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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1693 Introduced in Senate (IS)]

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.

    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 ``Health Care Tax Credit Expansion Act 
of 2003''.

SEC. 2. CREDIT FOR HEALTH INSURANCE COSTS OF INDIVIDUALS RECEIVING 
              UNEMPLOYMENT COMPENSATION.

    (a) In General.--Section 35(c) of the Internal Revenue Code of 1986 
(defining eligible individual) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B), by striking ``and'' at the 
                end;
                    (B) in subparagraph (C), by striking the period and 
                inserting ``, and''; and
                    (C) by adding at the end the following:
                    ``(D) an eligible unemployment compensation 
                recipient.''; and
            (2) by adding at the end the following:
            ``(5) Eligible unemployment compensation recipient.--
                    ``(A) In general.--The term `eligible unemployment 
                compensation recipient' means, with respect to any 
                month, any individual who is determined eligible for 
                any day of such month for unemployment compensation 
                under State law (as defined in section 205(9) of the 
                Federal-State Extended Unemployment Compensation Act of 
                1970), including Federal unemployment compensation laws 
                administered through the State. An individual shall 
                continue to be treated as an eligible unemployment 
                compensation recipient during the first month that such 
                individual would otherwise cease to be an eligible 
                unemployment compensation recipient by reason of the 
                preceding sentence.
                    ``(B) Coordination with other eligibility 
                categories.--An individual may not be treated as an 
                eligible unemployment compensation recipient during any 
                month with respect to which such individual is treated 
                as an eligible individual described in subparagraph 
                (A), (B), or (C) of paragraph (1).''.
    (b) Conforming Amendments.--
            (1) Section 35(e)(1)(J) of such Code is amended--
                    (A) in clause (ii), by striking ``or'' at the end;
                    (B) in clause (iii), by striking the period and 
                inserting ``, or''; and
                    (C) by adding at the end the following:
                            ``(iv) in the case of an eligible 
                        unemployment compensation recipient, the 
                        benefit described in subsection (c)(5)(A).''.
            (2) Section 7527(d) of such Code is amended--
                    (A) in paragraph (1), by striking ``or'' at the 
                end;
                    (B) in paragraph (2), by striking the period and 
                inserting ``, or''; and
                    (C) by adding at the end the following:
            ``(3) in the case of an eligible unemployment compensation 
        recipient (as defined in section 35(c)(5)), is certified by the 
        State agency administering the unemployment compensation law of 
        the State under which the recipient receives such 
        compensation.''.
    (c) Technical Amendments.--Section 6103(p)(4) of such Code, as 
amended by section 202(b)(2)(B) of the Trade Act of 2002 (Public Law 
107-210; 116 Stat. 961), by striking ``or (17)'' after ``any other 
person described in subsection (l)(16)'' each place it appears and 
inserting ``or (18)''.
    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply to amounts paid for 
        qualified health insurance for months beginning with August 
        2003.
            (2) Technical amendments.--The amendments made by 
        subsection (d) shall take effect as if included in the 
        enactment of section 202 of the Trade Act of 2002 (Public Law 
        107-210; 116 Stat. 960).
                                 <all>
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