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‘‘(1) CERTAIN RULES MADE APPLICABLE.—For 
purposes of this section, rules similar to the rules of 
section 52 shall apply. 
‘‘(2) AMOUNTS
PAID
UNDER
SALARY
REDUC-
TION ARRANGEMENTS.—No amount paid or incurred 
pursuant to a salary reduction arrangement shall be 
taken into account under subsection (a). 
‘‘(f) TERMINATION.—This section shall not apply to 
expenses paid or incurred by an employer with respect to 
any arrangement established on or after January 1, 
2014.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code (relating to current 
year business credit) is amended by striking ‘‘plus’’ at the 
end of paragraph (18), by striking the period at the end 
of paragraph (19) and inserting ‘‘, plus’’, and by adding 
at the end the following: 
‘‘(20) in the case of a small employer (as de-
fined in section 45J(d)(3)), the health insurance 
credit determined under section 45J(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(e) CREDIT FOR SMALL BUSINESS HEALTH INSUR-
ANCE EXPENSES.—
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‘‘(1) IN GENERAL.—No deduction shall be al-
lowed for that portion of the expenses (otherwise al-
lowable as a deduction) taken into account in deter-
mining the credit under section 45J for the taxable 
year which is equal to the amount of the credit de-
termined for such taxable year under section 45J(a). 
‘‘(2) CONTROLLED
GROUPS.—Persons treated 
as a single employer under subsection (a) or (b) of 
section 52 shall be treated as 1 person for purposes 
of this section.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing: 
‘‘Sec. 45J. Small business health insurance expenses.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2006, for ar-
rangements established after the date of the enactment 
of this Act. 
SEC. 512. CERTAIN GRANTS BY PRIVATE FOUNDATIONS TO 
QUALIFIED HEALTH BENEFIT PURCHASING 
COALITIONS. 
(a) IN GENERAL.—Section 4942 of the Internal Rev-
enue Code of 1986 (relating to taxes on failure to dis-
213 
tribute income) is amended by adding at the end the fol-
lowing: 
‘‘(k) CERTAIN QUALIFIED HEALTH BENEFIT PUR-
CHASING COALITION DISTRIBUTIONS.— 
‘‘(1) IN GENERAL.—For purposes of subsection 
(g), sections 170, 501, 507, 509, and 2522, and this 
chapter, a qualified health benefit purchasing coali-
tion distribution by a private foundation shall be 
considered to be a distribution for a charitable pur-
pose. 
‘‘(2) 
QUALIFIED
HEALTH
BENEFIT
PUR-
CHASING COALITION DISTRIBUTION.—For purposes 
of paragraph (1)— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
health benefit purchasing coalition distribution’ 
means any amount paid or incurred by a pri-
vate foundation to or on behalf of a qualified 
health benefit purchasing coalition (as defined 
in section 9841) for purposes of payment or re-
imbursement of amounts paid or incurred in 
connection with the establishment and mainte-
nance of such coalition. 
‘‘(B) EXCLUSIONS.—Such term shall not 
include any amount used by a qualified health 
benefit purchasing coalition (as so defined)—
214 
‘‘(i) for the purchase of real property, 
‘‘(ii) as payment to, or for the benefit 
of, members (or employees or affiliates of 
such members) of such coalition, or 
‘‘(iii) for any expense paid or incurred 
more than 48 months after the date of es-
tablishment of such coalition. 
‘‘(3) TERMINATION.—This subsection shall not 
apply— 
‘‘(A) to qualified health benefit purchasing 
coalition distributions paid or incurred after 
December 31, 2013, and 
‘‘(B) with respect to start-up costs of a co-
alition which are paid or incurred after Decem-
ber 31, 2014.’’. 
(b) QUALIFIED HEALTH BENEFIT PURCHASING CO-
ALITION.— 
(1) IN GENERAL.—Chapter 100 of such Code 
(relating to group health plan requirements) is 
amended by adding at the end the following new 
subchapter: 
‘‘Subchapter D—Qualified Health Benefit 
Purchasing Coalition 
‘‘Sec. 9841. Qualified health benefit purchasing coalition.