same manner as such penalties apply to a person in viola-
tion of subsection (a) of such section. 
SEC. 10. TREATMENT OF EMPLOYER-PROVIDED EMPLOYEE 
INDEPENDENT HEALTH RECORD BANK AC-
COUNT FEES. 
(a) IN GENERAL.—Section 162 of the Internal Rev-
enue Code of 1986 (relating to trade or business expenses) 
is amended by redesignating subsection (q) as subsection 
(r) and by inserting after subsection (p) the following new 
subsection: 
‘‘(q) TREATMENT
OF EMPLOYER-PROVIDED EM-
PLOYEE INDEPENDENT HEALTH RECORD BANK AC-
COUNT FEES.— 
‘‘(1) IN GENERAL.—In the case of a taxpayer, 
there shall be allowed as a deduction under this sec-
tion an amount equal to the independent health 
record bank account investment provided by such 
taxpayer during the taxable year. 
‘‘(2) INDEPENDENT HEALTH RECORD BANK AC-
COUNT
INVESTMENT.—For purposes of this sub-
section, the term ‘independent health record bank 
account investment’ means, with respect to each em-
ployee of the taxpayer for any taxable year, an 
amount equal to the the cost paid by the taxpayer 
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during the taxable year for such employee to main-
tain an independent health record bank account. 
‘‘(3) INDEPENDENT HEALTH RECORD BANK AC-
COUNT.—For purposes of this subsection, the term 
‘independent health record bank account’ has the 
meaning given to the term ‘account’ under section 
3(1) of the Independent Health Record Bank Act of 
2006. 
‘‘(4) SPECIAL RULES.—No credit or deduction 
(other than under this subsection) shall be allowed 
under this chapter with respect to any expense 
which is taken into account under paragraph (1) in 
determining the deduction under this subsection. 
‘‘(5) REPORTS.— 
‘‘(A) IN GENERAL.—Each taxpayer shall 
make such reports to the Chairman of the Fed-
eral Reserve Board of Governors and to employ-
ees of the taxpayer regarding— 
‘‘(i) independent health record bank 
account investments made with respect to 
such employees during any calendar year, 
and 
‘‘(ii) such other information as the 
Chairman may require. 
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‘‘(B) TIME FOR MAKING REPORTS.—The 
reports required by this subsection— 
‘‘(i) shall be filed at such time and in 
such manner as the Chairman of the Fed-
eral Reserve Board of Governors pre-
scribes, and 
‘‘(ii) shall be furnished to employees— 
‘‘(I) not later than January 31 of 
the calendar year following the cal-
endar year to which such reports re-
late, and 
‘‘(II) in such manner as the 
Chairman prescribes. 
‘‘(6) REGULATIONS.—The Secretary may pre-
scribe such regulations as may be necessary or ap-
propriate to carry out this subsection. 
‘‘(7) APPLICATION OF SUBSECTION.—This sub-
section shall apply with respect to any independent 
health record bank account investments made by the 
taxpayer for the 5-taxable year period beginning 
with the first taxable year during which such invest-
ments are made by the taxpayer.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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(c) ADDITIONAL INCENTIVE FOR CONSUMERS PAR-
TICIPATING IN IHRB.—Revenue generated by an inde-
pendent health record bank and received by an account 
holder, health care entity, or health care payer shall not 
be considered taxable income under the Internal Revenue 
Code of 1986. 
Æ 
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