I 

113TH CONGRESS 

2D SESSION H. R. 4244 

To amend the Internal Revenue Code of 1986 to modify the small employer 

health insurance credit, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 13, 2014 

Mr. PETERS of Michigan (for himself, Mr. MURPHY of Florida, and Mr. 

SCHRADER) 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 modify 

the small employer health insurance credit, 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 ‘‘Small Business Health 

5 Insurance Affordability Act of 2014’’. 

6 SEC. 2. MODIFICATION OF SMALL EMPLOYER HEALTH IN7 SURANCE CREDIT. 

8 (a) INCREASE IN ELIGIBLE BUSINESS SIZE.— 

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1 (1) IN GENERAL.—Subparagraph (A) of section 

2 45R(d)(1) of the Internal Revenue Code of 1986 is 

3 amended by striking ‘‘25’’ and inserting ‘‘50’’. 

4 (2) PHASEOUT AMOUNT BASED ON NUMBER OF

5 EMPLOYEES.—Paragraph (1) of section 45R(c) of 

6 such Code is amended by striking ‘‘10’’ and insert7 ing ‘‘20’’. 

8 (3) MAXIMUM AVERAGE ANNUAL WAGES.—Sub9 paragraph (B) of section 45R(d)(3) of such Code is 

10 amended— 

11 (A) by redesignating clause (ii) as clause 

12 (iii), 

13 (B) by striking ‘‘2013’’ in clause (iii), as 

14 so redesignated, and inserting ‘‘2014’’, 

15 (C) by striking ‘‘$25,000’’ in clause (iii), 

16 as so redesignated, and inserting ‘‘$35,000’’, 

17 (D) by striking ‘‘calendar year 2012’’ in 

18 clause (iii), as so redesignated, and inserting 

19 ‘‘calendar year 2013’’, and 

20 (E) by inserting after clause (i) the fol21 lowing new clause: 

22 ‘‘(ii) 2014.—The dollar amount in ef23 fect under this paragraph for taxable years 

24 beginning in 2014 is $35,000.’’. 

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1 (b) ELIMINATION OF UNIFORM PERCENTAGE CON2 TRIBUTION REQUIREMENT.—Paragraph (4) of section 

3 45R(d) of the Internal Revenue Code of 1986 is amended 

4 by striking ‘‘a uniform percentage (not less than 50 per5 cent)’’ and inserting ‘‘at least 50 percent’’. 

6 (c) ELIMINATION OF CAP RELATING TO AVERAGE

7 LOCAL PREMIUMS.—Subsection (b) of section 45R of the 

8 Internal Revenue Code of 1986 is amended by striking 

9 ‘‘the lesser of’’ and all that follows and inserting ‘‘the ag10 gregate amount of nonelective contributions the employer 

11 made on behalf of its employees during the taxable year 

12 under the arrangement described in subsection (d)(4) for 

13 premiums for qualified health plans offered by the em14 ployer to its employees through an Exchange.’’. 

15 (d) CREDIT PERIOD.—Section 45R(e)(2) of the In16 ternal Revenue Code of 1986 is amended by striking ‘‘2- 

17 consecutive-taxable year period’’ and inserting ‘‘3-consecu18 tive-taxable year period’’. 

19 (e) COVERAGE PROVIDING ESSENTIAL HEALTH

20 BENEFITS THROUGH NON-EXCHANGE PLAN TREATED AS

21 QUALIFIED.—Section 45R(e) of the Internal Revenue 

22 Code of 1986 is amended by adding at the end the fol23 lowing new paragraph: 

24 ‘‘(6) COVERAGE PROVIDING ESSENTIAL HEALTH

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1 ED AS QUALIFIED.—Health insurance providing the 

2 essential health benefits specified in section 

3 1302(b)(1) of the Patient Protection and Affordable 

4 Care Act (42 U.S.C. 18022(b)(1)) through a plan 

5 not offered through an Exchange shall be treated as 

6 a qualified health plan offered through an Ex7 change.’’. 

8 (f) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2013. 

Æ 

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