Amends the Internal Revenue Code to revise the tax credit for health insurance costs to: (1) extend such credit to employees of companies in bankruptcy reorganization; (2) decrease from 55 to 50 the age at which Pension Benefit Guaranty Corporation pension recipients are eligible for such credit; (3) repeal the three-month existing coverage requirement; and (4) extend the credit to spouses of certain individuals eligible for such credit.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4385 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 4385
To amend the Internal Revenue Code of 1986 to provide that employees of
certain companies seeking bankruptcy protection are eligible for the
health coverage tax credit, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 17, 2005
Mr. Strickland (for himself, Mr. Ryan of Ohio, and Mr. Brown of Ohio)
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 that employees of
certain companies seeking bankruptcy protection are eligible for the
health coverage tax credit, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. ELIGIBILITY OF EMPLOYEES OF CORPORATIONS IN BANKRUPTCY FOR
HEALTH COVERAGE TAX CREDIT.
(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 Eligible Bankrupt Business Employees.--
``(1) In general.--An eligible bankrupt business employee
shall be treated as an eligible individual for purposes of this
section and section 7527.
``(2) Employer provided health care.--In the case of an
eligible bankrupt business employee (and any qualifying family
member of such employee), for purposes of this section and
section 7527--
``(A) the term `qualified health insurance' shall
include coverage under a group health plan that is
available through the employment of such employee by
the corporation referred to in paragraph (3)(A), and
``(B) subsection (f)(1) shall not apply with
respect to such coverage.
``(3) Eligible bankrupt business employee.--For purposes of
this subsection--
``(A) In general.--The term `eligible bankrupt
business employee' means any individual who is employed
by a corporation on the date that such corporation
becomes a debtor in a case under chapter 11 of title
11, United States Code.
``(B) Time limitations.--
``(i) In general.--An individual shall be
treated as an eligible bankrupt business
employee only with respect to the period of
months beginning with the month which includes
the date described in subparagraph (A) and
ending with the month which includes the
earliest of--
``(I) the date that such debtor
receives a discharge in such case,
``(II) the date that such case is
converted to a case under chapter 7 of
such title, or
``(III) the date that such case is
dismissed.
``(ii) 2 year limitation.--An individual
shall not be treated as an eligible bankrupt
business employee with respect to any month
beginning after the 2-year period beginning on
the date described in subparagraph (A).
``(C) Coordination with taa and pbgc recipient
status.--An individual shall not be treated as an
eligible bankrupt business employee with respect to any
month if such individual is an eligible TAA recipient,
an eligible alternative TAA recipient, or an eligible
PBGC pension recipient with respect to such month.''.
(b) Effective Date.--The amendment made by this section shall apply
to months beginning after the date of the enactment of this Act, with
respect to cases commenced under title 11, United State Code, before,
on, or after such date.
SEC. 2. OTHER HEALTH CARE TAX CREDIT IMPROVEMENTS.
(a) Decrease in Age Eligibility Requirement for PBGC Pension
Recipients.--Subparagraph (A) of section 35(c)(4) of the Internal
Revenue Code of 1986 (defining eligible PBGC pension recipient) is
amended by striking ``age 55'' and inserting ``age 50''.
(b) Repeal of 3 Month Requirement of Existing Coverage.--Clause (i)
of section 35(e)(2)(B) of such Code (defining qualifying individual) is
amended by striking ``9801(c)'' and inserting ``9801(c) (prior to the
employment separation necessary to attain the status of an eligible
individual)''.
(c) Eligibility of Spouse of Certain Individuals Entitled to
Medicare.--Subsection (b) of section 35 of such Code (defining eligible
coverage month) is amended by adding at the end the following new
paragraph:
``(3) Special rule for spouse of individual entitled to
medicare.--Any month which would be an eligible coverage month
with respect to a taxpayer (determined without regard to
subsection (f)(2)(A)) shall be an eligible coverage month for
any spouse of such taxpayer.''.
(d) Effective Date.--The amendments made by this section shall
apply to months beginning after the date of the enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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