I 
113TH CONGRESS 
2D SESSION 
H. R. 4128 
To amend the Internal Revenue Code of 1986 to expand and modify the 
credit for employee health insurance expenses of small employers. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 28, 2014 
Ms. DELBENE (for herself, Ms. SHEA-PORTER, and Mr. PALLONE) 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 expand 
and modify the credit for employee health insurance ex-
penses of small employers. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Small Business Tax 
Credit Accessibility Act’’. 
SEC. 2. SENSE OF THE CONGRESS. 
It is the sense of the Congress that the Obama ad-
ministration should work to make the small business 
health care tax credit under section 45R of the Internal 
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Revenue Code of 1986 more accessible for small employ-
ers. 
SEC. 3. EXPANSION AND MODIFICATION OF CREDIT FOR 
EMPLOYEE HEALTH INSURANCE EXPENSES 
OF SMALL EMPLOYERS. 
(a) EXPANSION OF DEFINITION OF ELIGIBLE SMALL 
EMPLOYER.—Subparagraph (A) of section 45R(d)(1) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘25’’ and inserting ‘‘50’’. 
(b) AMENDMENT TO PHASEOUT DETERMINATION.— 
Subsection (c) of section 45R of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(c) PHASEOUT
OF CREDIT AMOUNT BASED
ON 
NUMBER OF EMPLOYEES AND AVERAGE WAGES.—The 
amount of the credit determined under subsection (b) 
(without regard to this subsection) shall be adjusted (but 
not below zero) by multiplying such amount by the prod-
uct of— 
‘‘(1) the lesser of— 
‘‘(A) a fraction the numerator of which is 
the excess (if any) of 50 over the total number 
of full-time equivalent employees of the em-
ployer and the denominator of which is 30, and 
‘‘(B) 1, and 
‘‘(2) the lesser of— 
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‘‘(A) a fraction the numerator of which is 
the excess (if any) of— 
‘‘(i) the dollar amount in effect under 
subsection (d)(3)(B) for the taxable year, 
multiplied by 2, over 
‘‘(ii) the average annual wages of the 
employer for such taxable year, and 
the denominator of which is the dollar amount 
so in effect under subsection (d)(3)(B), and 
‘‘(B) 1.’’. 
(c) PARTIALLY PHASED OUT CREDIT ALLOWED FOR 
INSURANCE OUTSIDE AN EXCHANGE.— 
(1) IN GENERAL.—Section 45R of the Internal 
Revenue Code of 1986 is amended by redesignating 
subsections (h) and (i) as subsections (i) and (j), re-
spectively, and by inserting after subsection (g) the 
following new subsection: 
‘‘(h) PARTIALLY PHASED OUT CREDIT ALLOWED 
FOR INSURANCE OUTSIDE AN EXCHANGE FOR 2014.— 
‘‘(1) IN
GENERAL.—If an eligible small em-
ployer offers to its employees in a manner other 
than through an Exchange a health plan that meets 
the requirements of paragraph (2), the following 
modifications shall apply with respect to a taxable 
year beginning in 2014: 
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‘‘(A) QUALIFIED
HEALTH
PLAN.—This 
section and section 280C(h) shall be applied for 
such taxable year by treating such plan as a 
qualified health plan. 
‘‘(B) REDUCED
CREDIT
PERCENTAGE.— 
Subsection (b) shall be applied— 
‘‘(i) by substituting ‘25 percent’ for 
‘35 percent’, 
‘‘(ii) by substituting ‘35 percent’ for 
‘50 percent’, and 
‘‘(iii) without regard to ‘through an 
Exchange’ in paragraph (1) thereof. 
‘‘(C) CONTRIBUTION
ARRANGEMENTS.— 
Subsection (d)(4) shall be applied without re-
gard to ‘through an exchange’. 
‘‘(D) CREDIT PERIOD.— 
‘‘(i) IN GENERAL.—The credit under 
this section shall be determined without re-
gard to whether such taxable year is in a 
credit period. 
‘‘(ii) YEAR TAKEN INTO ACCOUNT AS 
PORTION
OF
CREDIT
PERIOD
IN
SUBSE-
QUENT YEARS.—For purposes of applying 
this section to taxable years beginning 
after 2014 in which the employer offers a 
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qualified health plan (without regard to 
subparagraph 
(A)) 
to 
its 
employees 
through an Exchange, subsection (e)(2) 
shall be applied by substituting ‘2-consecu-
tive-taxable’ for ‘3-consecutive-taxable’. 
‘‘(2) REQUIREMENTS.—A health plan meets the 
requirements of this paragraph if such plan— 
‘‘(A) provides the essential health benefits 
package described in section 1302(a) of the Pa-
tient Protection and Affordable Care Act, and 
‘‘(B) is offered by a health insurance 
issuer that— 
‘‘(i) is licensed and in good standing 
to offer health insurance coverage in each 
State in which such issuer offers health in-
surance coverage, and 
‘‘(ii) if such issuer offers health plans 
through an Exchange, agrees to charge the 
same premium rate for each qualified 
health plan of the issuer without regard to 
whether the plan is offered through an Ex-
change or whether the plan is offered di-
rectly from the issuer or through an 
agent.’’. 
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(2) 
CONFORMING
AMENDMENT.—Section 
6055(b)(2)(C) of such Code is amended by striking 
‘‘Exchange’’ and inserting ‘‘Exchange (or a plan 
with respect to which a credit is allowed under sec-
tion 45R by reason of subsection (h) thereof)’’. 
(d) EXTENSION OF CREDIT PERIOD.—Paragraph (2) 
of section 45R(e) of the Internal Revenue Code of 1986 
is amended by striking ‘‘2-consecutive-taxable’’ and insert-
ing ‘‘3-consecutive-taxable’’. 
(e) AVERAGE ANNUAL WAGE LIMITATION.—Sub-
paragraph (B) of section 45R(d)(3) of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘(B) DOLLAR AMOUNT.—For purposes of 
paragraph (1)(B) and subsection (c)(2), the 
dollar amount in effect under this paragraph is 
the amount equal to 110 percent of the poverty 
line (within the meaning of section 36B(d)(3)) 
for a family of 4.’’. 
(f) ELIMINATION OF UNIFORM PERCENTAGE CON-
TRIBUTION REQUIREMENT.—Paragraph (4) of section 
45R(d) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘a uniform percentage (not less than 50 per-
cent)’’ and inserting ‘‘at least 50 percent’’. 
(g) ELIMINATION OF CAP RELATING TO AVERAGE 
LOCAL PREMIUMS.—Subsection (b) of section 45R of the 
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Internal Revenue Code of 1986 is amended by striking 
‘‘the lesser of’’ and all that follows and inserting ‘‘the ag-
gregate amount of nonelective contributions the employer 
made on behalf of its employees during the taxable year 
under the arrangement described in subsection (d)(4) for 
premiums for qualified health plans offered by the em-
ployer to its employees through an Exchange.’’. 
(h) CREDIT AVAILABILITY FOR FAMILY MEMBERS IN 
CERTAIN CASES.—Clause (iv) of section 45R(e)(1)(A) of 
the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(iv) any individual who is a spouse 
or dependent (within the meaning of sec-
tion 152) of an individual described in 
clause (i), (ii), or (iii).’’. 
(i) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2013. 
Æ 
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