I 

109TH CONGRESS 

1ST SESSION H. R. 322 

To amend the Internal Revenue Code of 1986 to allow a refundable credit 

to military retirees for premiums paid for coverage under Medicare 

Part B. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 25, 2005 

Mrs. EMERSON 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 allow a 

refundable credit to military retirees for premiums paid 

for coverage under Medicare Part B. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Military Retiree Health 

5 Care Relief Act of 2005’’. 

6 SEC. 2. PREMIUMS PAID BY MILITARY RETIREES FOR MEDI7 CARE PART B. 

8 (a) IN GENERAL.—Subpart C of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 
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1 1986 (relating to refundable credits) is amended by redes2 ignating section 36 as section 37 and by inserting after 

3 section 35 the following new section: 

4 ‘‘SEC. 36. PREMIUMS PAID BY MILITARY RETIREES FOR 

5 MEDICARE PART B. 

6 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli7 gible individual, there shall be allowed as a credit against 

8 the tax imposed by this chapter for the taxable year an 

9 amount equal to the aggregate premiums paid under sec10 tion 1840 of the Social Security Act by the taxpayer dur11 ing the taxable year for enrollment of the eligible indi12 vidual under part B of title XVIII of such Act. 

13 ‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of sub14 section (a), the term ‘eligible individual’ means—

15 ‘‘(1) an individual who is entitled to retired or 

16 retainer pay based upon service in the uniformed 

17 services (as defined in section 101 of title 10, United 

18 States Code), 

19 ‘‘(2) the spouse (as determined under section 

20 7703) of an individual described in paragraph (1), 

21 and 

22 ‘‘(3) the widow or widower, as the case may be, 

23 of an individual described in paragraph (1).’’. 

24 (b) TECHNICAL AMENDMENTS.—
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1 (1) Paragraph (2) of section 1324(b) of title 

2 31, United States Code, is amended by inserting ‘‘or 

3 from section 36 of such Code’’ before the period at 

4 the end. 

5 (2) The table of sections for subpart C of part 

6 IV of subchapter A of chapter 1 of the Internal Rev7 enue Code of 1986 is amended by striking the last 

8 item and inserting the following new items:

‘‘Sec. 36. Premiums paid by military retirees for medicare part B. 

‘‘Sec. 37. Overpayments of tax.’’.

9 (c) EFFECTIVE DATE.—

10 (1) IN GENERAL.—The amendments made by 

11 this section shall apply to expenses incurred after 

12 December 31, 1998. 

13 (2) WAIVER OF LIMITATIONS.—If the credit or 

14 refund of any overpayment of tax resulting from the 

15 application of section 36 of the Internal Revenue 

16 Code of 1986 (as added by this section) to a period 

17 before the date of enactment of this Act is prevented 

18 as of such date by the operation of any law or rule 

19 of law (including res judicata), such credit or refund 

20 may nevertheless be allowed or made if the claim 

21 therefor is filed before the close of the 1-year period 

22 beginning on the date of the enactment of this Act.

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