I 

108TH CONGRESS 

1ST SESSION H. R. 2876

To amend the Internal Revenue Code of 1986 to allow individuals a refundable credit for amounts paid for products and counseling designed to 

assist individuals to cease using tobacco products. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 24, 2003

Mr. LATOURETTE (for himself, Mr. PLATTS, Mr. MEEHAN, and Mrs. JONES

of Ohio) 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 individuals a refundable credit for amounts paid for products 

and counseling designed to assist individuals to cease 

using tobacco products.

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 ‘‘Quit Smoking Incen5 tive and Opportunity Act of 2003’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds as follows: 
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1 (1) Unless the prevalence of tobacco use is cut 

2 dramatically, about 24,000,000 Americans, 1 out of 

3 every 2 current smokers in America, will die pre4 maturely of a disease directly caused by their de5 pendence on tobacco. 

6 (2) Smoking is the leading preventable cause of 

7 death in the United States with 400,000 premature 

8 deaths annually, and $157,000,000,000 in annual 

9 health-related economic losses, including more than 

10 $75,000,000,000 in excess medical expenditures. 

11 (3) Clinical studies have shown that pharma12 cological treatments are an effective treatment for 

13 tobacco dependence, and there are currently 6 medi14 cations that have been approved by the FDA for to15 bacco use cessation. 

16 (4) Clinical studies have shown that counseling 

17 is an effective treatment for tobacco dependence, 

18 and that counseling can be provided in individual or 

19 group settings, or via telephone, such as the Quit 

20 Lines provided by 33 States. 

21 (5) Studies have also shown that when coun22 seling is combined with pharmacological treatment, 

23 the effectiveness of treatment doubles or triples 

24 (compared to counseling alone). 
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1 (6) The cost of over-the-counter Nicotine Re2 placement Therapy (gum, patch, lozenges) is not 

3 covered by Medicare, and is rarely covered by private 

4 insurance. Fifteen states under Medicaid cover no 

5 Nicotine Replacement Therapy and many of the re6 maining 35 states do not cover all Nicotine Replace7 ment Therapies. Nicotine Replacement Therapy is 

8 rarely tax-deductible, and typically costs about $300 

9 for a suggested 10-week course of treatment. 

10 (7) The Guide to Community Preventive Serv11 ices: Tobacco Use Prevention and Control (CDC 

12 2000) and Treating Tobacco Use and Dependence: 

13 Clinical Practice Guideline (2000) recommended a 

14 reduction or elimination of out-of-pocket costs to in15 crease the use of tobacco use cessation treatments. 

16 (8) Under current law, unreimbursed tobacco 

17 use cessation counseling programs and prescribed 

18 nicotine-withdrawal drugs are considered expenses 

19 for medical care that are deductible subject to the 

20 7.5 percent of adjusted gross income limitation. 

21 (9) Two-thirds of all filers do not itemize. 
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1 SEC. 3. REFUNDABLE CREDIT FOR AMOUNTS PAID TO AS2 SIST INDIVIDUALS TO CEASE USING TO3 BACCO PRODUCTS. 

4 (a) IN GENERAL.—Subpart C of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to refundable credits) is amended by insert7 ing after section 35 the following new section: 

8 ‘‘SEC. 35A. CERTAIN EXPENSES TO ASSIST INDIVIDUALS TO 

9 CEASE USING TOBACCO PRODUCTS. 

10 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in11 dividual, there shall be allowed as a credit against the tax 

12 imposed by this subtitle an amount equal to the qualified 

13 tobacco use cessation expenses paid by the taxpayer dur14 ing the taxable year for the benefit of the taxpayer, the 

15 taxpayer’s spouse, or any dependent of the taxpayer. 

16 ‘‘(b) LIMITATION.—The credit allowed under this sec17 tion shall not exceed—

18 ‘‘(1) $300 for amounts described in subsection 

19 (c)(1)(A), and 

20 ‘‘(2) $100 for amounts described in subsection 

21 (c)(1)(B). 

22 ‘‘(c) QUALIFIED TOBACCO USE CESSATION EX23 PENSES.—For purposes of this section—

24 ‘‘(1) IN GENERAL.—The term ‘qualified tobacco 

25 use cessation expenses’ means expenses—
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1 ‘‘(A) for products determined by the Food 

2 and Drug Administration to be safe and effec3 tive in promoting a reduction in the use of to4 bacco products by individuals, and 

5 ‘‘(B) for counseling for cessation of to6 bacco use. 

7 ‘‘(2) COUNSELING.—

8 ‘‘(A) IN GENERAL.—Subject to subpara9 graph (B), the term ‘counseling for cessation of 

10 tobacco use’ means diagnostic, therapy, and 

11 counseling services for cessation of tobacco use 

12 for individuals who use tobacco products or who 

13 are being treated for tobacco use which are fur14 nished—

15 ‘‘(i) by or under the supervision of a 

16 physician, or 

17 ‘‘(ii) by any other health care profes18 sional who is legally authorized to furnish 

19 such services under State law (or the State 

20 regulatory mechanism provided by State 

21 law) of the State in which the services are 

22 furnished. 

23 ‘‘(B) LIMITATION.—Such term is limited 

24 to—
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1 ‘‘(i) services recommended in ‘Treat2 ing Tobacco Use and Dependence: A Clin3 ical Practice Guideline’, published by the 

4 Public Health Service in June 2000, or 

5 any subsequent modification of such 

6 Guideline, and 

7 ‘‘(ii) such other services that the Sec8 retary of Health and Human Services rec9 ognizes to be effective.’’

10 (b) TECHNICAL AMENDMENTS.—

11 (1) Paragraph (2) of section 1324(b) of title 

12 31, United States Code, is amended by inserting ‘‘or 

13 36’’ after ‘‘section 35’’. 

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

15 IV of subchapter A of chapter 1 of such Code is 

16 amended by inserting after the item relating to sec17 tion 35 following new item:

‘‘Sec. 35A. Certain expenses to assist individuals to cease using 

tobacco products.’’

18 (c) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 the date of the enactment of this Act.

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