[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1600 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1600

     To amend the Internal Revenue Code of 1986 to allow medicare 
 beneficiaries a refundable credit against income tax for the purchase 
                   of outpatient prescription drugs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 31, 2001

  Mr. Dayton introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the Internal Revenue Code of 1986 to allow medicare 
 beneficiaries a refundable credit against income tax for the purchase 
                   of outpatient prescription drugs.

    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 ``Rx Relief for Seniors Act''.

SEC. 2. REFUNDABLE CREDIT FOR OUTPATIENT PRESCRIPTION DRUGS FOR 
              MEDICARE BENEFICIARIES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. OUTPATIENT PRESCRIPTION DRUGS FOR MEDICARE BENEFICIARIES.

    ``(a) In General.--In the case of an eligible individual, there 
shall be allowed as a credit against the tax imposed by this subtitle 
an amount equal to the amount paid during the taxable year, not 
compensated for by insurance or otherwise, for qualified outpatient 
prescription drugs for such individual.
    ``(b) Limitation.--The amount allowed as a credit under subsection 
(a) to the taxpayer for the taxable year shall not exceed $500 ($1,000 
in the case of a joint return by 2 eligible individuals).
    ``(c) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means, with respect to any taxable year, any 
individual entitled to any benefits under title XVIII of the Social 
Security Act during such taxable year.
    ``(d) Qualified Outpatient Prescription Drugs.--For purposes of 
this section, the term `qualified outpatient prescription drugs' means, 
with respect to any taxable year, any prescription drug the cost of 
which is not covered under title XVIII of the Social Security Act 
during such taxable year.
    ``(e) Special Rules.--
            ``(1) Coordination with medical expense deduction.--The 
        amount which would (but for this paragraph) be taken into 
        account by the taxpayer under section 213 for the taxable year 
        shall be reduced by the credit (if any) allowed by this section 
        to the taxpayer for such year.
            ``(2) Application of section.--This section shall not apply 
        to any taxable year beginning after December 31, 2001.''.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 35 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by striking the last item and inserting the 
        following new items:

                              ``Sec. 35. Outpatient prescription drugs 
                                        for medicare beneficiaries.
                              ``Sec. 36. Overpayments of tax.''.
    (c) Notification of Credit.--The Secretary of Health and Human 
Services shall notify each individual who is or becomes entitled to 
benefits under title XVIII of the Social Security Act in 2001 of the 
individual's eligibility for the refundable credit for outpatient 
prescription drugs under section 35 of the Internal Revenue Code of 
1986 (as added by this section).
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
                                 <all>