Tax credit helps Mississippi's small businesses - MSNewsNow.com - Jackson, MS

Tax credit helps Mississippi's small businesses

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By Ashley Conroy - email

JACKSON, MS (WLBT) - David Moore and Ben Hubbard run a small software development company in the Capital City.  They do software development with Google Earth.

Moore said Wednesday Navigus has been in business for about two years and pride their work on innovation and creativity, but for the two years they've been in operation, they admitted that the lack of health coverage for their employees is a downside.

"We haven't offered health insurance for any of our employees," said Navigus President David Moore.

Vice President Ben Hubbard agreed.  "It's something we want to do, but if we did it now, we would go bankrupt," he said.

Dr. Lurlene Irvin, director of the Small Business Development Center in Jackson, said many of the center's clients deal with similar circumstances.

"Health care is certainly one of the major expenses that is one of the first ones to leave, so they tend not to fund health insurance for that reason," said Dr. Irvin.

But after President Barack Obama signed the health care overhaul into law, consumer reports show over 34-thousand small Mississippi businesses could be eligible for a tax credit.

Businesses would have to employ fewer than 25 people whose average wages are below    50-thousand dollars.

Dr. Irvin said the steps for small businesses to receive this credit are about as simple as going shopping.

"It's almost as simple as having a cart full of tax credits and deductions, and you get to the IRS window, and Obama hands you a coupon for 25-percent off.  It's almost that easy," she said.

Moore said would now like to help his employees get a piece of these benefits.  "I didn't know about the tax credit until today, and it sounds like a great thing."

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