‘‘(d) ELIGIBLE INDIVIDUAL.—For purposes of this 
section— 
‘‘(1) IN
GENERAL.—The term ‘eligible indi-
vidual’ means, with respect to any month, an indi-
vidual who— 
‘‘(A) is described in section 223(c)(1) and 
is not covered by a group health plan, and 
‘‘(B) does not have other specified cov-
erage. 
‘‘(2) GROUP HEALTH PLAN.—The term ‘group 
health plan’ has the meaning given such term by 
section 5000 without regard to subsection (d) there-
of. For purposes of the preceding sentence, an ar-
rangement which constitutes individual health insur-
ance shall not be treated as a group health plan if 
such arrangement is a high deductible health plan 
(as defined in section 223(c)(2)), or is a payment by 
an employer or employee organization with respect 
to such high deductible health plan, notwithstanding 
that an employer or employee organization nego-
tiates the cost or benefits of such arrangement. 
‘‘(3) OTHER SPECIFIED COVERAGE.—An indi-
vidual has other specified coverage for any month if, 
as of the first day of such month— 
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‘‘(A) MEDICARE, MEDICAID, SCHIP.—Such 
individual— 
‘‘(i) is entitled to benefits under part 
A of title XVIII of the Social Security Act 
or enrolled under part B of such title, 
‘‘(ii) is enrolled in the program under 
title XIX of the Social Security Act (other 
than under section 1928 of such Act), or 
‘‘(iii) is enrolled in the program under 
title XXI of the Social Security Act. 
‘‘(B) IMPRISONMENT.—Such individual is 
imprisoned under Federal, State, or local au-
thority. 
‘‘(C) 
PHYSICAL
PRESENCE
REQUIRE-
MENTS.—Such individual is present in the 
United States on fewer than 183 days during 
the taxable year (determined in accordance with 
section 7701(b)(7)). 
‘‘(e) OTHER DEFINITIONS.— 
‘‘(1) DEPENDENTS.—For purposes of this sec-
tion— 
‘‘(A) DEPENDENT
DEFINED.—The term 
‘dependent’ has the meaning given such term by 
section 152 (determined without regard to sub-
sections (b)(1), (b)(2), and (d)(1)(B) thereof). 
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‘‘(B) SPECIAL
RULE
FOR
DEPENDENT 
CHILD OF DIVORCED PARENTS.—An individual 
who is a child to whom section 152(e) applies 
shall be treated as a dependent of the custodial 
parent for a coverage month unless the custo-
dial and noncustodial parent provide otherwise. 
‘‘(C) DENIAL
OF
CREDIT
TO
DEPEND-
ENTS.—No credit shall be allowed under this 
section to any individual with respect to whom 
a deduction under section 151(c) is allowable to 
another taxpayer for a taxable year beginning 
in the calendar year in which such individual’s 
taxable year begins. 
‘‘(f) INFLATION ADJUSTMENTS.— 
‘‘(1) 
CREDIT
AND
HEALTH
INSURANCE 
AMOUNTS.—In the case of any taxable year begin-
ning after 2007, each dollar amount referred to in 
subsection (b)(2)(A) shall be increased by an 
amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 213(d)(10)(B)(ii) for the 
calendar year in which the taxable year begins, 
determined by substituting ‘2006’ for ‘1996’ in 
subclause (II) thereof. 
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If any amount as adjusted under the preceding sen-
tence is not a multiple of $10, such amount shall be 
rounded to the nearest multiple of $10. 
‘‘(2) INCOME
PHASEOUT
AMOUNTS.—In the 
case of any taxable year beginning after 2007, each 
dollar amount referred to in paragraphs (4) and (5) 
of subsection (b) shall be increased by an amount 
equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2006’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as adjusted under the preceding sen-
tence is not a multiple of $50, such amount shall be 
rounded to the next lowest multiple of $50. 
‘‘(g) SPECIAL RULES.— 
‘‘(1) COORDINATION
WITH
DEDUCTION
FOR 
PREMIUMS
FOR
HIGH
DEDUCTIBLE
HEALTH 
PLANS.—No credit shall be allowable under this sec-
tion for a taxable year if a deduction is allowed 
under section 224 for the taxable year. 
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