II 

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. 

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. 

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 ‘‘Small Business Tax 

5 Credits Improvement Act’’. 

6 SEC. 2. MODIFICATION OF SMALL EMPLOYER HEALTH IN7 SURANCE CREDIT. 

8 (a) INCREASE IN ELIGIBLE BUSINESS SIZE.— 

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•S 1325 IS

1 (1) IN GENERAL.—Subparagraph (A) of section 

2 45R(d)(1) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘25’’ and inserting ‘‘50’’. 

4 (2) PHASEOUT AMOUNT.—Paragraph (1) of 

5 section 45R(c) of such Code is amended— 

6 (A) by striking ‘‘10’’ and inserting ‘‘20’’, 

7 and 

8 (B) by striking ‘‘15’’ and inserting ‘‘30’’. 

9 (3) MAXIMUM AVERAGE ANNUAL WAGES.—Sub10 paragraph (B) of section 45R(d)(3) of such Code is 

11 amended— 

12 (A) by redesignating clause (ii) as clause 

13 (iii), 

14 (B) by striking ‘‘2013’’ in clause (iii), as 

15 so redesignated, and inserting ‘‘2014’’, 

16 (C) by striking ‘‘$25,000’’ in clause (iii), 

17 as so redesignated, and inserting ‘‘$37,500’’, 

18 (D) by striking ‘‘calendar year 2012’’ in 

19 clause (iii), as so redesignated, and inserting 

20 ‘‘calendar year 2013’’, and 

21 (E) by inserting after clause (i) the fol22 lowing new clause: 

23 ‘‘(ii) 2014.—The dollar amount in ef24 fect under this paragraph for taxable years 

25 beginning in 2014 is $37,500.’’. 

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•S 1325 IS

1 (b) ELIMINATION OF UNIFORM PERCENTAGE CON2 TRIBUTION REQUIREMENT.—Paragraph (4) of section 

3 45R(d) of the Internal Revenue Code of 1986 is amended 

4 by striking ‘‘a uniform percentage (not less than 50 per5 cent)’’ and inserting ‘‘at least 50 percent’’. 

6 (c) ELIMINATION OF CAP RELATING TO AVERAGE

7 LOCAL PREMIUMS.—Subsection (b) of section 45R of the 

8 Internal Revenue Code of 1986 is amended by striking 

9 ‘‘the lesser of’’ and all that follows and inserting ‘‘the ag10 gregate amount of nonelective contributions the employer 

11 made on behalf of its employees during the taxable year 

12 under the arrangement described in subsection (d)(4) for 

13 premiums for qualified health plans offered by the em14 ployer to its employees through an Exchange.’’. 

15 (d) CREDIT AVAILABILITY FOR EMPLOYEE-OWNERS

16 AND FAMILY MEMBERS IN CERTAIN CASES.—Subpara17 graph (A) of section 45R(e)(1) of the Internal Revenue 

18 Code of 1986 is amended— 

19 (1) by striking the period at the end and insert20 ing a comma, and 

21 (2) by adding at the end the following flush 

22 text: 

23 ‘‘unless at least 1 full-time equivalent employee 

24 who is not described in clause (i), (ii), (iii), or 

25 (iv) for the taxable year was employed by the 

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•S 1325 IS

1 employer for at least 6 months during the tax2 able year (or the entire period during the tax3 able year that the business was in existence, if 

4 shorter than 6 months).’’. 

5 (e) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 December 31, 2013. 

Æ 

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