I 
109TH CONGRESS 
1ST SESSION H. R. 4219 
To amend the Internal Revenue Code of 1986 to allow individuals a refund-
able credit against income tax for the purchase of private health insur-
ance. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 3, 2005 
Mr. MCHUGH 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 allow indi-
viduals a refundable credit against income tax for the 
purchase of private health insurance. 
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 ‘‘Health Insurance Tax 
Relief Act of 2005’’. 
SEC. 2. REFUNDABLE CREDIT FOR HEALTH INSURANCE 
COVERAGE. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. HEALTH INSURANCE COSTS. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter an amount equal to the amount paid dur-
ing the taxable year for qualified health insurance for the 
taxpayer, his spouse, and dependents. 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The amount allowed as a 
credit under subsection (a) to the taxpayer for the 
taxable year shall not exceed the sum of the monthly 
limitations for coverage months during such taxable 
year for each individual referred to in subsection (a) 
for whom the taxpayer paid during the taxable year 
any amount for coverage under qualified health in-
surance. 
‘‘(2) PHASEOUT OF AMOUNT.— 
‘‘(A) REDUCTION
BASED
ON
ADJUSTED 
GROSS INCOME.—The amount determined under 
paragraph (1) for any taxable year shall be re-
duced (but not below zero) by the amount de-
termined under subparagraph (B).
‘‘(B) 
AMOUNT
OF
REDUCTION.—The 
amount determined under this subparagraph 
with respect to any amount determined under 
paragraph (1) shall be the amount which bears 
the same ratio to such amount determined 
under paragraph (1) as— 
‘‘(i) the excess of— 
‘‘(I) 
the 
taxpayer’s 
adjusted 
gross income for such taxable year, 
over 
‘‘(II) 
the 
applicable 
dollar 
amount, bears to 
‘‘(ii) $10,000. 
The rules of subparagraphs (B) and (C) of sec-
tion 219(g)(2) shall apply to any reduction 
under this subparagraph. 
‘‘(C) DEFINITIONS.—For purposes of this 
paragraph— 
‘‘(i) adjusted gross income shall be de-
termined in the same manner as under sec-
tion 408A(c)(3)(C)(i), and 
‘‘(ii) the applicable dollar amount is— 
‘‘(I) in the case of a taxpayer fil-
ing a joint return, $105,000,
‘‘(II) in the case of any other 
taxpayer (other than a married indi-
vidual 
filing 
a 
separate 
return), 
$65,000, and 
‘‘(III) in the case of a married 
individual filing a separate return, 
zero. 
‘‘(3) MONTHLY LIMITATION.— 
‘‘(A) IN GENERAL.—The monthly limita-
tion for an individual for each coverage month 
of such individual during the taxable year is the 
amount equal to 1⁄12 of— 
‘‘(i) the base amount, plus 
‘‘(ii) 50 percent of the amount paid in 
excess of the base amount. 
‘‘(B) BASE AMOUNT.—For purposes of this 
paragraph, the base amount is— 
‘‘(i) $1,000 if such individual is the 
taxpayer, 
‘‘(ii) $1,000 if— 
‘‘(I) such individual is the spouse 
of the taxpayer, 
‘‘(II) the taxpayer and such 
spouse are married as of the first day 
of such month, and
‘‘(III) the taxpayer files a joint 
return for the taxable year, and 
‘‘(iii) $500 if such individual is an in-
dividual for whom a deduction under sec-
tion 151(c) is allowable to the taxpayer for 
such taxable year. 
‘‘(C) LIMITATION
TO
DEPENDENTS.— 
Not more than 2 individuals may be taken into 
account by the taxpayer under subparagraph 
(B)(iii). 
‘‘(D) SPECIAL RULE FOR MARRIED INDI-
VIDUALS.—In the case of an individual— 
‘‘(i) who is married (within the mean-
ing of section 7703) as of the close of the 
taxable year but does not file a joint return 
for such year, and 
‘‘(ii) who does not live apart from 
such individual’s spouse at all times during 
the taxable year, 
the limitation imposed by subparagraph (C) 
shall be divided equally between the individual 
and the individual’s spouse unless they agree on 
a different division. 
‘‘(4) COVERAGE MONTH.—For purposes of this 
subsection—