[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4324 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4324

  To amend the Internal Revenue Code of 1986 to expand the credit for 
         employee health insurance expenses of small employers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2012

Mr. Kind (for himself and Mr. McDermott) 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 expand the credit for 
         employee health insurance expenses of small 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 ``Small Business Employee Health 
Insurance Credit Expansion Act of 2012''.

SEC. 2. EXPANSION OF CREDIT FOR EMPLOYEE HEALTH INSURANCE EXPENSES OF 
              SMALL EMPLOYERS.

    (a) Increase in Maximum Number of Eligible Full-Time Employees.--
Subparagraph (A) of section 45R(d)(1) of the Internal Revenue Code of 
1986 is amended by striking ``25 full-time equivalent employees'' and 
inserting ``50 full-time equivalent employees''.
    (b) Modification of Phaseout of Credit Amount.--
            (1) In general.--Subsection (c) of section 45R of such Code 
        is amended to read as follows:
    ``(c) Phaseout of Credit Amount Based on Number of Employees and 
Average Wages.--
            ``(1) In general.--The amount of the credit determined 
        under subsection (b) shall be adjusted by multiplying--
                    ``(A) the amount determined under subsection (b), 
                by
                    ``(B) the product of the amount determined under 
                paragraph (2) and the amount determined under paragraph 
                (3).
            ``(2) Employee adjustment.--The amount determined under 
        this paragraph is a fraction (not more than 1) the numerator of 
        which is the number by which the total number of full-time 
        equivalent employees of the eligible employer is less than 50 
        and the denominator of which is 30.
            ``(3) Wages adjustment.--The amount determined under this 
        paragraph is a fraction (not more than 1) the numerator of 
        which is the amount by which the average annual wages of the 
        eligible employer is less than twice the dollar amount in 
        effect under subsection (d)(3)(B) and the denominator of which 
        is such dollar amount.''.
            (2) Conforming amendments.--
                    (A) Subsection (a) of section 45R of such Code is 
                amended by inserting ``, as adjusted under subsection 
                (c)'' after ``the amount determined under subsection 
                (b)''.
                    (B) Subparagraph (B) of section 45R(d)(3) of such 
                Code is amended by striking ``subsection (c)(2)'' and 
                inserting ``subsection (c)(3)''.
    (c) Repeal of Uniformity Requirement for Contributions.--Paragraph 
(4) of section 45R(d) of such Code is amended--
            (1) by striking ``in an amount equal to a uniform 
        percentage (not less than 50 percent) of the premium cost of 
        the qualified health plan'', and
            (2) by inserting ``(in an amount not less than 50 percent 
        of the premium cost of the qualified health plan)'' after 
        ``nonelective contribution''.
    (d) Repeal of Limitation Based on State Average Premiums.--
            (1) In general.--Subsection (b) of section 45R of such Code 
        is amended to read as follows:
    ``(b) Health Insurance Credit Amount.--Subject to subsection (c), 
the amount determined under this subsection with respect to any 
eligible small employer is equal to 50 percent (35 percent in the case 
of a tax-exempt eligible small employer) of the aggregate amount of 
nonelective contributions the employer made on behalf of its employees 
during the taxable year under the arrangement described in subsection 
(d)(4) for premiums for qualified health plans offered by the employer 
to its employees through an Exchange.''.
            (2) Conforming amendment.--Paragraph (2) of section 45R(g) 
        of such Code is amended by inserting ``and'' at the end of 
        subparagraph (A), by striking ``, and'' at the end of 
        subparagraph (B) and inserting a period, and by striking 
        subparagraph (C).
    (e) Repeal of 2-Year Credit Limit.--
            (1) Subsection (a) of section 45R of such Code is amended 
        by striking ``in the credit period''.
            (2) Subsection (e) of section 45R of such Code is amended 
        by striking paragraph (2) and by redesignating paragraphs (3), 
        (4), and (5) as paragraphs (2), (3), and (4), respectively.
            (3) Subsection (g) of section 45R of such Code is amended 
        by striking paragraph (1) and by redesignating paragraphs (2) 
        and (3) as paragraphs (1) and (2), respectively.
            (4) Subsection (i) of section 45R of such Code is amended 
        by striking ``the avoidance of the 2-year limit on the credit 
        period through the use of successor entities and''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.
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