‘‘(A) ADJUSTED
COMMUNITY
RATING
OR 
RATING BANDS.—The coverage is provided in a 
State which— 
‘‘(i) has a community rating structure 
that does not permit rating on gender, 
health status or claims experience, or 
‘‘(ii) limits the permitted rate for any 
age group to be no more than 400 percent 
of the lowest rate for all adult age groups. 
‘‘(B) BENEFITS.—The coverage is pro-
vided under a plan that is at least an actuarial 
equivalent to the standard Blue Cross-Blue 
Shield plan offered under the Federal Employ-
ees Health Benefits Program (FEHBP).’’. 
(b) CREDIT ALLOWED AS PART OF GENERAL BUSI-
NESS CREDIT.—Section 38(b) of such Code (defining cur-
rent year business credit) is amended by striking ‘‘plus’’ 
at the end of paragraph (34), by striking the period at 
the end of paragraph (35) and inserting ‘‘, plus’’, and by 
adding at the end the following new paragraph: 
‘‘(36) in the case of an eligible small employer 
(as defined in section 45R(c)), the health insurance 
credit determined under section 45R(a).’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
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1 of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45R. Employee health insurance coverage by small employers.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 
3. 
REFUNDABLE 
SMALL 
BUSINESS 
EMPLOYEE 
HEALTH PREMIUM CREDIT. 
(a) ALLOWANCE OF CREDIT.— 
(1) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code 
of 1986 (relating to refundable personal credits) is 
amended by inserting after section 36A the following 
new section: 
‘‘SEC. 36B. HEALTH INSURANCE COSTS FOR SMALL BUSI-
NESS EMPLOYEES. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual who is an eligible small business employee, there 
shall be allowed as a credit against the tax imposed by 
this subtitle for the taxable year an amount equal to the 
amount paid by the taxpayer during such taxable year for 
qualified health insurance for the taxpayer and the tax-
payer’s spouse and dependents. 
‘‘(b) LIMITATION.—The amount allowed as a credit 
under subsection (a) to the taxpayer for the taxable year 
shall not exceed the sum of the amounts paid by the tax-
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payer for qualified health insurance for each individual re-
ferred to in subsection (a) for coverage months of such 
individual during the taxable year. 
‘‘(c) ELIGIBLE SMALL BUSINESS EMPLOYEE.—For 
purposes of this section, an individual is an eligible small 
business employee for a coverage month if such individual 
is enrolled in qualified health insurance provided through 
an eligible small employer for which a credit is allowable 
under section 45R. 
‘‘(d) QUALIFIED HEALTH INSURANCE; COVERAGE 
MONTH.—For purposes of this section, the terms ‘quali-
fied health insurance’ and ‘coverage month’ have the same 
meanings given such terms by section 45R. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) COORDINATION WITH MEDICAL EXPENSE 
DEDUCTION.—The amount which would (but for this 
paragraph) be taken into account by the taxpayer 
under section 213 for the taxable year shall be re-
duced by the credit (if any) allowed by this section 
to the taxpayer for such year. 
‘‘(2) COORDINATION
WITH
DEDUCTION
FOR 
HEALTH INSURANCE COSTS OF SELF-EMPLOYED IN-
DIVIDUALS.—No credit shall be allowable under this 
section for a taxable year if a deduction is allowed 
under section 162(l) for the taxable year. 
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‘‘(3) COORDINATION WITH SECTION 35.—If a 
taxpayer is eligible for the credit allowed under this 
section and section 35 for any month, the taxpayer 
shall elect which credit is to be allowed with respect 
to such month. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out the pur-
poses of this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting 
‘‘36B,’’ after ‘‘36A,’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by inserting after the 
item relating to section 36A the following new item: 
‘‘Sec. 36B. Health insurance costs for small business employees.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
Æ 
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