Senate Finance Committee Passes Health Care Reform Bill

Today the Senate Finance Committee passed its health care reform bill out of committee. The approved legislation includes an important amendment for nonprofits.

The amendment would extend the small business tax credit provision to include 501c3 tax exempt nonprofit organizations. Specifically, the tax credit would allow charitable organizations with 25 or fewer employees to be eligible to apply the tax credit against the organization's payroll taxes withheld from its employees. Nonprofits would be eligible for a 25% credit from 2011-2013 and a 35% credit in 2013 to help them provide quality, affordable health insurance to their workers.

This amendment is a viable way for Congress to support nonprofit employers and their ability to afford health care. It is promising that this amendment has passed the Senate Finance Committee however it is only included in this particular bill.

Therefore further advocacy is needed so that similar language is incorporated in the final Senate and House bills. Please stay tuned on ways you can take action to make your voice heard on the issue of health care reform.

To learn more about how nonprofits fit into health care reform please visit LANO's policy brief on our website.