II 

114TH CONGRESS 

1ST SESSION S. 1005 

To amend the Internal Revenue Code of 1986 to extend and modify the 

credit for health insurance costs of certain eligible individuals, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 16, 2015 

Mr. WYDEN 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 extend 

and modify the credit for health insurance costs of certain eligible individuals, 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 ‘‘Health Coverage Tax 

5 Credit Extension Act of 2015’’. 

6 SEC. 2. EXTENSION AND MODIFICATION OF HEALTH COV7 ERAGE TAX CREDIT. 

8 (a) EXTENSION.—Subparagraph (B) of section 

9 35(b)(1) of the Internal Revenue Code of 1986 is amended 


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1 by striking ‘‘before January 1, 2014’’ and inserting ‘‘be2 fore January 1, 2020’’. 

3 (b) COORDINATION WITH CREDIT FOR COVERAGE

4 UNDER A QUALIFIED HEALTH PLAN.—Subsection (g) of 

5 section 35 of the Internal Revenue Code of 1986 is amend6 ed— 

7 (1) by redesignating paragraph (11) as para8 graph (13), and 

9 (2) by inserting after paragraph (10) the fol10 lowing new paragraphs: 

11 ‘‘(11) ELECTION.— 

12 ‘‘(A) IN GENERAL.—A taxpayer may elect 

13 to have this section apply for any eligible cov14 erage month. 

15 ‘‘(B) TIMING AND APPLICABILITY OF

16 ELECTION.—Except as the Secretary may pro17 vide— 

18 ‘‘(i) an election to have this section 

19 apply for any eligible coverage month in a 

20 taxable year shall be made not later than 

21 the due date (including extensions) for the 

22 return of tax for the taxable year, and 

23 ‘‘(ii) any election for this section to 

24 apply for an eligible coverage month shall 

25 apply for all subsequent eligible coverage 


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1 months in the taxable year and, once 

2 made, shall be irrevocable with respect to 

3 such months. 

4 ‘‘(12) COORDINATION WITH PREMIUM TAX

5 CREDIT.— 

6 ‘‘(A) IN GENERAL.—An eligible coverage 

7 month to which the election under paragraph 

8 (11) applies shall not be treated as a coverage 

9 month (as defined in section 36B(c)(2)) for 

10 purposes of section 36B with respect to the tax11 payer. 

12 ‘‘(B) COORDINATION WITH ADVANCE PAY13 MENTS OF PREMIUM TAX CREDIT.—In the case 

14 of a taxpayer who makes the election under 

15 paragraph (11) with respect to any eligible cov16 erage month in a taxable year or on behalf of 

17 whom any advance payment is made under sec18 tion 7527 with respect to any month in such 

19 taxable year— 

20 ‘‘(i) the tax imposed by this chapter 

21 for the taxable year shall be increased by 

22 the excess, if any, of— 

23 ‘‘(I) the sum of any advance pay24 ments made on behalf of the taxpayer 

25 under section 1412 of the Patient 


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1 Protection and Affordable Care Act 

2 and section 7527 for months during 

3 such taxable year, over 

4 ‘‘(II) the sum of the credits al5 lowed under this section (determined 

6 without regard to paragraph (1)) and 

7 section 36B (determined without re8 gard to subsection (f)(1) thereof) for 

9 such taxable year, and 

10 ‘‘(ii) section 36B(f)(2) shall not apply 

11 with respect to such taxpayer for such tax12 able year, except that if such taxpayer re13 ceived any advance payments under section 

14 7527 for any month in such taxable year 

15 and is later allowed a credit under section 

16 36B for such taxable year, then section 

17 36B(f)(2) shall be applied by substituting 

18 the amount determined under clause (i) for 

19 the amount determined under section 

20 36B(f)(2)(A).’’. 

21 (c) EXTENSION OF ADVANCE PAYMENT PROGRAM.— 

22 (1) IN GENERAL.—Subsection (a) of section 

23 7527 of the Internal Revenue Code of 1986 is 

24 amended by striking ‘‘August 1, 2003’’ and insert25 ing ‘‘the date that is 1 year after the date of the enVerDate Sep 11 2014 05:11 Apr 24, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1005.IS S1005

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1 actment of the Health Coverage Tax Credit Exten2 sion Act of 2015’’. 

3 (2) CONFORMING AMENDMENT.—Paragraph (1) 

4 of section 7527(e) of such Code is amended by strik5 ing ‘‘occurring’’ and all that follows and inserting 

6 ‘‘occurring— 

7 ‘‘(A) after the date that is 1 year after the 

8 date of the enactment of the Health Coverage 

9 Tax Credit Extension Act of 2015, and 

10 ‘‘(B) prior to the first month for which an 

11 advance payment is made on behalf of such in12 dividual under subsection (a).’’. 

13 (d) INDIVIDUAL INSURANCE TREATED AS QUALIFIED

14 HEALTH INSURANCE WITHOUT REGARD TO ENROLL15 MENT DATE.— 

16 (1) IN GENERAL.—Subparagraph (J) of section 

17 35(e)(1) of the Internal Revenue Code of 1986 is 

18 amended by striking ‘‘insurance if the eligible indi19 vidual’’ and all that follows through ‘‘For purposes 

20 of’’ and inserting ‘‘insurance. For purposes of’’. 

21 (2) SPECIAL RULE.—Subparagraph (J) of sec22 tion 35(e)(1) of such Code, as amended by para23 graph (1), is amended by striking ‘‘insurance.’’ and 

24 inserting ‘‘insurance (other than coverage enrolled in 


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1 through an Exchange established under the Patient 

2 Protection and Affordable Care Act).’’. 

3 (e) CONFORMING AMENDMENT.—Subsection (m) of 

4 section 6501 of the Internal Revenue Code of 1986 is 

5 amended by inserting ‘‘, 35(g)(11)’’ after ‘‘30D(e)(4)’’. 

6 (f) EFFECTIVE DATE.— 

7 (1) IN GENERAL.—Except as provided in para8 graph (2), the amendments made by this section 

9 shall apply to coverage months in taxable years be10 ginning after December 31, 2013. 

11 (2) PLANS AVAILABLE ON INDIVIDUAL MARKET

12 FOR USE OF TAX CREDIT.—The amendment made 

13 by subsection (d)(2) shall apply to coverage months 

14 in taxable years beginning after December 31, 2015. 

15 (3) TRANSITION RULE.—Notwithstanding sec16 tion 35(g)(11)(B)(i) of the Internal Revenue Code of 

17 1986 (as added by this Act), an election to apply 

18 section 35 of such Code to an eligible coverage 

19 month (as defined in section 35(b) of such Code) 

20 (and not to claim the credit under section 36B of 

21 such Code with respect to such month) in a taxable 

22 year beginning after December 31, 2013, and before 

23 the date of the enactment of this Act— 

24 (A) may be made at any time on or after 

25 such date of enactment and before the expiraVerDate Sep 11 2014 05:11 Apr 24, 2015 Jkt 049200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1005.IS S1005

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1 tion of the 3-year period of limitation pre2 scribed in section 6511(a) with respect to such 

3 taxable year; and 

4 (B) may be made on an amended return. 

5 SEC. 3. AGENCY OUTREACH. 

6 As soon as possible after the date of the enactment 

7 of this Act, the Secretaries of the Treasury, Health and 

8 Human Services, and Labor (or such Secretaries’ dele9 gates) and the Director of the Pension Benefit Guaranty 

10 Corporation (or the Director’s delegate) shall carry out 

11 programs of public outreach, including on the Internet, to 

12 inform potential eligible individuals (as defined in section 

13 35(c)(1) of the Internal Revenue Code of 1986) of the ex14 tension of the credit under section 35 of the Internal Rev15 enue Code of 1986 and the availability of the election to 

16 claim such credit retroactively for coverage months begin17 ning after December 31, 2013. 

Æ 


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