Tax Relief and Health Care Act of 2006
Public Law 109-432, as amended
Tax Relief and Health Care Act of 2006
432
116–260
Statute Compilation
United States House of Representatives
Office of the Legislative Counsel
text/xml
EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
GPO Statute Compilations USLM converter, version 20210527.1
2021-10-15
Gulf of Mexico Energy Security Act of 2006
Tax Relief and Health Care Act of 2006
African Investment Incentive Act of 2006
Andean Trade Preferences Extension Act
Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006
Health Opportunity Patient Empowerment Act of 2006
Medicare Improvements and Extension Act of 2006
Pam White Wilderness Act of 2006
Surface Mining Control and Reclamation Act Amendments of 2006
White Pine County Conservation, Recreation, and Development Act of 2006
9471
109
2006-12-20
Tax Relief and Health Care Act of 2006
[(Public Law 109-432)]
[As Amended Through P.L. 116–260, Enacted December 27, 2020]
[Currency: This publication is a compilation of the text of Public Law 109-432. It was last amended by the public law listed in the As Amended Through note above and below at the bottom of each page of the pdf version and reflects current law through the date of the enactment of the public law listed at https://www.govinfo.gov/app/collection/comps/]
[Note: While this publication does not represent an official version of any Federal statute, substantial efforts have been made to ensure the accuracy of its contents. The official version of Federal law is found in the United States Statutes at Large and in the United States Code. The legal effect to be given to the Statutes at Large and the United States Code is established by statute (1 U.S.C. 112, 204).]
AN ACTTo amend the Internal Revenue Code of 1986 to extend expiring provisions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
* * * * * * *
DIVISION B—MEDICARE AND OTHER HEALTH PROVISIONS
* * * * * * *
<num style="-uslm-dtd:enum" value="I">TITLE I—</num><heading style="-uslm-dtd:header">MEDICARE IMPROVED QUALITY AND PROVIDER PAYMENTS </heading>
<elided style="-uslm-dtd:omitted-text">* * * * * * *</elided>
<section style="-uslm-dtd:section" identifier="/us/sComp/109/432/dB/tI/s106" styleType="OLC">
<num style="-uslm-dtd:enum" value="106">SEC. 106. </num><heading style="-uslm-dtd:header">HOSPITAL MEDICARE REPORTS AND CLARIFICATIONS. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/109/432/dB/tI/s106/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t42/s1395ww">42 U.S.C. 1395ww note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">Correction of Mid-Year Reclassification Expiration.—</heading><content style="-uslm-dtd:text">Notwithstanding any other provision of law, in the case of a subsection (d) hospital (as defined for purposes of section 1886 of the Social Security Act (42 U.S.C. 1395ww)) with respect to which a reclassification of its wage index for purposes of such section would (but for this subsection) expire on March 31, 2007, such reclassification of such hospital shall be extended through March 31, 2012. The previous sentence shall not be effected in a budget-neutral manner.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/109/432/dB/tI/s106/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Revision of the Medicare Wage Index Classification System.—</heading>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s106/b/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Medpac report.—</heading>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/1/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><heading style="-uslm-dtd:header">In general.—</heading><content style="-uslm-dtd:text">The Medicare Payment Advisory Commission shall submit to Congress, by not later than June 30, 2007, a report on its study of the wage index classification system applied under Medicare prospective payment systems, including under section 1886(d)(3)(E) of the Social Security Act (42 U.S.C. 1395ww(d)(3)(E)). Such report shall include any alternatives the Commission recommends to the method to compute the wage index under such section.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/1/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><heading style="-uslm-dtd:header">Funding.—</heading><content style="-uslm-dtd:text">Out of any funds in the Treasury not otherwise appropriated, there are appropriated to the Medicare Payment Advisory Commission, $2,000,000 for fiscal year 2007 to carry out this paragraph.</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Proposal to revise the hospital wage index classification system.—</heading><chapeau style="-uslm-dtd:text">The Secretary of Health and Human Services, taking into account the recommendations described in the report under paragraph (1), shall include in the proposed rule published under section 1886(e)(5)(A) of the Social Security Act (42 U.S.C. 1395ww(e)(5)(A)) for fiscal year 2009 one or more proposals to revise the wage index adjustment applied under section 1886(d)(3)(E) of such Act (42 U.S.C. 1395ww(d)(3)(E)) for purposes of the Medicare prospective payment system for inpatient hospital services. Such proposal (or proposals) shall consider each of the following:</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">Problems associated with the definition of labor markets for purposes of such wage index adjustment.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">The modification or elimination of geographic reclassifications and other adjustments.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/C" styleType="OLC">
<num style="-uslm-dtd:enum" value="C">(C) </num><content style="-uslm-dtd:text">The use of Bureau of Labor Statistics data, or other data or methodologies, to calculate relative wages for each geographic area involved.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/D" styleType="OLC">
<num style="-uslm-dtd:enum" value="D">(D) </num><content style="-uslm-dtd:text">Minimizing variations in wage index adjustments between and within Metropolitan Statistical Areas and Statewide rural areas.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/E" styleType="OLC">
<num style="-uslm-dtd:enum" value="E">(E) </num><content style="-uslm-dtd:text">The feasibility of applying all components of the proposal to other settings, including home health agencies and skilled nursing facilities.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/F" styleType="OLC">
<num style="-uslm-dtd:enum" value="F">(F) </num><content style="-uslm-dtd:text">Methods to minimize the volatility of wage index adjustments, while maintaining the principle of budget neutrality in applying such adjustments.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/G" styleType="OLC">
<num style="-uslm-dtd:enum" value="G">(G) </num><content style="-uslm-dtd:text">The effect that the implementation of the proposal would have on health care providers and on each region of the country.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/H" styleType="OLC">
<num style="-uslm-dtd:enum" value="H">(H) </num><content style="-uslm-dtd:text">Methods for implementing the proposal, including methods to phase-in such implementation.</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s106/b/2/I" styleType="OLC">
<num style="-uslm-dtd:enum" value="I">(I) </num><content style="-uslm-dtd:text">Issues relating to occupational mix, such as staffing practices and any evidence on the effect on quality of care and patient safety and any recommendations for alternative calculations.</content>
</subparagraph>
</paragraph>
</subsection>
</section>
<elided style="-uslm-dtd:omitted-text">* * * * * * *</elided>
<section style="-uslm-dtd:section" identifier="/us/sComp/109/432/dB/tI/s119" styleType="OLC">
<num style="-uslm-dtd:enum" value="119">SEC. 119. </num><editorialNote style="-uslm-dtd:usc-reference" role="uscRef"><b>[</b><ref href="/us/usc/t26/s30A">26 U.S.C. 30A note</ref><b>]</b> </editorialNote><heading style="-uslm-dtd:header">AMERICAN SAMOA ECONOMIC DEVELOPMENT CREDIT. </heading>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/109/432/dB/tI/s119/a" styleType="OLC">
<num style="-uslm-dtd:enum" value="a">(a) </num><heading style="-uslm-dtd:header">In general.—</heading><chapeau style="-uslm-dtd:text">For purposes of section 30A of the Internal Revenue Code of 1986, a domestic corporation shall be treated as a qualified domestic corporation to which such section applies if—</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s119/a/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><chapeau style="-uslm-dtd:text">in the case of a taxable year beginning before January 1, 2012, such corporation—</chapeau>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s119/a/1/A" styleType="OLC">
<num style="-uslm-dtd:enum" value="A">(A) </num><content style="-uslm-dtd:text">is an existing credit claimant with respect to American Samoa, and</content>
</subparagraph>
<subparagraph style="-uslm-dtd:subparagraph" identifier="/us/sComp/109/432/dB/tI/s119/a/1/B" styleType="OLC">
<num style="-uslm-dtd:enum" value="B">(B) </num><content style="-uslm-dtd:text">elected the application of section 936 of the Internal Revenue Code of 1986 for its last taxable year beginning before January 1, 2006, and</content>
</subparagraph>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s119/a/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">in the case of a taxable year beginning after December 31, 2011, such corporation meets the requirements of subsection (e).</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/109/432/dB/tI/s119/b" styleType="OLC">
<num style="-uslm-dtd:enum" value="b">(b) </num><heading style="-uslm-dtd:header">Special Rules for Application of Section.—</heading><chapeau style="-uslm-dtd:text">The following rules shall apply in applying section 30A of the Internal Revenue Code of 1986 for purposes of this section:</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s119/b/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><heading style="-uslm-dtd:header">Amount of Credit.—</heading><content style="-uslm-dtd:text">Notwithstanding section 30A(a)(1) of such Code, the amount of the credit determined under section 30A(a)(1) of such Code for any taxable year shall be the amount determined under section 30A(d) of such Code, except that section 30A(d) shall be applied without regard to paragraph (3) thereof.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s119/b/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><heading style="-uslm-dtd:header">Separate application.—</heading><content style="-uslm-dtd:text">In applying section 30A(a)(3) of such Code in the case of a corporation treated as a qualified domestic corporation by reason of this section, section 30A of such Code (and so much of section 936 of such Code as relates to such section 30A) shall be applied separately with respect to American Samoa.</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s119/b/3" styleType="OLC">
<num style="-uslm-dtd:enum" value="3">(3) </num><heading style="-uslm-dtd:header">Foreign tax credit allowed.—</heading><content style="-uslm-dtd:text">Notwithstanding section 30A(e) of such Code, the provisions of section 936(c) of such Code shall not apply with respect to the credit allowed by reason of this section.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/109/432/dB/tI/s119/c" styleType="OLC">
<num style="-uslm-dtd:enum" value="c">(c) </num><heading style="-uslm-dtd:header">Definitions.—</heading><content style="-uslm-dtd:text">For purposes of this section, any term which is used in this section which is also used in section 30A or 936 of such Code shall have the same meaning given such term by such section 30A or 936.</content>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/109/432/dB/tI/s119/d" styleType="OLC">
<num style="-uslm-dtd:enum" value="d">(d) </num><heading style="-uslm-dtd:header">Application of Section.—</heading><chapeau style="-uslm-dtd:text">Notwithstanding section 30A(h) or section 936(j) of such Code, this section (and so much of section 30A and section 936 of such Code as relates to this section) shall apply—</chapeau>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s119/d/1" styleType="OLC">
<num style="-uslm-dtd:enum" value="1">(1) </num><content style="-uslm-dtd:text">in the case of a corporation that meets the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 16 taxable years of such corporation which begin after December 31, 2006, and before January 1, 2022, and</content>
</paragraph>
<paragraph style="-uslm-dtd:paragraph" identifier="/us/sComp/109/432/dB/tI/s119/d/2" styleType="OLC">
<num style="-uslm-dtd:enum" value="2">(2) </num><content style="-uslm-dtd:text">in the case of a corporation that does not meet the requirements of subparagraphs (A) and (B) of subsection (a)(1), to the first 10 taxable years of such corporation which begin after December 31, 2011, and before January 1, 2022.<quotedContent style="-uslm-dtd:quoted-block"><continuation style="-uslm-dtd:quoted-block-continuation-text" role="subsection">“In the case of a corporation described in subsection (a)(2), the Internal Revenue Code of 1986 shall be applied and administered without regard to the amendments made by section 401(d)(1) of the Tax Technical Corrections Act of 2018.”</continuation></quotedContent>.</content>
</paragraph>
</subsection>
<subsection style="-uslm-dtd:subsection" identifier="/us/sComp/109/432/dB/tI/s119/e" styleType="OLC">
<num style="-uslm-dtd:enum" value="e">(e) </num><heading style="-uslm-dtd:header">Qualified Production Activities Income Requirement.—</heading><content style="-uslm-dtd:text">A corporation meets the requirement of this subsection if such corporation has qualified production activities income, as defined in subsection (c) of section 199 of the Internal Revenue Code of 1986 (as in effect before its repeal), determined by substituting “<quotedText style="-uslm-dtd:quote">American Samoa</quotedText>” for “<quotedText style="-uslm-dtd:quote">the United States</quotedText>” each place it appears in paragraphs (3), (4), and (6) of such subsection (c), for the taxable year.</content>
</subsection>
</section>
* * * * * * *