amount shall be required to make the return under sub-
section (a).’’. 
(2) ASSESSABLE PENALTIES.— 
(A) 
Subparagraph 
(B) 
of 
section 
6724(d)(1) of such Code (relating to defini-
tions) is amended by redesignating clauses (xiii) 
through (xviii) as clauses (xiv) through (xix), 
respectively, and by inserting after clause (xii) 
the following: 
‘‘(xiii) section 6050U (relating to re-
turns relating to payments for qualified 
health insurance),’’. 
(B) Paragraph (2) of section 6724(d) of 
such Code is amended by striking ‘‘or’’ at the 
end of subparagraph (AA), by striking the pe-
riod at the end of the subparagraph (BB) and 
inserting ‘‘, or’’, and by adding at the end the 
following: 
‘‘(CC) section 6050U(d) (relating to re-
turns relating to payments for qualified health 
insurance).’’. 
(3) CLERICAL AMENDMENT.—The table of sec-
tions for subpart B of part III of subchapter A of 
chapter 61 of such Code is amended by inserting
after the item relating to section 6050T the fol-
lowing: 
‘‘Sec. 6050U. Returns relating to payments for qualified health insurance.’’. 
(c) CRIMINAL PENALTY FOR FRAUD.—Subchapter B 
of chapter 75 of the Internal Revenue Code of 1986 (relat-
ing to other offenses) is amended by adding at the end 
the following: 
‘‘SEC. 7276. PENALTIES FOR OFFENSES RELATING TO 
HEALTH INSURANCE TAX CREDIT. 
‘‘Any person who knowingly misuses Department of 
the Treasury names, symbols, titles, or initials to convey 
the false impression of association with, or approval or en-
dorsement by, the Department of the Treasury of any in-
surance products or health coverage in connection with the 
credit for health insurance costs under section 36A shall 
on conviction thereof be fined not more than $10,000, or 
imprisoned not more than 1 year, or both.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting be-
fore the period ‘‘, or from section 36A of such 
Code’’. 
(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 36 the following new item: 
‘‘Sec. 36A. Health insurance costs for uninsured individuals.’’. 
(3) The table of sections for subchapter B of 
chapter 75 of such Code is amended by adding at 
the end the following: 
‘‘Sec. 7276. Penalties for offenses relating to health insurance tax credit.’’. 
(e) EFFECTIVE DATES.— 
(1) IN GENERAL.—Except as provided in para-
graph (2), the amendments made by this section 
shall apply to taxable years beginning after Decem-
ber 31, 2005. 
(2) PENALTIES.—The amendments made by 
subsections (c) and (d)(4) shall take effect on the 
date of the enactment of this Act. 
SEC. 5. ADVANCE PAYMENT OF CREDIT TO ISSUERS OF 
QUALIFIED HEALTH INSURANCE. 
(a) IN GENERAL.—Chapter 77 of the Internal Rev-
enue Code of 1986 (relating to miscellaneous provisions) 
is amended by adding at the end the following: 
‘‘SEC. 7529. ADVANCE PAYMENT OF CREDIT FOR HEALTH 
INSURANCE COSTS OF ELIGIBLE INDIVID-
UALS. 
‘‘Not later than July 1, 2007, the Secretary shall es-
tablish a program for making payments to providers of 
qualified health insurance (as defined in section 36A(d))
on behalf of individuals eligible for the credit under section 
36A. Such payments shall be made on the basis of modi-
fied adjusted gross income of eligible individuals for the 
preceding taxable year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 77 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘Sec. 7529. Advance payment of credit for health insurance costs of eligible in-
dividuals.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on July 1, 2007. 
Æ