H.R. 4324 (112th): Small Business Employee Health Insurance Credit Expansion Act of 2012

112th Congress, 2011–2013. Text as of Mar 29, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

2d Session

H. R. 4324

IN THE HOUSE OF REPRESENTATIVES

March 29, 2012

(for himself and Mr. McDermott) 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 expand the credit for employee health insurance expenses of small employers.

1.

Short title

This Act may be cited as the Small Business Employee Health Insurance Credit Expansion Act of 2012.

2.

Expansion of credit for employee health insurance expenses of small employers

(a)

Increase in maximum number of eligible full-Time employees

Subparagraph (A) of section 45R(d)(1) of the Internal Revenue Code of 1986 is amended by striking 25 full-time equivalent employees and inserting 50 full-time equivalent employees.

(b)

Modification of phaseout of credit amount

(1)

In general

Subsection (c) of section 45R of such Code is amended to read as follows:

(c)

Phaseout of credit amount based on number of employees and average wages

(1)

In general

The amount of the credit determined under subsection (b) shall be adjusted by multiplying—

(A)

the amount determined under subsection (b), by

(B)

the product of the amount determined under paragraph (2) and the amount determined under paragraph (3).

(2)

Employee adjustment

The amount determined under this paragraph is a fraction (not more than 1) the numerator of which is the number by which the total number of full-time equivalent employees of the eligible employer is less than 50 and the denominator of which is 30.

(3)

Wages adjustment

The amount determined under this paragraph is a fraction (not more than 1) the numerator of which is the amount by which the average annual wages of the eligible employer is less than twice the dollar amount in effect under subsection (d)(3)(B) and the denominator of which is such dollar amount.

.

(2)

Conforming amendments

(A)

Subsection (a) of section 45R of such Code is amended by inserting , as adjusted under subsection (c) after the amount determined under subsection (b).

(B)

Subparagraph (B) of section 45R(d)(3) of such Code is amended by striking subsection (c)(2) and inserting subsection (c)(3).

(c)

Repeal of uniformity requirement for contributions

Paragraph (4) of section 45R(d) of such Code is amended—

(1)

by striking in an amount equal to a uniform percentage (not less than 50 percent) of the premium cost of the qualified health plan, and

(2)

by inserting (in an amount not less than 50 percent of the premium cost of the qualified health plan) after nonelective contribution.

(d)

Repeal of limitation based on state average premiums

(1)

In general

Subsection (b) of section 45R of such Code is amended to read as follows:

(b)

Health insurance credit amount

Subject to subsection (c), the amount determined under this subsection with respect to any eligible small employer is equal to 50 percent (35 percent in the case of a tax-exempt eligible small employer) of 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.

.

(2)

Conforming amendment

Paragraph (2) of section 45R(g) of such Code is amended by inserting and at the end of subparagraph (A), by striking , and at the end of subparagraph (B) and inserting a period, and by striking subparagraph (C).

(e)

Repeal of 2-Year credit limit

(1)

Subsection (a) of section 45R of such Code is amended by striking in the credit period.

(2)

Subsection (e) of section 45R of such Code is amended by striking paragraph (2) and by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively.

(3)

Subsection (g) of section 45R of such Code is amended by striking paragraph (1) and by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively.

(4)

Subsection (i) of section 45R of such Code is amended by striking the avoidance of the 2-year limit on the credit period through the use of successor entities and.

(f)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2011.