[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3601 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 3601
To amend the Internal Revenue Code of 1986 to protect the health
benefits of steel industry retirees by expanding the availability of
the refundable tax credit to the health insurance costs paid by former
employers.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2003
Mr. English (for himself and Mr. Cardin) 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 protect the health
benefits of steel industry retirees by expanding the availability of
the refundable tax credit to the health insurance costs paid by former
employers.
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 ``Steel Industry Retiree Benefits
Protection Act of 2003''.
SEC. 2. EXTENSION OF REFUNDABLE CREDIT TO FORMER EMPLOYERS FOR HEALTH
INSURANCE PAYMENTS FOR CERTAIN STEEL INDUSTRY RETIREES.
(a) In General.--Subsection (a) of section 35 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(a) In General.--
``(1) Credit allowed to eligible individuals.--In the case
of an individual, there shall be allowed as a credit against
the tax imposed by subtitle A an amount equal to 65 percent of
the amount paid by the taxpayer for coverage of the taxpayer
and qualifying family members under qualified health insurance
for eligible coverage months beginning in the taxable year.
``(2) Credit allowed for payments for eligible steel
industry retirees.--In the case of a qualified steel company,
there shall be allowed as a credit against the tax imposed by
subtitle A an amount equal to 65 percent of the amount paid
during the taxable year by the qualified steel company for
qualifying coverage of an eligible steel industry retiree and
qualifying family members under qualified health insurance.
For purposes of paragraphs (1) and (2), amounts paid for coverage shall
not include any premiums paid for the Medicare supplemental insurance
program established under part B of title XVIII of the Social Security
Act.''.
(b) Qualifying Coverage.--Subsection (g) of section 35 of such Code
(relating to special rules) is amended by redesignating paragraph (9)
as paragraph (10) and inserting after paragraph (8) the following new
paragraph:
``(9) Qualifying coverage.--For purposes of subsection
(a)(2)--
``(A) In general.--Coverage shall not be treated as
qualifying coverage unless at least 50 percent of the
cost of such coverage for all eligible steel industry
retirees who are retired from the applicable qualified
steel company, and qualifying family members,
determined on a combined basis, for such taxable year
is paid or incurred by such qualified steel company.
``(B) Special rule relating to collective
bargaining.--Subparagraph (A) may be satisfied
separately with respect to coverage provided to
eligible steel industry retirees pursuant to a
collective bargaining agreement.''.
(c) Definition of Eligible Steel Industry Retiree.--
(1) In general.--Subsection (c) of section 35 of such Code
is amended by adding at the end the following new paragraph:
``(5) Eligible steel industry retiree.--
``(A) In general.--The term `eligible steel
industry retiree' means, with respect to any month, any
individual who--
``(i) is a retiree of a qualified steel
company, and
``(ii) is receiving retiree health benefits
in accordance with an employee benefit plan
(within the meaning of section 3 (3) of the
Employee Retirement Income Security Act of
1974) which is established, maintained, or
contributed to by the retiree's former employer
and is in effect on or after January 1, 2000,
or is no longer receiving such benefits as a
result of the termination of coverage under
such benefit plan on or after January 1, 2000,
pursuant to an order of bankruptcy court, by
operation of bankruptcy law, or by agreement
with an authorized representative as provided
in section 1114 of title 11, United States
Code.
``(B) Retiree.--For purposes of this paragraph, the
term `retiree' means, with respect to a qualified steel
company, an individual (including any eligible
surviving spouse of an individual) who has met any
years of service or disability requirements under an
employee benefit plan described in subparagraph (A)(ii)
which are necessary to receive retiree health benefits
under the plan, and at least 50 percent of whose years
of service were performed in the United States on
behalf of a qualified steel company.
``(C) Qualified steel company.--The term `qualified
steel company' means--
``(i) a person who was engaged on or before
January 1, 2003, in--
``(I) the production or manufacture
of a steel mill product,
``(II) the mining or processing of
iron ore or beneficiated iron ore
products, or
``(III) the production of coke for
use in a steel mill product, or
``(ii) a labor organization that, in the
aggregate at one or more qualified steel
companies, represents at least 10,000
employees.
``(D) Qualified steel company.--The term `qualified
steel company' includes any person who, on or before
January 1, 2003, was engaged in the transportation of
any steel product or iron ore products solely or
principally for another qualified steel company
described in the preceding sentence, but only if such
person and such other person bear a relationship to
each other specified in section 267(b).''.
(2) Conforming amendments.--
(A) Paragraph (1) of section 35(c) of such Code is
amended by striking ``and'' at the end of subparagraph
(B), by striking the period at the end of subparagraph
(C) and inserting ``, and'', and by adding the
following new subparagraph:
``(D) an eligible steel industry retiree.''.
(B) Paragraph (1) of section 35(d) of such Code is
amended--
(i) in subparagraph (A) by inserting ``, or
the eligible steel industry retiree's,'' after
``taxpayer's'', and
(ii) in subparagraph (B) by inserting ``or
the eligible steel industry retiree'' after
``taxpayer''.
(d) Addition of Steel Retiree Health Benefits to Definition of
Qualified Health Insurance.--Paragraph (1) of section 35(e) of such
Code is amended by adding at the end the following new subparagraphs:
``(K) Coverage under an employee benefit plan of a
qualified steel company or coverage funded by a steel
industry retiree benefits health trust.
``(L) In the case of an eligible steel industry
retiree, coverage under a medicare supplemental policy
(as defined in section 1882(g)(1) of the Social
Security Act), Medicare+Choice plan (as defined in part
C of title XVIII of such Act), and similar plans.''.
(e) Exception From Specified Coverage Rule for Steel Industry
Retirees.--Subsection (f) of section 35 of such Code is amended by
adding at the end the following flush sentence: ``Paragraph (2) shall
not apply in the case of a credit under this section otherwise
allowable to an eligible steel industry retiree and qualifying family
members of such retiree.''.
(f) Special Rule for Qualified Steel Company Payments to a Steel
Industry Retiree Health Benefits Trust.--Subsection (g) of section 35
of such Code, as amended by subsection (b), is further amended by
adding at the end the following new paragraph:
``(10) Treatment of payments by a qualified steel company
to a steel industry retiree health benefits trust.--For
purposes of this section--
``(A) In general.--Amounts paid by a qualified
steel company to a steel industry retiree health
benefits trust shall be treated as amounts paid for
qualifying coverage for purposes of subsection (a)(2)
(determined without regard to paragraph (9)).
``(B) Steel industry retiree health benefits
trust.--The term `steel industry retiree health
benefits trust' means a trust established for the
purpose of paying health and death benefits to eligible
steel industry retirees and qualifying family members
either pursuant to section 501(c)(9) or in connection
with the acquisition by a qualified steel company of
another qualified steel company or of a substantial
portion of the assets of another qualified steel
company.''.
(g) Other Conforming Amendments.--
(1) Section 35(g)(1) of such Code is amended by striking
``subsection (a)'' and inserting ``subsection (a)(1)''.
(2) Section 35(g)(2) of such Code is amended by striking
``162(l) or 213'' and inserting ``162(l), 213, or 419''.
(h) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2003.
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