Many small businesses and tax-exempt organizations that provide health insurance coverage to their employees now qualify for a special tax credit, according to the Internal Revenue Service. The tax credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of the single health insurance premium for their employees. It is generally available to employers that have fewer than 25 full time employees paying wages averaging less than $50,000 per employee per year.