Small Business Tax Credit Accessibility Act - Expresses the sense of the Senate that the Obama Administration should work to make the small employer health care insurance tax credit more accessible for small employers.
Amends the Internal Revenue Code, with respect to the small employer health care insurance tax credit, to: (1) revise the definition of "eligible small employer" to mean an employer with not more than 50 (currently, 25) full-time employees; (2) modify the phaseout formula for such credit to base such phaseout on number of employees and average annual wages; (3) allow a 35% credit in 2014 to small employers who purchase health care coverage outside of the Small Business Health Option Program (SHOP exchange); (4) extend from two to three consecutive taxable years the period during which an employer may claim such credit; (5) eliminate the requirement that employers contribute the same percentage of cost of each employee's health insurance and the cap limiting eligible employer contributions to average premiums paid to a state health insurance exchange; and (6) make such credit available to dependents of a small employer.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2069 Introduced in Senate (IS)]
113th CONGRESS
2d Session
S. 2069
To amend the Internal Revenue Code of 1986 to expand and modify the
credit for employee health insurance expenses of small employers.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
February 27, 2014
Mr. Begich (for himself, Mr. Franken, Mr. Warner, Mrs. Shaheen, Mr.
Walsh, Ms. Hirono, and Ms. Landrieu) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to expand and modify the
credit for employee health insurance expenses of small employers.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Small Business Tax Credit
Accessibility Act''.
SEC. 2. SENSE OF THE SENATE.
It is the sense of the Senate that the Obama administration should
work to make the small business health care tax credit under section
45R of the Internal Revenue Code of 1986 more accessible for small
employers.
SEC. 3. EXPANSION AND MODIFICATION OF CREDIT FOR EMPLOYEE HEALTH
INSURANCE EXPENSES OF SMALL EMPLOYERS.
(a) Expansion of Definition of Eligible Small Employer.--
Subparagraph (A) of section 45R(d)(1) of the Internal Revenue Code of
1986 is amended by striking ``25'' and inserting ``50''.
(b) Amendment to Phaseout Determination.--Subsection (c) of section
45R of the Internal Revenue Code of 1986 is amended to read as follows:
``(c) Phaseout of Credit Amount Based on Number of Employees and
Average Wages.--The amount of the credit determined under subsection
(b) (without regard to this subsection) shall be adjusted (but not
below zero) by multiplying such amount by the product of--
``(1) the lesser of--
``(A) a fraction the numerator of which is the
excess (if any) of 50 over the total number of full-
time equivalent employees of the employer and the
denominator of which is 30, and
``(B) 1, and
``(2) the lesser of--
``(A) a fraction the numerator of which is the
excess (if any) of--
``(i) the dollar amount in effect under
subsection (d)(3)(B) for the taxable year,
multiplied by 2, over
``(ii) the average annual wages of the
employer for such taxable year, and
the denominator of which is the dollar amount so in
effect under subsection (d)(3)(B), and
``(B) 1.''.
(c) Partially Phased Out Credit Allowed for Insurance Outside an
Exchange.--
(1) In general.--Section 45R of the Internal Revenue Code
of 1986 is amended by redesignating subsections (h) and (i) as
subsections (i) and (j), respectively, and by inserting after
subsection (g) the following new subsection:
``(h) Partially Phased Out Credit Allowed for Insurance Outside an
Exchange for 2014.--
``(1) In general.--If an eligible small employer offers to
its employees in a manner other than through an Exchange a
health plan that meets the requirements of paragraph (2), the
following modifications shall apply with respect to a taxable
year beginning in 2014:
``(A) Qualified health plan.--This section and
section 280C(h) shall be applied for such taxable year
by treating such plan as a qualified health plan.
``(B) Reduced credit percentage.--Subsection (b)
shall be applied--
``(i) by substituting `25 percent' for `35
percent',
``(ii) by substituting `35 percent' for `50
percent', and
``(iii) without regard to `through an
Exchange' in paragraph (1) thereof.
``(C) Contribution arrangements.--Subsection (d)(4)
shall be applied without regard to `through an
exchange'.
``(D) Credit period.--
``(i) In general.--The credit under this
section shall be determined without regard to
whether such taxable year is in a credit
period.
``(ii) Year taken into account as portion
of credit period in subsequent years.--For
purposes of applying this section to taxable
years beginning after 2014 in which the
employer offers a qualified health plan
(without regard to subparagraph (A)) to its
employees through an Exchange, subsection
(e)(2) shall be applied by substituting `2-
consecutive-taxable' for `3-consecutive-
taxable'.
``(2) Requirements.--A health plan meets the requirements
of this paragraph if such plan--
``(A) provides the essential health benefits
package described in section 1302(a) of the Patient
Protection and Affordable Care Act, and
``(B) is offered by a health insurance issuer
that--
``(i) is licensed and in good standing to
offer health insurance coverage in each State
in which such issuer offers health insurance
coverage, and
``(ii) if such issuer offers health plans
through an Exchange, agrees to charge the same
premium rate for each qualified health plan of
the issuer without regard to whether the plan
is offered through an Exchange or whether the
plan is offered directly from the issuer or
through an agent.''.
(2) Conforming amendment.--Section 6055(b)(2)(C) of such
Code is amended by striking ``Exchange'' and inserting
``Exchange (or a plan with respect to which a credit is allowed
under section 45R by reason of subsection (h) thereof)''.
(d) Extension of Credit Period.--Paragraph (2) of section 45R(e) of
the Internal Revenue Code of 1986 is amended by striking ``2-
consecutive-taxable'' and inserting ``3-consecutive-taxable''.
(e) Average Annual Wage Limitation.--Subparagraph (B) of section
45R(d)(3) of the Internal Revenue Code of 1986 is amended to read as
follows:
``(B) Dollar amount.--For purposes of paragraph
(1)(B) and subsection (c)(2), the dollar amount in
effect under this paragraph is the amount equal to 110
percent of the poverty line (within the meaning of
section 36B(d)(3)) for a family of 4.''.
(f) Elimination of Uniform Percentage Contribution Requirement.--
Paragraph (4) of section 45R(d) of the Internal Revenue Code of 1986 is
amended by striking ``a uniform percentage (not less than 50 percent)''
and inserting ``at least 50 percent''.
(g) Elimination of Cap Relating to Average Local Premiums.--
Subsection (b) of section 45R of the Internal Revenue Code of 1986 is
amended by striking ``the lesser of'' and all that follows and
inserting ``the aggregate amount of nonelective contributions the
employer made on behalf of its employees during the taxable year under
the arrangement described in subsection (d)(4) for premiums for
qualified health plans offered by the employer to its employees through
an Exchange.''.
(h) Credit Availability for Family Members in Certain Cases.--
Clause (iv) of section 45R(e)(1)(A) of the Internal Revenue Code of
1986 is amended to read as follows:
``(iv) any individual who is a spouse or
dependent (within the meaning of section 152)
of an individual described in clause (i), (ii),
or (iii).''.
(i) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after
December 31, 2013.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
Llama 3.2 · runs locally in your browser
Ask anything about this bill. The AI reads the full text to answer.
Enter to send · Shift+Enter for new line