To amend the Internal Revenue Code of 1986 to provide a tax credit for health insurance costs of eligible disaster relief recipients.

Amends the Internal Revenue Code to qualify disaster relief recipients living or working in a federally-declared disaster area for the tax credit for health insurance costs and for advance payments of such credit.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4086 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4086

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
     health insurance costs of eligible disaster relief recipients.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 19, 2005

  Mr. Jindal introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
     health insurance costs of eligible disaster relief recipients.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CREDIT FOR HEALTH INSURANCE COSTS OF ELIGIBLE DISASTER 
              RELIEF RECIPIENTS.

    (a) In General.--Section 35 of the Internal Revenue Code of 1986 
(relating to health insurance costs of eligible individuals) is amended 
by adding at the end the following new subsection:
    ``(h) Application to Disaster Victims.--
            ``(1) In general.--An eligible disaster relief recipient 
        shall be treated as an eligible individual for purposes of this 
        section and section 7527.
            ``(2) Special rules.--In the case of an eligible disaster 
        relief recipient, for purposes of this section and section 
        7527--
                    ``(A) 12 month limitation.--Only the first 12 
                months that an individual is an eligible disaster 
                relief recipient shall be treated as eligible coverage 
                months.
                    ``(B) Qualified health insurance.--Subject to 
                subsection (e)(3), the term `qualified health 
                insurance' means--
                            ``(i) any group or individual health 
                        insurance plan or policy under which the 
                        individual and any qualifying family members 
                        taken into account under this section were 
                        covered during the 7-day period described in 
                        paragraph (3) with respect to such eligible 
                        disaster relief recipient, and
                            ``(ii) in the case of the subsequent non-
                        renewal, cancellation, or termination (other 
                        than voluntarily by the individual), of any 
                        plan or policy described in clause (i), any 
                        successor or conversion plan or policy offered 
                        by an insurer, a plan sponsor, or a State 
                        program, to the individual in accordance with 
                        any applicable provision of Federal or State 
                        law.
                    ``(C) Qualified health insurance costs credit 
                eligibility certificate.--The statement described in 
                section 7527(d) shall be treated as a qualified health 
                insurance costs credit eligibility certificate only if 
                certified by the Director of the Federal Emergency 
                Management Agency (or by any other person or entity 
                designated by the Secretary).
            ``(3) Eligible disaster relief recipient.--For purposes of 
        this subsection, the term `eligible disaster relief recipient' 
        means any individual--
                    ``(A) whose primary residence, business, or primary 
                worksite was located in a qualified disaster area, at 
                any time during the 7-day period ending on the date 
                that the President makes the determination described in 
                paragraph (4) with respect to such area, or
                    ``(B) whose employer conducted an active trade or 
                business in a qualified disaster area during such 
                period and, because of damage to the employer caused by 
                the disaster, subsequently terminated the individual's 
                employment.
            ``(4) Qualified disaster area.--For purposes of this 
        subsection, the term `qualified disaster area' means any area--
                    ``(A) with respect to which a major disaster has 
                been declared by the President under section 401 of the 
                Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act, and
                    ``(B) which is determined by the President to 
                warrant individual or individual and public assistance 
                from the Federal Government under the such Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending on or after August 28, 2005.
                                 <all>