2010 April 12 – Small Business Tax Credits Bulletin

2010 April 12 – IRS Small Business Tax Credits FAQs Attachment

2010 April 12 – IRS Small Business Tax Credit Worksheet Attachment

GREENBERG & ASSOCIATES INSURANCE

7327 S.W. Barnes Road, PMB 622 (503) 297-8078

Portland, OR 97225 (Fax) 297-8094

* * * IMPORTANT BULLETIN * * *

TO: GROUP HEALTH CLIENTS

FROM: GREENBERG & ASSOCIATES INSURANCE

DATE: APRIL 12, 2010

RE: SMALL BUSINESS TAX CREDITS IN THE PATIENT PROTECTION AND AFFORDABLE CARE ACT.

As you may have heard, included in the recent Healthcare Reform legislation which was passed into law March 23, 2010, it includes provisions for a Small Business Tax Credit. Since the tax credit is retroactive for all Small Group Plan years retroactive to January 1, 2010, it is one provision we wanted to bring to your attention as soon as possible so you can start discussing with your tax professional whether you will qualify for this tax credit or not. There are still many unanswered questions about the tax credits, but, we have received some fairly comprehensive information from the National Association of Health Underwriters and the Internal Revenue Service website. Rather than restate what they have made available to us, we are passing on the attached documents to you at this time.

Even though your group may not qualify for the Small Business Tax Credit, we think it is important that we provide this information to all of our group clients at this time. First of all, we want you to be aware of the many different facets of the reform legislation, not just what might have an impact on your particular situation. But, in addition, we’d like you to know enough about the Small Business Tax Credit so that you can inform others that may qualify for the Tax Credit about it whether it be a business associate, family member or friend. The tax credits are very substantial and will offer a much needed source of assistance for many small businesses.

We are in the process of also putting together a comprehensive bulletin regarding the other provisions of the Patient Protection and Affordable Care Act. Therefore, watch for another bulletin from us very soon going into comprehensive detail about what to expect in the future. Since the regulations have not been written yet, this will be unfolding over the next year. As we know more about the reform act and how it impacts our industry and your group health plans, we will be sharing that with you.

The attached IRS Small Business Health Care Tax Credit: Frequently Asked Questions and the IRS Small Business Tax Credit worksheet are both available on the IRS Website at www.irs.gov . The attached article titled Small Business Tax Credits in the Patient Protection and Affordable Care Act was provided by the National Association of Health Underwriters.

Sincerely,

Sharon Greenberg and Adrienne Hutchins