I 

109TH CONGRESS 

2D SESSION H. R. 5613 

To amend the Internal Revenue Code of 1986 to allow a tax credit for 

charitable contributions to private, nonprofit charities providing health 

insurance premium assistance and drug co-payment assistance, thereby 

transitioning uninsured Americans into private insurance and 

transitioning Medicaid patients into private insurance, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 14, 2006 

Mr. GERLACH 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 a 

tax credit for charitable contributions to private, nonprofit charities providing health insurance premium assistance and drug co-payment assistance, thereby 

transitioning uninsured Americans into private insurance 

and transitioning Medicaid patients into private insurance, 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, 


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1 SECTION 1. SHORT TITLE. 

2 This act may be cited as the ‘‘Health Insurance Tax 

3 Credit Assistance Act of 2006’’. 

4 SEC. 2. CREDIT FOR CHARITABLE CONTRIBUTIONS TO CER5 TAIN PRIVATE CHARITIES PROVIDING 

6 HEALTH INSURANCE PREMIUM ASSISTANCE 

7 AND DRUG COPAYMENT ASSISTANCE TO THE 

8 UNINSURED AND UNDERINSURED. 

9 (a) IN GENERAL.—Subpart A of part IV of chapter 

10 1 of the Internal Revenue Code of 1986 (relating to non11 refundable personal credits) is amended by inserting after 

12 section 25D the following new section: 

13 ‘‘SEC. 25E. CREDIT FOR CONTRIBUTIONS TO THE CHRON14 ICALLY ILL UNINSURED AND UNDER15 INSURED. 

16 ‘‘(a) IN GENERAL.—In the case of an individual, 

17 there shall be allowed as a credit against the tax imposed 

18 by this chapter for the taxable year an amount equal to 

19 the qualified charitable contributions made by the tax20 payer. 

21 ‘‘(b) LIMITATION.—The amount allowed as a credit 

22 to the taxpayer under subsection (a) shall not exceed 

23 $1,000 ($2,000 in the case of a joint return). 

24 ‘‘(c) QUALIFIED CHARITABLE CONTRIBUTION.—For 

25 the purposes of this section, the term ‘qualified charitable 


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1 contribution’ means a charitable contribution (as defined 

2 in section 170(c)) made in cash to a qualified charity. 

3 ‘‘(d) QUALIFIED CHARITY.—For purposes of this sec4 tion— 

5 ‘‘(1) IN GENERAL.—The term ‘qualified charity’ 

6 means an organization described in section 501(c)(3) 

7 and exempt from tax under section 501(a)— 

8 ‘‘(A) which is certified by the Office of In9 spector General of the Department of Health 

10 and Human Services as meeting the require11 ments of paragraph (2), and 

12 ‘‘(B) which is organized under the laws of 

13 a State at the time the contribution is made 

14 and is exempt from income taxation (if any) by 

15 such State. 

16 ‘‘(2) CHARITY MUST WORK TO ASSIST CHRON17 ICALLY ILL PATIENTS WITH HEALTH INSURANCE

18 PREMIUM ASSISTANCE AND COPAYMENT ASSIST19 ANCE.—An organization meets the requirements of 

20 this paragraph only if the predominant activity of 

21 such organization is the subsidizing of health insur22 ance premiums and pharmacy co-payments of indi23 viduals who are uninsured or cannot otherwise af24 ford health insurance or drug treatments. 


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1 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 

2 shall be allowed under any other provision of this chapter 

3 for any contribution for which a deduction or credit is al4 lowed under subsection (a). 

5 ‘‘(f) ELECTION TO NOT TAKE CREDIT.—No credit 

6 shall be allowed under subsection (a) for any contribution 

7 if the taxpayer elects to not have this section apply to such 

8 contribution.’’. 

9 (b) CLERICAL AMENDMENTS.—The table of sections 

10 of such subpart is amended by inserting after the item 

11 relating to section 25D the following new item: 

‘‘Sec. 25E. Credit for contributions to the chronically ill uninsured and underinsured.’’. 

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

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act. 

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