II 

108TH CONGRESS 

1ST SESSION S. 1693

To amend section 35 of the Internal Revenue Code of 1986 to allow individuals receiving unemployment compensation to be eligible for a refundable, 

advanceable credit for health insurance costs. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 1, 2003

Mr. GRASSLEY (for himself and Mr. BAUCUS) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL

To amend section 35 of the Internal Revenue Code of 1986 

to allow individuals receiving unemployment compensation to be eligible for a refundable, advanceable credit 

for health insurance costs.

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 Tax Cred5 it Expansion Act of 2003’’. 
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1 SEC. 2. CREDIT FOR HEALTH INSURANCE COSTS OF INDI2 VIDUALS RECEIVING UNEMPLOYMENT COM3 PENSATION. 

4 (a) IN GENERAL.—Section 35(c) of the Internal Rev5 enue Code of 1986 (defining eligible individual) is amend6 ed—

7 (1) in paragraph (1)—

8 (A) in subparagraph (B), by striking 

9 ‘‘and’’ at the end; 

10 (B) in subparagraph (C), by striking the 

11 period and inserting ‘‘, and’’; and 

12 (C) by adding at the end the following: 

13 ‘‘(D) an eligible unemployment compensa14 tion recipient.’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(5) ELIGIBLE UNEMPLOYMENT COMPENSA17 TION RECIPIENT.—

18 ‘‘(A) IN GENERAL.—The term ‘eligible un19 employment compensation recipient’ means, 

20 with respect to any month, any individual who 

21 is determined eligible for any day of such 

22 month for unemployment compensation under 

23 State law (as defined in section 205(9) of the 

24 Federal-State Extended Unemployment Com25 pensation Act of 1970), including Federal un26 employment compensation laws administered 
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1 through the State. An individual shall continue 

2 to be treated as an eligible unemployment com3 pensation recipient during the first month that 

4 such individual would otherwise cease to be an 

5 eligible unemployment compensation recipient 

6 by reason of the preceding sentence. 

7 ‘‘(B) COORDINATION WITH OTHER ELIGI8 BILITY CATEGORIES.—An individual may not be 

9 treated as an eligible unemployment compensa10 tion recipient during any month with respect to 

11 which such individual is treated as an eligible 

12 individual described in subparagraph (A), (B), 

13 or (C) of paragraph (1).’’. 

14 (b) CONFORMING AMENDMENTS.—

15 (1) Section 35(e)(1)(J) of such Code is amend16 ed—

17 (A) in clause (ii), by striking ‘‘or’’ at the 

18 end; 

19 (B) in clause (iii), by striking the period 

20 and inserting ‘‘, or’’; and 

21 (C) by adding at the end the following: 

22 ‘‘(iv) in the case of an eligible unem23 ployment compensation recipient, the ben24 efit described in subsection (c)(5)(A).’’. 

25 (2) Section 7527(d) of such Code is amended—
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1 (A) in paragraph (1), by striking ‘‘or’’ at 

2 the end; 

3 (B) in paragraph (2), by striking the pe4 riod and inserting ‘‘, or’’; and 

5 (C) by adding at the end the following: 

6 ‘‘(3) in the case of an eligible unemployment 

7 compensation recipient (as defined in section 

8 35(c)(5)), is certified by the State agency admin9 istering the unemployment compensation law of the 

10 State under which the recipient receives such com11 pensation.’’. 

12 (c) TECHNICAL AMENDMENTS.—Section 6103(p)(4) 

13 of such Code, as amended by section 202(b)(2)(B) of the 

14 Trade Act of 2002 (Public Law 107–210; 116 Stat. 961), 

15 by striking ‘‘or (17)’’ after ‘‘any other person described 

16 in subsection (l)(16)’’ each place it appears and inserting 

17 ‘‘or (18)’’. 

18 (d) EFFECTIVE DATES.—

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by this section 

21 shall apply to amounts paid for qualified health in22 surance for months beginning with August 2003. 

23 (2) TECHNICAL AMENDMENTS.—The amend24 ments made by subsection (d) shall take effect as if 

25 included in the enactment of section 202 of the 
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1 Trade Act of 2002 (Public Law 107–210; 116 Stat. 

2 960).

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