-SHOP market outweigh the tax credit — particularly for businesses above 15 FTEs or above $45,000 average wages, where the credit phases out significantly. A broker can model both scenarios for your specific business.
Our licensed brokers can model your SHOP eligibility and compare it against off-marketplace options.
Get My Analysis