HR 4234 IH
106th CONGRESS
2d Session
H. R. 4234
To amend the Internal Revenue Code of 1986 to allow individuals who
have attained age 65 a credit against income tax for certain drug and health
insurance expenses.
IN THE HOUSE OF REPRESENTATIVES
April 11, 2000
Mr. FOLEY 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 individuals who
have attained age 65 a credit against income tax for certain drug and health
insurance expenses.
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 `Prescription Drug Assistance Act of
2000'.
SEC. 2. CREDIT FOR CERTAIN DRUG AND HEALTH INSURANCE EXPENSES OF INDIVIDUALS
WHO HAVE ATTAINED AGE 65.
(a) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25A the following new section:
`SEC. 25B. CERTAIN DRUG AND HEALTH INSURANCE EXPENSES OF INDIVIDUALS WHO
HAVE ATTAINED AGE 65.
`(a) IN GENERAL- In the case of an eligible individual, there shall be
allowed as a credit against the tax imposed by this chapter an amount equal to
the qualified expenses of such individual for the taxable year.
`(1) DOLLAR LIMITATION- The credit allowed by this section shall not
exceed $500 ($1,000 in the case of a joint return filed by individuals both
of whom are eligible individuals).
`(2) LIMITATION BASED ON ADJUSTED GROSS INCOME- The amount of the credit
which would (but for this paragraph) be allowed under subsection (a) for the
taxable year shall be reduced (but not below zero) by an amount which bears
the same ratio to such amount of credit as--
`(i) the taxpayer's adjusted gross income for such taxable year,
over
`(ii) $60,000 ($120,000 in the case of a joint return), bears
to
`(B) $10,000 ($20,000 in the case of a joint return).
Any amount determined under the preceding sentence which is not a
multiple of $10 shall be rounded to the next lowest $10.
`(c) DEFINITIONS- For purposes of this section--
`(1) ELIGIBLE INDIVIDUAL- The term `eligible individual' means any
individual who has attained age 65 as of the close of the taxable
year.
`(2) QUALIFIED EXPENSES- The term `qualified expenses' means amounts
paid by the taxpayer during the taxable year for--
`(A) any drug which is prescribed for an eligible individual who is
the taxpayer or the taxpayer's spouse, and
`(B) coverage of an eligible individual who is the taxpayer or the
taxpayer's spouse under--
`(i) a medicare supplemental policy under section 1882 of the Social
Security Act which provides any coverage of prescription drugs,
or
`(ii) a Medicare+Choice plan under part C of title XVIII of such Act
which provides any coverage of prescription drugs.
`(d) DENIAL OF DOUBLE BENEFIT- The amounts otherwise taken into account
under sections 162(l) and 213 shall be reduced by the amount of the credit
allowed under this section.'
(b) CLERICAL AMENDMENT- The table of sections for subpart A of part IV of
subchapter A of chapter 1 of such Code is amended by inserting after the item
relating to section 25A the following new item:
`Sec. 25B. Certain drug and health insurance expenses of individuals who have
attained age 65.'
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
taxable years beginning after December 31, 2000.
END