As the deadline for filing extended 2010 tax year returns approaches, the IRS encourages small employers to verify whether they are eligible for the new Small Business Health Care Tax Credit. The credit is designed to help small businesses and tax-exempt organizations that primarily employ 25 or fewer workers with average income of $50,000 or less. Employers that pay at least half of the premiums for employee health insurance coverage under a qualifying arrangement may be eligible for the credit. For tax year 2010, eligible small businesses with no tax liability can carry back unused general business credits (including the small employer health care tax credit) five years, instead of the previous one year carryback period. Furthermore, businesses that locked into health insurance plan structures and contributions for 2010 (and so could not make any needed adjustments to qualify for the credit for 2010) may be eligible to claim the credit on 2011 or later year returns.