1.This Act may be cited as the
Small Business Employee Health
Insurance Credit Expansion Act of 2012
.
2.Expansion of credit
for employee health insurance expenses of small employers
(a)Increase in
maximum number of eligible full-Time employeesSubparagraph (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)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)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)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)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)
(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 contributionsParagraph (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)Subsection (b) of section 45R of such Code is amended to
read as follows:
(b)Health insurance
credit amountSubject 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)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)The amendments made by this section shall apply to taxable
years beginning after December 31, 2011.