True or False: Employers who participate in SHOP with 25 or fewer FTEs may qualify for a federal tax credit.

Employers who participate in the Small Business Health Options Program (SHOP) with 25 or fewer full-time equivalent (FTE) employees may qualify for a federal tax credit. This tax credit is designed to assist small businesses in providing health insurance to their employees and is available to those who meet specific criteria, including the size of their workforce and the average wages paid to employees.

To be eligible, businesses must offer coverage through the SHOP marketplace and pay at least 50% of the premiums for their employees. The tax credit can cover up to 50% of premiums for small businesses (or up to 35% for tax-exempt organizations) that qualify, making it an important incentive for small employers to offer health insurance.

The other options do not accurately reflect the eligibility for the federal tax credit based on the provisions outlined in the Affordable Care Act related to the SHOP program.