I 
115TH CONGRESS 
1ST SESSION 
H. R. 432 
To amend the Internal Revenue Code of 1986 to expand and modify the 
credit for employee health insurance expenses of small employers. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 11, 2017 
Ms. DELBENE (for herself, Mr. KIND, Mr. RUPPERSBERGER, and Ms. 
KUSTER of New Hampshire) introduced the following bill; which was re-
ferred to the Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to expand 
and modify the credit for employee health insurance ex-
penses of small 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 ‘‘Small Business Tax 
Credit Accessibility Act’’. 
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SEC. 2. EXPANSION AND MODIFICATION OF CREDIT FOR 
EMPLOYEE HEALTH INSURANCE EXPENSES 
OF SMALL EMPLOYERS. 
(a) EXPANSION OF DEFINITION OF ELIGIBLE SMALL 
EMPLOYER.—Subparagraph (A) of section 45R(d)(1) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘25’’ and inserting ‘‘50’’. 
(b) AMENDMENT TO PHASEOUT DETERMINATION.— 
Subsection (c) of section 45R of the Internal Revenue 
Code of 1986 is amended to read as follows: 
‘‘(c) PHASEOUT
OF CREDIT AMOUNT BASED
ON 
NUMBER OF EMPLOYEES AND AVERAGE WAGES.—The 
amount of the credit determined under subsection (b) 
(without regard to this subsection) shall be adjusted (but 
not below zero) by multiplying such amount by the prod-
uct of— 
‘‘(1) the lesser of— 
‘‘(A) a fraction the numerator of which is 
the excess (if any) of 50 over the total number 
of full-time equivalent employees of the em-
ployer and the denominator of which is 30, and 
‘‘(B) 1, and 
‘‘(2) the lesser of— 
‘‘(A) a fraction— 
‘‘(i) the numerator of which is the ex-
cess (if any) of— 
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‘‘(I) the dollar amount in effect 
under subsection (d)(3)(B) for the 
taxable year, multiplied by 3, over 
‘‘(II) the average annual wages 
of the employer for such taxable year, 
and 
‘‘(ii) the denominator of which is the 
dollar amount so in effect under subsection 
(d)(3)(B), multiplied by 2, and 
‘‘(B) 1.’’. 
(c) EXTENSION OF CREDIT PERIOD.—Paragraph (2) 
of section 45R(e) of the Internal Revenue Code of 1986 
is amended by striking ‘‘2-consecutive-taxable year pe-
riod’’ and all that follows and inserting ‘‘3-consecutive-tax-
able year period beginning with the first taxable year be-
ginning after 2014 in which— 
‘‘(A) the employer (or any predecessor) of-
fers one or more qualified health plans to its 
employees through an Exchange, and 
‘‘(B) the employer (or any predecessor) 
claims the credit under this section.’’. 
(d) AVERAGE ANNUAL WAGE LIMITATION.—Sub-
paragraph (B) of section 45R(d)(3) of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
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‘‘(B) DOLLAR AMOUNT.—For purposes of 
paragraph (1)(B) and subsection (c)(2), the 
dollar amount in effect under this paragraph is 
the amount equal to 110 percent of the poverty 
line (within the meaning of section 36B(d)(3)) 
for a family of 4.’’. 
(e) 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’’. 
(f) 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.’’. 
(g) CONFORMING AMENDMENT RELATING TO AN-
NUAL WAGE LIMITATION.—Subparagraph (B) of section 
45R(d)(1) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘twice’’ and inserting ‘‘three times’’. 
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(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred in tax-
able years beginning after December 31, 2016. 
Æ 
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