110 HR 1802 IH: Keeping Small Businesses Healthy Act
U.S. House of Representatives
2007-03-29
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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.
1.This Act may be cited as the
Keeping Small Businesses Healthy Act
of 2007
.
2.Refundable credit
for small businesses providing health insurance coverage for employees
(a)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 36 as section 37 and by inserting after section 35 the
following new section:
36.Small business
health insurance expenses
(a)There shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to the applicable
percentage of the amounts paid during the taxable year by the taxpayer for
qualified health insurance for employees of the taxpayer and spouses and
dependents of such employees.
(b)The applicable percentage shall be determined in
accordance with the following table:
Total number of employees of
taxpayer: The applicable percentage is:
25 or fewer60 percent
26 to 10040 percent
101 or more0 percent.
(c)The
credit allowed under this section shall be zero for any taxable year if—
(1)less than 65
percent of the cost of the coverage (without regard to this section) for such
year is borne by the employer,
(2)the plan provides
qualified health insurance to less than 75 percent of the employees of the
employer for such year,
(3)the percentage of
the cost of the coverage (without regard to this section) for such year which
is borne by the employer is less than the percentage of the cost of such
coverage for any prior year which was borne by such employer, or
(4)the health
benefits provided under the plan for such year are less than the health
benefits provided under the plan for any prior year.
(d)Self-employed
individualsFor purposes of this section, a self-employed
individual (within the meaning of section 401(c)) shall be treated as an
employee.
(e)Qualified health
insuranceFor purposes of this section, the term qualified
health insurance means insurance which constitutes medical care (as
defined in section 213(d)); except that such term shall not include any
insurance if substantially all of its coverage is of excepted benefits
described in section 9832(c).
(f)For purposes of this section, all persons treated as a
single employer under subsection (a) or (b) of section 52 or subsection (n) or
(o) of section 414 shall be treated as one
person.
.
(b)Section 280C of such Code is amended by adding at the end
the following new subsection:
(f)Credit for small
business health insurance expenses
(1)No deduction shall be allowed for that portion of the
expenses (otherwise allowable as a deduction) taken into account in determining
the credit under section 36 for the taxable year which is equal to the amount
of the credit determined for such taxable year under section 36(a).
(2)Persons treated as one person under section 36(f) shall be
treated as one person for purposes of this
section.
(c)
(1)Paragraph (2) of
section 1324(b) of title 31, United States Code, is amended by inserting
or 36
after section 35
.
(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 item relating to section 36 and
inserting the following new items:
Sec. 36. Small business cost of providing
health insurance coverage for employees.
Sec. 37. Overpayment of
taxes
.
(d)The amendments made by this section shall apply to taxable
years beginning after December 31, 2007.