I

106TH CONGRESS

1ST SESSION H. R. 2304

To amend the Internal Revenue Code of 1986 to allow employers who maintain a self-insured health plan for their employees a credit against income

tax for a portion of the cost paid for providing health coverage for

their employees.

IN THE HOUSE OF REPRESENTATIVES

JUNE 22, 1999

Mr. MALONEY of Connecticut 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 employers who maintain a self-insured health plan for their

employees a credit against income tax for a portion of

the cost paid for providing health coverage for their

employees.

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 Care Benefits

5 Financial Protection Act of 1999’’.
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1 SEC. 2. CREDIT TO EMPLOYERS MAINTAINING SELF-IN2 SURED HEALTH PLAN FOR COST OF PRO3 VIDING HEALTH COVERAGE FOR EMPLOY4 EES.

5 (a) IN GENERAL.—Subpart D of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of

7 1986 (relating to business related credits) is amended by

8 adding at the end the following new section:

9 ‘‘SEC. 45D. CREDIT TO EMPLOYERS MAINTAINING SELF-IN10 SURED HEALTH PLAN FOR COST OF PRO11 VIDING HEALTH COVERAGE FOR EMPLOY12 EES.

13 ‘‘(a) GENERAL RULE.—For purposes of section 38,

14 in the case of an eligible employer, the health coverage

15 cost credit determined under this section for the taxable

16 year is an amount equal to 3 percent of the amount paid

17 or incurred by the taxpayer during the taxable year for

18 health coverage for such employer’s employees and their

19 spouses and dependents.

20 ‘‘(b) ELIGIBLE EMPLOYER.—For purposes of this

21 section, the term ‘eligible employer’ means any employer

22 who, throughout the taxable year, maintains a group

23 health plan for such employer’s employees and their

24 spouses and dependents which is not provided through in25 surance.

26 ‘‘(c) SPECIAL RULES.—
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1 ‘‘(1) ONLY NONGOVERNMENTAL COVERAGE

2 TAKEN INTO ACCOUNT.—Amounts paid or incurred

3 for coverage under Medicare or any other govern4 ment program shall not be taken into account under

5 subsection (a).

6 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc7 tion shall be allowed for that portion of the amount

8 taken into account under subsection (a) (which is

9 otherwise allowable as a deduction for the taxable

10 year) equal to the amount of the credit determined

11 for such taxable year under subsection (a).’’

12 (b) CREDIT MADE PART OF GENERAL BUSINESS

13 CREDIT.—

14 (1) IN GENERAL.—Subsection (b) of section 38

15 of such Code is amended by striking ‘‘plus’’ at the

16 end of paragraph (11), by striking the period at the

17 end of paragraph (12) and inserting ‘‘, plus’’, and

18 by adding at the end the following new paragraph:

19 ‘‘(13) in the case of a eligible employer (as de20 fined in section 45D(b)), the health coverage cost

21 credit determined under section 45D(a).’’

22 (2) DENIAL OF CARRYBACKS TO PRE-EFFEC23 TIVE DATE YEARS.—Subsection (d) of section 39 of

24 such Code is amended by adding at the end the fol25 lowing new paragraph:
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1 ‘‘(8) NO CARRYBACK OF SECTION 45D CREDIT

2 BEFORE ENACTMENT.—No portion of the unused

3 business credit for any taxable year which is attrib4 utable to the health coverage cost credit determined

5 under section 45D may be carried back to a taxable

6 year beginning on or before the date of the enact7 ment of section 45D.’’

8 (c) CLERICAL AMENDMENT.—The table of sections

9 for subpart D of part IV of subchapter A of chapter 1

10 of such Code is amended by adding at the end the fol11 lowing new item:

‘‘Sec. 45D. Credit to employers maintaining self-insured health

plan for cost of providing health coverage for employees.’’

12 (d) 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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