[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1325 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1325

To amend the Internal Revenue Code of 1986 to modify the small employer 
            health insurance credit, and for other purposes.


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                   IN THE SENATE OF THE UNITED STATES

                             July 18, 2013

  Mr. Begich (for himself and Ms. Landrieu) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to modify the small employer 
            health insurance credit, and for other purposes.

    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 Tax Credits 
Improvement Act''.

SEC. 2. MODIFICATION OF SMALL EMPLOYER HEALTH INSURANCE CREDIT.

    (a) Increase in Eligible Business Size.--
            (1) In general.--Subparagraph (A) of section 45R(d)(1) of 
        the Internal Revenue Code of 1986 is amended by striking ``25'' 
        and inserting ``50''.
            (2) Phaseout amount.--Paragraph (1) of section 45R(c) of 
        such Code is amended--
                    (A) by striking ``10'' and inserting ``20'', and
                    (B) by striking ``15'' and inserting ``30''.
            (3) Maximum average annual wages.--Subparagraph (B) of 
        section 45R(d)(3) of such Code is amended--
                    (A) by redesignating clause (ii) as clause (iii),
                    (B) by striking ``2013'' in clause (iii), as so 
                redesignated, and inserting ``2014'',
                    (C) by striking ``$25,000'' in clause (iii), as so 
                redesignated, and inserting ``$37,500'',
                    (D) by striking ``calendar year 2012'' in clause 
                (iii), as so redesignated, and inserting ``calendar 
                year 2013'', and
                    (E) by inserting after clause (i) the following new 
                clause:
                            ``(ii) 2014.--The dollar amount in effect 
                        under this paragraph for taxable years 
                        beginning in 2014 is $37,500.''.
    (b) Elimination of Uniform Percentage Contribution Requirement.--
Paragraph (4) of section 45R(d) of the Internal Revenue Code of 1986 is 
amended by striking ``a uniform percentage (not less than 50 percent)'' 
and inserting ``at least 50 percent''.
    (c) Elimination of Cap Relating to Average Local Premiums.--
Subsection (b) of section 45R of the Internal Revenue Code of 1986 is 
amended by striking ``the lesser of'' and all that follows and 
inserting ``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.''.
    (d) Credit Availability for Employee-Owners and Family Members in 
Certain Cases.--Subparagraph (A) of section 45R(e)(1) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking the period at the end and inserting a 
        comma, and
            (2) by adding at the end the following flush text:
                ``unless at least 1 full-time equivalent employee who 
                is not described in clause (i), (ii), (iii), or (iv) 
                for the taxable year was employed by the employer for 
                at least 6 months during the taxable year (or the 
                entire period during the taxable year that the business 
                was in existence, if shorter than 6 months).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2013.
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