Sequestration Cuts Small Business Health Care Tax Credit Refunds By 8.7%

Employers who are eligible to receive Small Business Health Care Tax Credit refunds will see a decrease of about 8.7% in the amount of their refund in 2012; this is due to the automatic mandatory federal budget cuts resulting from the sequestration process that began March 1, 2013. The Internal Revenue Service announced the reduction in its March 4, 2013 memo, “Exempt Organization Update for Charities and Nonprofits.” The small business health care tax credit was among the provisions in the Patient Protection and Affordable Care Act (PPACA) enacted in 2010. The tax credit was intended to encourage small . . .