HR 2304 IH
106th CONGRESS
1st Session
H. R. 2304
To amend the Internal Revenue Code of 1986 to allow employers who
maintain a self-insured health plan for their employees a credit against income
tax for a portion of the cost paid for providing health coverage for their
employees.
IN THE HOUSE OF REPRESENTATIVES
June 22, 1999
Mr. MALONEY of Connecticut 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 allow employers who
maintain a self-insured health plan for their employees a credit against income
tax for a portion of the cost paid for providing health coverage for their
employees.
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 `Health Care Benefits Financial Protection
Act of 1999'.
SEC. 2. CREDIT TO EMPLOYERS MAINTAINING SELF-INSURED HEALTH PLAN FOR COST OF
PROVIDING HEALTH COVERAGE FOR EMPLOYEES.
(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business related credits) is
amended by adding at the end the following new section:
`SEC. 45D. CREDIT TO EMPLOYERS MAINTAINING SELF-INSURED HEALTH PLAN FOR COST
OF PROVIDING HEALTH COVERAGE FOR EMPLOYEES.
`(a) GENERAL RULE- For purposes of section 38, in the case of an eligible
employer, the health coverage cost credit determined under this section for
the taxable year is an amount equal to 3 percent of the amount paid or
incurred by the taxpayer during the taxable year for health coverage for such
employer's employees and their spouses and dependents.
`(b) ELIGIBLE EMPLOYER- For purposes of this section, the term `eligible
employer' means any employer who, throughout the taxable year, maintains a
group health plan for such employer's employees and their spouses and
dependents which is not provided through insurance.
`(1) ONLY NONGOVERNMENTAL COVERAGE TAKEN INTO ACCOUNT- Amounts paid or
incurred for coverage under Medicare or any other government program shall
not be taken into account under subsection (a).
`(2) DENIAL OF DOUBLE BENEFIT- No deduction shall be allowed for that
portion of the amount taken into account under subsection (a) (which is
otherwise allowable as a deduction for the taxable year) equal to the amount
of the credit determined for such taxable year under subsection (a).'
(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT-
(1) IN GENERAL- Subsection (b) of section 38 of such Code is amended by
striking `plus' at the end of paragraph (11), by striking the period at the
end of paragraph (12) and inserting `, plus', and by adding at the end the
following new paragraph:
`(13) in the case of a eligible employer (as defined in section 45D(b)),
the health coverage cost credit determined under section 45D(a).'
(2) DENIAL OF CARRYBACKS TO PRE-EFFECTIVE DATE YEARS- Subsection (d) of
section 39 of such Code is amended by adding at the end the following new
paragraph:
`(8) NO CARRYBACK OF SECTION 45D CREDIT BEFORE ENACTMENT- No portion of
the unused business credit for any taxable year which is attributable to the
health coverage cost credit determined under section 45D may be carried back
to a taxable year beginning on or before the date of the enactment of
section 45D.'
(c) CLERICAL AMENDMENT- The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding at the end the
following new item:
`Sec. 45D. Credit to employers maintaining self-insured health plan for cost
of providing health coverage for employees.'
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after the date of the enactment of this Act.
END