Small tax-exempt organizations may be eligible for a credit worth up to 25 percent of healthcare premiums they pay employees in 2010 as part of healthcare legislation signed into law in March.

The credit is available to small employers that pay at least half the cost of single coverage for their employees in 2010. The credit is specifically targeted to help small businesses and tax-exempt organizations that employ primarily low- and moderate-income workers.

For tax years 2010 to 2013, the maximum credit is 25 percent of premiums paid by eligible employers that are tax-exempt organizations and 35 percent of premiums paid by eligible small business employers.

The maximum credit goes to smaller employers – those with 10 or fewer full-time equivalent (FTE) employees – paying annual average wages of less than $25,000.

Because the eligibility rules are based in part on the number of full-time equivalent employees, not the total number of employees, businesses that use part-time help may qualify even if they employ more than 25 individuals.

The credit is completely phased out for employers that have 25 FTEs or more or that pay average wages of $50,000 per year or more. The IRS will provide further information on how tax-exempt organizations can claim the healthcare credit.