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SHOP tax credits

Small Business Health Care Tax Credit

The IRS Small Business Health Care Tax Credit helps qualified small businesses lower the cost of offering health insurance to employees. If you have a small business in Oregon, you must meet the following minimum criteria to qualify for the tax credit:

The maximum tax credit is 50 percent of the amount you pay toward your employees’ premium costs (35 percent for tax-exempt employers). You do not need to offer coverage to your part-time employees or to dependents to qualify for the tax credit.

Follow these four steps to claim the tax credit when you file your taxes:

  1. Purchase a certified medical or dental plan directly from a participating insurance carrier.
  2. Inform your insurance carrier that you want to apply for the tax credit – your agent can do this for you.
    Your insurance carrier will then contact the Oregon Health Insurance Marketplace to request a letter confirming that the plan you purchased is certified.
  3. Receive confirmation letter from the Oregon Health Insurance Marketplace.*
    The Oregon Health Insurance Marketplace will send the letter to you, your agent, and your insurance carrier.
  4. File the confirmation letter with your taxes when applying for the small business tax credit.

* Note: The Oregon Health Insurance Marketplace does not determine eligibility for the IRS Small Business Health Care Tax Credit; we only confirm that the plan purchased is certified.


If you have questions, e-mail shop.marketplace@oregon.gov

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