Approximately 3.4 million Americans who work for the nation’s one million small businesses can take advantage of a healthcare premium tax credit, according to a report by the Commonwealth Fund.  In all, 16.6 million employees are eligible for the tax credit that is one element of the healthcare reform law.

Small employers can take advantage of tax credits to compensate for the cost of as much as 35 percent of the company’s premiums.  To be eligible, companies must have fewer than 25 workers or already pay more than 50 percent of their employees’ premiums.  Four years from now, the credit rises to 50 percent of a company’s premium contribution.  Tax-exempt organizations also qualify, but at a lower rate.

The tax credits are intended to save small businesses $2,359 per employee covered by a family plan in 2014.  According to Congressional Budget Office estimates, the tax credits could save up to $40 billion for small businesses over the next decade and reduce yearly premiums by eight to 11 percent by 2016.

“It really is an economic stimulus measure that will help small businesses get through these tough economic times,” according to Karen Davis, the Commonwealth Fund’s president.