Gov. Bob Riley is scheduled to sign a law Tuesday that provides tax incentives to help small businesses afford health insurance for employees.

The incentive is part of the governor's Plan 2010 agenda that was passed by the Alabama Legislature during the special session in May.

Under the legislation, owners of small businesses with fewer than 25 employees will be able to deduct 150 percent of the amount they pay for health insurance premiums from their state income taxes. Employees of these small businesses who earn less than $50,000 a year will also be able to deduct 150 percent of the amount they contribute toward their health insurance plans from their income taxes.

The proposal will help small businesses lower their health care costs and also encourage more small firms to offer health coverage to their workers, a news release said.

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