The House and Senate have now passed the second health care bill with “improvements” to the health care bill that President Obama signed into law on Tuesday. The President is expected to sign this second bill into law next week. This legislation has many implications for nonprofits – including the fact that the tax credits will be available this year to help BOTH small businesses and nonprofit employers purchase health insurance for their employees!
Buried in the bill is a provision co-authored by Senator Grassley that imposes new requirements on nonprofit hospitals including a requirement that the IRS review the tax-exempt status of each hospital every three years and that the Treasury and Health and Human Services departments submit an annual report to Congress on the level of charity care, bad debt expenses and unreimbursed costs for nonprofit hospitals.
New Jobs Bill Provides Nonprofit Employer Tax Benefit
Last week, President Obama signed into law the Hiring Incentives to Restore Employment (Act). Both nonprofit and for-profit employers (regardless of size) would be exempt from paying the employer’s share of social security taxes for new employees who are hired after February 3, 2010, and before January 1, 2011, and who certify that they have not worked more than 40 hours during the last 60 days. The bill also increases the expensing allowance for business in calculating depreciable business assets; provides a refundable tax credit to small issuers of tax-exempt bonds for qualified energy, conservation, and school construction; and expands a number of transportation programs. The IRS has issued a statement about the new provisions which indicates that employers will be able to start claiming the credit on their second quarter employment tax forms, and that revised forms and details will be posted on their website in the next few weeks.
We are continuing to gather information about other job initiatives, including the Local Jobs for America Act (HR 4812) which was introduced by Rep. George Miller this month and now has over 100 House co-sponsors. |