[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2762 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 2762

    To amend the Internal Revenue Code of 1986 to provide for full 
   recapture of the refundable credit for coverage under a qualified 
health plan in the case of individuals who are not lawfully present in 
               the United States or who are incarcerated.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 7, 2016

Mr. Coats (for himself and Mr. Barrasso) 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 provide for full 
   recapture of the refundable credit for coverage under a qualified 
health plan in the case of individuals who are not lawfully present in 
               the United States or who are incarcerated.

    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 ``Recovering Erroneous Credits from 
Outlaws and Unlawful Persons Act of 2016'' or the ``RECOUP Act of 
2016''.

SEC. 2. RECAPTURE OF REFUNDABLE CREDIT FOR COVERAGE UNDER A QUALIFIED 
              HEALTH PLAN.

    (a) In General.--Subsection (e) of section 36B of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(4) Recapture of improperly paid advance payments.--
        Notwithstanding subsection (f)(2)(B), if any advance payment is 
        made under section 1412 of the Patient Protection and 
        Affordable Care Act for a coverage month in a taxable year with 
        respect to 1 or more individuals--
                    ``(A) who are not lawfully present, or
                    ``(B) who are incarcerated, other than 
                incarceration pending the disposition of charges,
        the tax imposed by this chapter for the taxable year shall be 
        increased by the total amount of such payment which is 
        attributable to such individuals. The preceding sentence shall 
        apply to a coverage month only if the individual is described 
        in subparagraph (A) or (B) for the entire month. Subparagraph 
        (B) shall apply without regard to whether the individual was 
        incarcerated at the time of enrollment in the plan.''.
    (b) Clarification of Treatment of Incarcerated Individuals.--
Subsection (e) of section 36B of the Internal Revenue Code of 1986, as 
amended by subsection (a), is amended--
            (1) by striking ``Individuals Not Lawfully Present'' in the 
        heading and inserting ``Certain Ineligible Individuals'',
            (2) by striking ``In general'' in the heading of paragraph 
        (1) and inserting ``Individuals not lawfully present'',
            (3) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively, and
            (4) by inserting after paragraph (2) the following new 
        paragraph:
            ``(3) Incarcerated individuals.--
                    ``(A) In general.--If 1 or more individuals for 
                whom a taxpayer is allowed a deduction under section 
                151 for the taxable year (including the taxpayer or the 
                taxpayer's spouse) are incarcerated (other than 
                incarceration pending the disposition of charges) 
                during any coverage month in such year, the aggregate 
                amount of premiums otherwise taken into account under 
                clauses (i) and (ii) of subsection (b)(2)(A) shall be 
                reduced by the portion (if any) of such premiums which 
                is attributable to such individuals for such month.
                    ``(B) Reporting with respect to prisoner 
                information.--The determination of whether an 
                individual is incarcerated for a coverage month shall 
                be based on the information provided to the Secretary 
                under section 6116.''.
    (c) Conforming Amendment.--Subparagraph (B) of section 36B(f)(2) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new clause:
                            ``(iii) Exception.--For taxpayers to whom 
                        this subparagraph does not apply, see 
                        subsection (f)(5).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.
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