I 
108TH CONGRESS 
1ST SESSION H. R. 3601
To amend the Internal Revenue Code of 1986 to protect the health benefits 
of steel industry retirees by expanding the availability of the refundable 
tax credit to the health insurance costs paid by former employers. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 21, 2003
Mr. ENGLISH (for himself and Mr. CARDIN) 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 protect 
the health benefits of steel industry retirees by expanding 
the availability of the refundable tax credit to the health 
insurance costs paid by former 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 ‘‘Steel Industry Retiree 
Benefits Protection Act of 2003’’.
SEC. 2. EXTENSION OF REFUNDABLE CREDIT TO FORMER 
EMPLOYERS FOR HEALTH INSURANCE PAY-
MENTS FOR CERTAIN STEEL INDUSTRY RE-
TIREES. 
(a) IN GENERAL.—Subsection (a) of section 35 of the 
Internal Revenue Code of 1986 is amended to read as fol-
lows: 
‘‘(a) IN GENERAL.—
‘‘(1) CREDIT ALLOWED TO ELIGIBLE INDIVID-
UALS.—In the case of an individual, there shall be 
allowed as a credit against the tax imposed by sub-
title A an amount equal to 65 percent of the amount 
paid by the taxpayer for coverage of the taxpayer 
and qualifying family members under qualified 
health insurance for eligible coverage months begin-
ning in the taxable year. 
‘‘(2) CREDIT ALLOWED FOR PAYMENTS FOR EL-
IGIBLE STEEL INDUSTRY RETIREES.—In the case of 
a qualified steel company, there shall be allowed as 
a credit against the tax imposed by subtitle A an 
amount equal to 65 percent of the amount paid dur-
ing the taxable year by the qualified steel company 
for qualifying coverage of an eligible steel industry 
retiree and qualifying family members under quali-
fied health insurance.
For purposes of paragraphs (1) and (2), amounts paid for 
coverage shall not include any premiums paid for the 
Medicare supplemental insurance program established 
under part B of title XVIII of the Social Security Act.’’. 
(b) QUALIFYING COVERAGE.—Subsection (g) of sec-
tion 35 of such Code (relating to special rules) is amended 
by redesignating paragraph (9) as paragraph (10) and in-
serting after paragraph (8) the following new paragraph: 
‘‘(9) QUALIFYING COVERAGE.—For purposes of 
subsection (a)(2)—
‘‘(A) IN GENERAL.—Coverage shall not be 
treated as qualifying coverage unless at least 50 
percent of the cost of such coverage for all eligi-
ble steel industry retirees who are retired from 
the applicable qualified steel company, and 
qualifying family members, determined on a 
combined basis, for such taxable year is paid or 
incurred by such qualified steel company. 
‘‘(B) SPECIAL
RULE
RELATING
TO
COL-
LECTIVE BARGAINING.—Subparagraph (A) may 
be satisfied separately with respect to coverage 
provided to eligible steel industry retirees pur-
suant to a collective bargaining agreement.’’. 
(c) DEFINITION OF ELIGIBLE STEEL INDUSTRY RE-
TIREE.—
(1) IN GENERAL.—Subsection (c) of section 35 
of such Code is amended by adding at the end the 
following new paragraph: 
‘‘(5) ELIGIBLE STEEL INDUSTRY RETIREE.—
‘‘(A) IN
GENERAL.—The term ‘eligible 
steel industry retiree’ means, with respect to 
any month, any individual who—
‘‘(i) is a retiree of a qualified steel 
company, and 
‘‘(ii) is receiving retiree health bene-
fits in accordance with an employee benefit 
plan (within the meaning of section 3 (3) 
of the Employee Retirement Income Secu-
rity Act of 1974) which is established, 
maintained, or contributed to by the retir-
ee’s former employer and is in effect on or 
after January 1, 2000, or is no longer re-
ceiving such benefits as a result of the ter-
mination of coverage under such benefit 
plan on or after January 1, 2000, pursu-
ant to an order of bankruptcy court, by op-
eration of bankruptcy law, or by agreement 
with an authorized representative as pro-
vided in section 1114 of title 11, United 
States Code.