‘‘(11) CREDIT ALLOWED BASED ON RESIDENCY
IN CERTAIN CASES.—In the case of a taxpayer—
‘‘(A) who does not satisfy the household
maintenance test of subsection (a) for any pe-
riod, but
‘‘(B) whose principal place of abode for
such period is also the principal place of abode
of any qualifying individual,
then such taxpayer shall be treated as satisfying
such test for such period but the amount of credit
allowable under this section with respect to such in-
dividual shall be determined by allowing only 1⁄12 of
the limitation under subsection (c)(1) for each full
month that the requirement of subparagraph (B) is
met.’’
(c) 
INFLATION
ADJUSTMENT
OF
DOLLAR
AMOUNTS.—
(1) Section 21 of such Code is amended by re-
designating subsection (f) as subsection (g) and by
inserting after subsection (e) the following new sub-
section:
‘‘(f) INFLATION ADJUSTMENT.—In the case of any
taxable year beginning in a calendar year after 2000, the
$30,000 amount contained in subsection (a), the $2,400
amount in subsection (c), and the $500 amount in sub-
section (f) shall be increased by an amount equal to—
‘‘(1) such dollar amount, multiplied by
‘‘(2) the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year by sub-
stituting ‘calendar year 1999’ for ‘calendar year
1992’ in subparagraph (B) thereof.
If the increase determined under the preceding sentence
is not a multiple of $50, such amount shall be rounded
to the next lowest multiple of $50.’’
(2) Paragraph (2) of section 21(c) of such Code
is amended by striking ‘‘$4,800’’ and inserting
‘‘twice the dollar amount applicable under paragraph
(1)’’.
(3) Paragraph (2) of section 21(d) of such Code
is amended by striking ‘‘less than—’’ and all that
follows through the end of the first sentence and in-
serting ‘‘less than 1⁄12 of the amount which applies
under subsection (c) to the taxpayer for the taxable
year.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1999.
SEC. 6. DEDUCTION FOR HEALTH INSURANCE COSTS FOR
SELF-EMPLOYED INDIVIDUALS.
(a) IN GENERAL.—Paragraph (1) of section 162(l)
of the Internal Revenue Code of 1986 is amended to read
as follows:
‘‘(1) ALLOWANCE OF DEDUCTION.—In the case
of an individual who is an employee within the
meaning of section 401(c)(1), there shall be allowed
as a deduction under this section 100 percent of the
amount paid during the taxable year for insurance
which constitutes medical care for the taxpayer, his
spouse, and dependents.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to taxable years beginning after
December 31, 1999.
SEC. 7. INFLATION ADJUSTMENT FOR ALTERNATIVE MIN-
IMUM TAX EXEMPTION AMOUNT FOR INDI-
VIDUALS.
(a) IN GENERAL.—Section 55(d) of the Internal Rev-
enue Code of 1986 (relating to exemption amount) is
amended by adding at the end the following:
‘‘(4) INFLATION ADJUSTMENT.—
‘‘(A) IN
GENERAL.—In the case of any
taxable year beginning in a calendar year after
2002, each of the dollar amounts contained in
paragraphs (1) and (3) shall be increased by an
amount equal to—
‘‘(i) such dollar amount, multiplied by
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins by substituting ‘calendar year 2000’
for ‘calendar year 1992’ in subparagraph
(B) thereof.
‘‘(B) ROUNDING.—If any increase deter-
mined under subparagraph (A) is not a multiple
of $50, such increase shall be rounded to the
nearest multiple of $50.’’
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 2002.
SEC. 8. EFFECTIVE DATE SUBJECT TO ENACTMENT OF LEG-
ISLATION EXTENDING THE SOLVENCY OF SO-
CIAL SECURITY AND MEDICARE.
Notwithstanding any other effective date provision in
this Act, this Act and the amendments made by this Act
shall not take effect until after the enactment of legislation
to extend the solvency of the Federal Old-Age and Sur-
vivors Insurance Trust Fund, the Federal Disability In-
surance Trust Fund, and the Federal Hospital Insurance
Trust Fund, and to ensure that no funds from such trust
funds are used to pay for any tax expenditure resulting
from the provisions of this Act.
Æ