[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4234 Introduced in House (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.
    ``(b) Limitations.--
            ``(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--
                    ``(A) the excess of--
                            ``(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.
                                 <all>