I 
113TH CONGRESS 
2D SESSION 
H. R. 4244 
To amend the Internal Revenue Code of 1986 to modify the small employer 
health insurance credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 13, 2014 
Mr. PETERS of Michigan (for himself, Mr. MURPHY of Florida, and Mr. 
SCHRADER) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to modify 
the small employer health insurance credit, and for other 
purposes. 
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 ‘‘Small Business Health 
Insurance Affordability Act of 2014’’. 
SEC. 2. MODIFICATION OF SMALL EMPLOYER HEALTH IN-
SURANCE CREDIT. 
(a) INCREASE IN ELIGIBLE BUSINESS SIZE.— 
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(1) IN GENERAL.—Subparagraph (A) of section 
45R(d)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘25’’ and inserting ‘‘50’’. 
(2) PHASEOUT AMOUNT BASED ON NUMBER OF 
EMPLOYEES.—Paragraph (1) of section 45R(c) of 
such Code is amended by striking ‘‘10’’ and insert-
ing ‘‘20’’. 
(3) MAXIMUM AVERAGE ANNUAL WAGES.—Sub-
paragraph (B) of section 45R(d)(3) of such Code is 
amended— 
(A) by redesignating clause (ii) as clause 
(iii), 
(B) by striking ‘‘2013’’ in clause (iii), as 
so redesignated, and inserting ‘‘2014’’, 
(C) by striking ‘‘$25,000’’ in clause (iii), 
as so redesignated, and inserting ‘‘$35,000’’, 
(D) by striking ‘‘calendar year 2012’’ in 
clause (iii), as so redesignated, and inserting 
‘‘calendar year 2013’’, and 
(E) by inserting after clause (i) the fol-
lowing new clause: 
‘‘(ii) 2014.—The dollar amount in ef-
fect under this paragraph for taxable years 
beginning in 2014 is $35,000.’’. 
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(b) ELIMINATION OF UNIFORM PERCENTAGE CON-
TRIBUTION REQUIREMENT.—Paragraph (4) of section 
45R(d) of the Internal Revenue Code of 1986 is amended 
by striking ‘‘a uniform percentage (not less than 50 per-
cent)’’ and inserting ‘‘at least 50 percent’’. 
(c) ELIMINATION OF CAP RELATING TO AVERAGE 
LOCAL PREMIUMS.—Subsection (b) of section 45R of the 
Internal Revenue Code of 1986 is amended by striking 
‘‘the lesser of’’ and all that follows and inserting ‘‘the ag-
gregate amount of nonelective contributions the employer 
made on behalf of its employees during the taxable year 
under the arrangement described in subsection (d)(4) for 
premiums for qualified health plans offered by the em-
ployer to its employees through an Exchange.’’. 
(d) CREDIT PERIOD.—Section 45R(e)(2) of the In-
ternal Revenue Code of 1986 is amended by striking ‘‘2- 
consecutive-taxable year period’’ and inserting ‘‘3-consecu-
tive-taxable year period’’. 
(e) COVERAGE
PROVIDING
ESSENTIAL
HEALTH 
BENEFITS THROUGH NON-EXCHANGE PLAN TREATED AS 
QUALIFIED.—Section 45R(e) of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new paragraph: 
‘‘(6) COVERAGE PROVIDING ESSENTIAL HEALTH 
BENEFITS THROUGH NON-EXCHANGE PLAN TREAT-
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