109 HR 5613 IH: To amend the Internal Revenue Code of 1986 to allow a tax U.S. House of Representatives 2006-06-14 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.

I 109th CONGRESS 2d Session H. R. 5613 IN THE HOUSE OF REPRESENTATIVES June 14, 2006 Mr. Gerlach 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 a tax credit for charitable contributions to private, nonprofit charities providing health insurance premium assistance and drug co-payment assistance, thereby transitioning uninsured Americans into private insurance and transitioning Medicaid patients into private insurance, and for other purposes.

1.

Short title

This act may be cited as the Health Insurance Tax Credit Assistance Act of 2006.

2.

Credit for charitable contributions to certain private charities providing health insurance premium assistance and drug copayment assistance to the uninsured and underinsured

(a)

In general

Subpart A of part IV of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25D the following new section:

25E.

Credit for contributions to the chronically ill uninsured and underinsured

(a)

In general

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified charitable contributions made by the taxpayer. (b)

Limitation

The amount allowed as a credit to the taxpayer under subsection (a) shall not exceed $1,000 ($2,000 in the case of a joint return). (c)

Qualified charitable contribution

For the purposes of this section, the term qualified charitable contribution means a charitable contribution (as defined in section 170(c)) made in cash to a qualified charity. (d)

Qualified charity

For purposes of this section— (1)

In general

The term qualified charity means an organization described in section 501(c)(3) and exempt from tax under section 501(a)— (A)which is certified by the Office of Inspector General of the Department of Health and Human Services as meeting the requirements of paragraph (2), and (B)which is organized under the laws of a State at the time the contribution is made and is exempt from income taxation (if any) by such State. (2)

Charity must work to assist chronically ill patients with health insurance premium assistance and copayment assistance

An organization meets the requirements of this paragraph only if the predominant activity of such organization is the subsidizing of health insurance premiums and pharmacy co-payments of individuals who are uninsured or cannot otherwise afford health insurance or drug treatments. (e)

Denial of double benefit

No deduction shall be allowed under any other provision of this chapter for any contribution for which a deduction or credit is allowed under subsection (a). (f)

Election to not take credit

No credit shall be allowed under subsection (a) for any contribution if the taxpayer elects to not have this section apply to such contribution.

. (b)

Clerical amendments

The table of sections of such subpart is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Credit for contributions to the chronically ill uninsured and underinsured. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.