Public Safety Officer Health Improvement Act of 2022

To amend the Internal Revenue Code of 1986 to create a tax credit for qualified health insurance premiums of eligible retired public safety officers, and for other purposes. 1. Short title This Act may be cited as the Public Safety Officer Health Improvement Act of 2022 2. Credit for qualified health insurance premiums of eligible retired public safety officers (a) In general Subpart A of part IV of subchapter A of chapter 1 25E. Qualified health insurance premiums of eligible retired public safety officers (a) Allowance of credit In the case of an individual who is an eligible retired public safety officer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year in an amount equal to so much of the amount paid by such individual for qualified health insurance premiums for such taxable year as does not exceed $4,800. (b) Definitions For purposes of this section— (1) Eligible retired public safety officer The term eligible retired public safety officer (2) Qualified health insurance premiums The term qualified health insurance premiums (c) Adjustment for inflation In the case of a taxable year beginning after December 31, 2023, the $4,800 amount in subsection (a) shall be increased by an amount equal to— (1) such amount, multiplied by (2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2022 2016 If any amount as adjusted under the preceding sentence is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5. (d) Denial of double benefit No credit shall be allowed under this section for a taxable year if the individual (or the individual's spouse) has made the election described in paragraph (6) of section 402(l) for such taxable year. . (b) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 Sec. 25E. Qualified health insurance premiums of eligible retired public safety officers. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 3. Adjustment for inflation of exclusion of distributions for qualified health insurance premiums of eligible retired public safety officers (a) In general Paragraph (5) of section 402(l) (C) Adjustment for inflation In the case of a taxable year beginning after December 31, 2023, the $3,000 amount in paragraph (2) shall be increased by an amount equal to— (i) such amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting 2022 2016 If any amount as adjusted under the preceding sentence is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2022.

Summary: Public Safety Officer Health Improvement Act of 2022 This bill allows eligible retired public safety officers who have not attained age 65 a tax credit for up to $4,800 of their costs for qualified health insurance premiums (i.e., premiums for coverage for eligible retired public safety officers, their spouses, and dependents by an accident or health plan or qualified long-term care insurance contract). It also provides for an inflation adjustment to the $3,000 exclusion amount for distributions from employer retirement plans to pay for the health and long-term insurance premiums of such public safety officers.