Health Care Tax Credit for Small Tax-Exempt Orgs and Businesses

The Information Center of the American Association of Museums will help your institution negotiate provisions of the new health care legislation.

Many small tax-exempt organizations and businesses that provide health insurance coverage to their employees now qualify for a special tax credit due to the passage of the Patient Protection & Affordable Care Act in March 2010. The Small Business Health Care Tax Credit is one of the first reform provisions of the new law. "Providing health insurance to museum employees is so important, and I am pleased that so many small museums will benefit from this new law,” said AAM President Ford W. Bell. “During the debate on health care reform, AAM joined a coalition working in Congress to ensure that tax-exempt organizations would be eligible for this tax credit, so I hope that many small museums will take advantage of it."

When filing 2010 tax returns, certain eligible tax-exempt organizations and small businesses can apply for a tax credit to cover a portion of their employee health insurance coverage costs. The credit is designed to encourage small employers to offer health insurance coverage for the first time, or maintain existing coverage. Eligible tax-exempt organizations can receive a maximum credit of up to 25 percent of their premiums paid in 2010. To determine whether your tax-exempt organization is eligible for the credit see the IRS’s 3 Simple Steps Fact Sheet. For more information including eligibility rules, credit amount, examples of how the credit applies to employers with different scenarios, and frequently asked questions visit the IRS website.
Direct links to these online resources are available through the AAM Information Center under this path: Information Center > Human Resources > Personnel Policy Issues > Benefits.

The AAM Information Center offers fast, reliable and easy access to hundreds of resources that have been individually reviewed, categorized, & described for their usefulness to museum professionals. The online resources are available to all AAM members. Institutional museum members enjoy the added benefit of customized reference services and access to sample documents by contacting

Sarah Parsons, Assistant Director, Information Center
American Association of Museums


  1. Follow these links for more information:
    Small Business Health Care Tax Credit IRS page:,,id=223666,00.html

    3 Simple Steps Fact Sheet:

    Information Center resource page on human resource > benefits: (note: this is an AAM members-only page so individuals will need their username and password)

    AAM Information Center:

    For questions, contact:

  2. Update on the Tax-Exempt Organizations and Small Businesses Claiming the Health Care Tax Credit: The IRS recently released the new Form 8941 Credit for Small Employer Health Insurance Premiums. Go to:,,id=223666,00.html

    Small employers will use this new form to calculate their health care tax credit. For more information, read AAM's previous announcement about the Health Care Tax Credit. Direct your browser to:


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