[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2304 Introduced in House (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.
    ``(c) Special Rules.--
            ``(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.
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