I 

115TH CONGRESS 

1ST SESSION H. R. 1589 

To amend the Internal Revenue Code of 1986 to adjust the phaseout of 

the health insurance tax credit for geographic variations in the cost-of-living. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 16, 2017 

Mr. THOMPSON of California (for himself and Ms. ESHOO) 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 adjust 

the phaseout of the health insurance tax credit for geographic variations in the cost-of-living. 

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 ‘‘Fair Access to Health 

5 Care Act of 2017’’. 


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1 SEC. 2. PHASEOUT OF HEALTH INSURANCE TAX CREDIT 

2 ADJUSTED TO TAKE INTO ACCOUNT GEO3 GRAPHIC VARIATION IN THE COST-OF-LIV4 ING. 

5 (a) IN GENERAL.—Section 36B(b) of the Internal 

6 Revenue Code of 1986 is amended by adding at the end 

7 the following new paragraph: 

8 ‘‘(4) GEOGRAPHIC ADJUSTMENT FOR COST-OF9 LIVING.— 

10 ‘‘(A) IN GENERAL.—In the case of a tax11 payer whose principal place of residence for any 

12 taxable year is located in a high cost area, there 

13 shall be substituted ‘the specified percentage’ 

14 for ‘400 percent’ in paragraph (3)(A)(i) and in 

15 subsections (c)(1)(A) and (f)(2)(B). 

16 ‘‘(B) HIGH COST AREA.—For purposes of 

17 this paragraph, the term ‘high cost area’ means 

18 any metropolitan statistical area or non-metro19 politan area the SPM for which exceeds the na20 tional average SPM. 

21 ‘‘(C) SPECIFIED PERCENTAGE.—For pur22 poses of this paragraph, the term ‘specified per23 centage’ means, with respect to a taxpayer 

24 whose principal place of residence for any tax25 able year is located in a high cost area, the 


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1 product of 400 percent and the SPM adjust2 ment for such area. 

3 ‘‘(D) SPM.—For purposes of this para4 graph— 

5 ‘‘(i) IN GENERAL.—The term ‘SPM’ 

6 means, with respect to each calendar year, 

7 the Supplemental Poverty Measure as de8 termined by the Bureau of the Census. 

9 ‘‘(ii) NATIONAL AVERAGE SPM.—The 

10 national average SPM shall be determined 

11 without regard to Alaska and Hawaii. 

12 ‘‘(iii) DETERMINATION FOR TAXABLE

13 YEAR BASED ON PRECEDING CALENDAR

14 YEAR.—SPM with respect to any taxable 

15 year shall be determined on the basis of 

16 the calendar year preceding the calendar 

17 year in which the taxable year begins. 

18 ‘‘(E) SPM ADJUSTMENT.—For purposes of 

19 this paragraph, the term ‘SPM adjustment’ 

20 means, with respect to a high cost area for a 

21 calendar year, the SPM adjustment as deter22 mined by the Bureau of the Census. 

23 ‘‘(F) ALTERNATIVE MEASURE OF COST-OF24 LIVING.—If the Secretary determines that an25 other measure of cost-of-living is more approVerDate Sep 11 2014 04:30 Mar 22, 2017 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1589.IH H1589

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1 priate than the SPM for purposes of this para2 graph, the Secretary shall use such measure in 

3 lieu of the SPM.’’. 

4 (b) EFFECTIVE DATE.—The amendment made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2016. 

Æ 


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