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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 965 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 965

  To amend the Internal Revenue Code of 1986 to provide an income tax 
 credit for the costs of certain infertility treatments, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 12, 2011

Mrs. Gillibrand 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 provide an income tax 
 credit for the costs of certain infertility treatments, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Act of 2011''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The World Health Organization formally recognizes 
        infertility as a disease, and the Centers for Disease Control 
        and Prevention have stated that infertility is an emerging 
        public health priority.
            (2) According to the Centers for Disease Control and 
        Prevention, approximately 3,000,000 have infertility.
            (3) Medical insurance coverage for infertility treatments 
        is sparse and inconsistent at the State level--only 8 States 
        have passed laws to require comprehensive infertility coverage, 
        and under those State laws most employer-sponsored plans are 
        exempt; therefore, coverage for treatments such as in vitro 
        fertilization is limited. According to Mercer's 2005 National 
        Survey of Employer-Sponsored Health Plans, in vitro 
        fertilization was covered by 19 percent of large employer-
        sponsored health plans and only 11 percent of small employer-
        sponsored health plans. Even in States with coverage mandates, 
        out-of-pocket expenses for these treatments are significant.

SEC. 3. CREDIT FOR CERTAIN INFERTILITY TREATMENTS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting before 
section 24 the following new section:

``SEC. 23A. CREDIT FOR CERTAIN INFERTILITY TREATMENTS.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to 50 percent of the 
qualified infertility treatment expenses paid or incurred during the 
taxable year.
    ``(b) Limitations.--
            ``(1) Dollar limitation.--The aggregate amount of qualified 
        infertility treatment expenses which may be taken into account 
        under subsection (a) for all taxable years shall not exceed 
        $13,360 with respect to any eligible individual.
            ``(2) Income limitation.--
                    ``(A) In general.--The amount otherwise allowable 
                as a credit under subsection (a) for any taxable year 
                (determined after the application of paragraph (1) and 
                without regard to this paragraph and subsection (c)) 
                shall be reduced (but not below zero) by an amount 
                which bears the same ratio to the amount so allowable 
                as--
                            ``(i) the amount (if any) by which the 
                        taxpayer's adjusted gross income exceeds 
                        $150,000; bears to
                            ``(ii) $40,000.
                    ``(B) Determination of adjusted gross income.--For 
                purposes of subparagraph (A), adjusted gross income 
                shall be determined without regard to sections 911, 
                931, and 933.
            ``(3) Denial of double benefit.--
                    ``(A) In general.--No credit shall be allowed under 
                subsection (a) for any expense for which a deduction or 
                credit is taken under any other provision of this 
                chapter.
                    ``(B) Grants.--No credit shall be allowed under 
                subsection (a) for any expense to the extent that 
                reimbursement or other funds in compensation for such 
                expense are received under any Federal, State, or local 
                program.
                    ``(C) Insurance reimbursement.--No credit shall be 
                allowed under subsection (a) for any expense to the 
                extent that payment for such expense is made, or 
                reimbursement for such expense is received, under any 
                insurance policy.
            ``(4) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for any taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55; over
                    ``(B) the sum of the credits allowable under this 
                subpart (other than this section) and section 27 for 
                the taxable year.
    ``(c) Carryforwards of Unused Credit.--
            ``(1) Rule for years in which all personal credits allowed 
        against regular and alternative minimum tax.--In the case of a 
        taxable year to which section 26(a)(2) applies, if the credit 
        allowable under subsection (a) exceeds the limitation imposed 
        by section 26(a)(2) for such taxable year reduced by the sum of 
        the credits allowable under this subpart (other than this 
        section), such excess shall be carried to the succeeding 
        taxable year and added to the credit allowable under subsection 
        (a) for such succeeding taxable year.
            ``(2) Rule for other years.--In the case of a taxable year 
        to which section 26(a)(2) does not apply, if the credit 
        allowable under subsection (a) exceeds the limitation imposed 
        by subsection (b)(4) for such taxable year, such excess shall 
        be carried to the succeeding taxable year and added to the 
        credit allowable under subsection (a) for such succeeding 
        taxable year.
            ``(3) Limitation.--No credit may be carried forward under 
        this subsection to any taxable year after the 5th taxable year 
        after the taxable year in which the credit arose. For purposes 
        of the preceding sentence, credits shall be treated as used on 
        a first-in first-out basis.
    ``(d) Qualified Infertility Treatment Expenses.--For purposes of 
this section--
            ``(1) In general.--The term `qualified infertility 
        treatment expenses' means amounts paid or incurred for the 
        treatment of infertility via in vitro fertilization if such 
        treatment is--
                    ``(A) provided by a licensed physician, licensed 
                surgeon, or other licensed medical practitioner, and
                    ``(B) administered with respect to a diagnosis of 
                infertility by a physician licensed in the United 
                States.
            ``(2) Treatments in advance of infertility arising from 
        medical treatments.--In the case of expenses incurred in 
        advance of a diagnosis of infertility for fertility 
        preservation procedures which are conducted prior to medical 
        procedures that, as determined by a physician licensed in the 
        United States, may cause involuntary infertility or 
        sterilization, such expenses shall be treated as qualified 
        infertility treatment expenses--
                    ``(A) notwithstanding paragraph (1)(B), and
                    ``(B) without regard to whether a diagnosis of 
                infertility subsequently results.
        Expenses for fertility preservation procedures in advance of a 
        procedure designed to result in infertility or sterilization 
        shall not be treated as qualified infertility treatment 
        expenses.
            ``(3) Infertility.--The term `infertility' means the 
        inability to conceive or to carry a pregnancy to live birth, 
        including iatrogenic infertility resulting from medical 
        treatments such as chemotherapy, radiation or surgery. Such 
        term does not include infertility or sterilization resulting 
        from a procedure designed for such purpose.
    ``(e) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means an individual--
            ``(1) who has been diagnosed with infertility by a 
        physician licensed in the United States, or
            ``(2) with respect to whom a physician licensed in the 
        United States has made the determination described in 
        subsection (d)(2).
    ``(f) Filing Requirements.--Married taxpayers must file joint 
returns. Rules similar to the rules of paragraphs (2), (3), and (4) of 
section 21(e) shall apply for purposes of this section.
    ``(g) Adjustments for Inflation.--
            ``(1) Dollar limitations.--In the case of a taxable year 
        beginning after December 31, 2012, the dollar amount in 
        subsection (b)(1) shall be increased by an amount equal to--
                    ``(A) such dollar amount; multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2011' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any amount as increased under the preceding sentence is not 
        a multiple of $10, such amount shall be rounded to the nearest 
        multiple of $10.
            ``(2) Income limitation.--In the case of a taxable year 
        beginning after December 31, 2002, the dollar amount in 
        subsection (b)(2)(A)(i) shall be increased by an amount equal 
        to--
                    ``(A) such dollar amount; multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2001' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any amount as increased under the preceding sentence is not 
        a multiple of $10, such amount shall be rounded to the nearest 
        multiple of $10.''.
    (b) Conforming Amendments.--
            (1) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting before the item relating to section 24 
        the following new item:

``Sec. 23A. Credit for certain infertility treatments.''.
            (2) Section 36C(b)(4) of such Code is amended by striking 
        ``section 25D'' and inserting ``sections 23A and 25D''.
            (3) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``23A,'' before ``24,''.
            (4) Section 25D(c)(1)(B) of such Code is amended by 
        striking ``section 27'' and inserting ``sections 23A and 27''.
            (5) Section 1400C(d)(1) of such Code is amended by striking 
        ``section 25D'' and inserting ``sections 23A and 25D''.
            (6) Section 1400C(d)(2) of such Code is amended by 
        inserting ``23A,'' after ``23,''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2011.
                                 <all>
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