II 

115TH CONGRESS 

1ST SESSION S. 1254 

To amend the Internal Revenue Code of 1986 to expand the small employer 

health insurance credit. 

IN THE SENATE OF THE UNITED STATES 

MAY 25, 2017 

Ms. STABENOW (for herself, Mr. PETERS, and Ms. BALDWIN) 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 expand 

the small employer health insurance credit. 

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 ‘‘Health Care for Small 

5 Business Act’’. 

6 SEC. 2. EXPANSION OF SMALL EMPLOYER HEALTH INSUR7 ANCE CREDIT. 

8 (a) IN GENERAL.—Section 45R of the Internal Rev9 enue Code of 1986 is amended— 


lotter on DSKBCFDHB2PROD with BILLS
2 

•S 1254 IS

1 (1) in subsection (a), by striking ‘‘in the credit 

2 period’’, 

3 (2) by amending subsection (c) to read as fol4 lows: 

5 ‘‘(c) PHASEOUT OF CREDIT AMOUNT BASED ON AV6 ERAGE WAGES.—The amount of the credit determined 

7 under subsection (b) without regard to this subsection 

8 shall be reduced (but not below zero) by such amount mul9 tiplied by a fraction— 

10 ‘‘(1) the numerator of which is the average an11 nual wages of the employer in excess of the dollar 

12 amount in effect under subsection (d)(3)(B), and 

13 ‘‘(2) the denominator which is the amount 

14 equal to the difference between— 

15 ‘‘(A) the dollar amount in effect under 

16 subsection (d)(1)(B), and 

17 ‘‘(B) the dollar amount in effect under 

18 subsection (d)(3)(B).’’, 

19 (3) in subsection (d)— 

20 (A) in paragraph (1)— 

21 (i) in subparagraph (A), by striking 

22 ‘‘25’’ and inserting ‘‘50’’, and 

23 (ii) in subparagraph (B), by striking 

24 ‘‘an amount equal to twice the dollar 

25 amount in effect under paragraph (3)(B) 


lotter on DSKBCFDHB2PROD with BILLS
3 

•S 1254 IS

1 for the taxable year’’ and inserting 

2 ‘‘$75,000’’, and 

3 (B) in paragraph (3), by amending sub4 paragraph (B) to read as follows: 

5 ‘‘(B) DOLLAR AMOUNT.—The dollar 

6 amount under this subparagraph shall be 

7 $50,000.’’, 

8 (4) in subsection (e)— 

9 (A) by striking paragraph (2), and 

10 (B) by redesignating paragraphs (3) 

11 through (5) as paragraphs (2) through (4), re12 spectively, 

13 (5) by amending subsection (g) to read as fol14 lows: 

15 ‘‘(g) COST-OF-LIVING ADJUSTMENT.— 

16 ‘‘(1) IN GENERAL.—In the case of any taxable 

17 year beginning in a calendar year after 2017, each 

18 dollar amount in paragraphs (1)(B) and (3)(B) of 

19 subsection (d) shall be increased by an amount equal 

20 to— 

21 ‘‘(A) such dollar amount, multiplied by 

22 ‘‘(B) the cost-of-living adjustment deter23 mined under section 1(f)(3) for such calendar 

24 year, determined by substituting ‘calendar year 


lotter on DSKBCFDHB2PROD with BILLS
4 

•S 1254 IS

1 2016’ for ‘calendar year 1992’ in subparagraph 

2 (B) thereof. 

3 ‘‘(2) ROUNDING.—If any increase under para4 graph (1) is not a multiple of $1,000, such increase 

5 shall be rounded to the next lowest multiple of 

6 $1,000.’’, and 

7 (6) in subsection (i), by striking ‘‘2-year limit 

8 on the credit period through the use of successor en9 tities and the avoidance of the limitations’’ and in10 serting ‘‘limitation’’. 

11 (b) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to taxable years beginning after 

13 December 31, 2016. 

Æ 


lotter on DSKBCFDHB2PROD with BILLS