Public Safety Officer Health Improvement Act of 2022
Bill: S.4267 | Sponsor: Sen. Bennet, Michael F. (D-CO)
Policy area: Taxation

Summary:
Public Safety Officer Health Improvement Act of 2022
This bill allows eligible retired public safety officers who have not attained age 65 a tax credit for up to $4,800 of their costs for qualified health insurance premiums (i.e., premiums for coverage for eligible retired public safety officers, their spouses, and dependents by an accident or health plan or qualified long-term care insurance contract). It also provides for an inflation adjustment to the $3,000 exclusion amount for distributions from employer retirement plans to pay for the health and long-term insurance premiums of such public safety officers.

To amend the Internal Revenue Code of 1986 to create a tax credit for 
 qualified health insurance premiums of eligible retired public safety 
                   officers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Safety Officer Health 
Improvement Act of 2022''.

SEC. 2. CREDIT FOR QUALIFIED HEALTH INSURANCE PREMIUMS OF ELIGIBLE 
              RETIRED PUBLIC SAFETY OFFICERS.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 25D the following new section:

``SEC. 25E. QUALIFIED HEALTH INSURANCE PREMIUMS OF ELIGIBLE RETIRED 
              PUBLIC SAFETY OFFICERS.

    ``(a) Allowance of Credit.--In the case of an individual who is an 
eligible retired public safety officer, there shall be allowed as a 
credit against the tax imposed by this chapter for the taxable year in 
an amount equal to so much of the amount paid by such individual for 
qualified health insurance premiums for such taxable year as does not 
exceed $4,800.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible retired public safety officer.--The term 
        `eligible retired public safety officer' has the meaning given 
        such term by section 402(l)(4)(B), except that such term shall 
        not include any individual who has attained age 65.
            ``(2) Qualified health insurance premiums.--The term 
        `qualified health insurance premiums' has the meaning given 
        such term by section 402(l)(4)(D).
    ``(c) Adjustment for Inflation.--In the case of a taxable year 
beginning after December 31, 2023, the $4,800 amount in subsection (a) 
shall be increased by an amount equal to--
            ``(1) such amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for the calendar year in which the taxable year 
        begins, determined by substituting `2022' for `2016' in 
        subparagraph (A)(ii) thereof.
If any amount as adjusted under the preceding sentence is not a 
multiple of $5, such amount shall be rounded to the next lowest 
multiple of $5.
    ``(d) Denial of Double Benefit.--No credit shall be allowed under 
this section for a taxable year if the individual (or the individual's 
spouse) has made the election described in paragraph (6) of section 
402(l) for such taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Qualified health insurance premiums of eligible retired 
                            public safety officers.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2022.

SEC. 3. ADJUSTMENT FOR INFLATION OF EXCLUSION OF DISTRIBUTIONS FOR 
              QUALIFIED HEALTH INSURANCE PREMIUMS OF ELIGIBLE RETIRED 
              PUBLIC SAFETY OFFICERS.

    (a) In General.--Paragraph (5) of section 402(l) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(C) Adjustment for inflation.--In the case of a 
                taxable year beginning after December 31, 2023, the 
                $3,000 amount in paragraph (2) shall be increased by an 
                amount equal to--
                            ``(i) such amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `2022' for `2016' in 
                        subparagraph (A)(ii) thereof.
                If any amount as adjusted under the preceding sentence 
                is not a multiple of $5, such amount shall be rounded 
                to the next lowest multiple of $5.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2022.
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