To qualify for the full 50% credit (that's getting back 50% of what you pay for employees' health insurance) you must:
If the company has 11 - 24 full-time equivalent employees, or if the average wages are $25,000 - $50,000, the amount of the credit is reduced, and beyond that the credit falls to zero.
This tax credit is claimed on the company's annual tax return. It's available for all business types: corporations, LLCs, partnerships, and self-employed.
After 2013, the credit can only be claimed on two annual tax returns.
There are many details not included above, plus the IRS is still releasing clarifications. I strongly recommend that you consult with an experienced CPA tax accountant if you think that your business might qualify for this tax credit.
Bess Kane, CPA