The IRS recently released final guidance for small employers eligible for the health care tax credit for the 2010 tax year. In summary, the tax credit is available to small employers who pay at least 50% of the employee only premium, have less than 25 full-time employees and the average wage is less than $50,000 per year.
The maximum credit according to most actuaries is given to those who have 10 or fewer full-time equivalent employees. Because the rules are based on full-time employees, those employers who may employ part-time or seasonal workers may still apply even if you have more than 25 employees.
The credit is part of the general business credit on its income tax return.