Title: Health Care for Small Business Act
Policy area: Taxation

Summary:
Health Care for Small Business Act
This bill amends the Internal Revenue Code, with respect to the tax credit for the employee health insurance expenses of small employers, to: (1) repeal the two-year limit on the credit period to permit certain small employers to be eligible for the credit in any year, (2) replace the formula for the phaseout of the credit based on the number of employees and average annual wages with a new phaseout formula based only on average annual wages, (3) permit certain employers that have no more than 50 employees (25 under current law) to be eligible for the credit, (4) modify the limit on the average annual wages of an eligible small employer, and (5) provide for a cost-of-living adjustment after 2017.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1254 Introduced in Senate (IS)]

<DOC>






115th CONGRESS
  1st Session
                                S. 1254

To amend the Internal Revenue Code of 1986 to expand the small employer 
                        health insurance credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 25, 2017

Ms. Stabenow (for herself, Mr. Peters, and Ms. Baldwin) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to expand the small employer 
                        health insurance credit.

    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 ``Health Care for Small Business 
Act''.

SEC. 2. EXPANSION OF SMALL EMPLOYER HEALTH INSURANCE CREDIT.

    (a) In General.--Section 45R of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (a), by striking ``in the credit 
        period'',
            (2) by amending subsection (c) to read as follows:
    ``(c) Phaseout of Credit Amount Based on Average Wages.--The amount 
of the credit determined under subsection (b) without regard to this 
subsection shall be reduced (but not below zero) by such amount 
multiplied by a fraction--
            ``(1) the numerator of which is the average annual wages of 
        the employer in excess of the dollar amount in effect under 
        subsection (d)(3)(B), and
            ``(2) the denominator which is the amount equal to the 
        difference between--
                    ``(A) the dollar amount in effect under subsection 
                (d)(1)(B), and
                    ``(B) the dollar amount in effect under subsection 
                (d)(3)(B).'',
            (3) in subsection (d)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (A), by striking ``25'' 
                        and inserting ``50'', and
                            (ii) in subparagraph (B), by striking ``an 
                        amount equal to twice the dollar amount in 
                        effect under paragraph (3)(B) for the taxable 
                        year'' and inserting ``$75,000'', and
                    (B) in paragraph (3), by amending subparagraph (B) 
                to read as follows:
                    ``(B) Dollar amount.--The dollar amount under this 
                subparagraph shall be $50,000.'',
            (4) in subsection (e)--
                    (A) by striking paragraph (2), and
                    (B) by redesignating paragraphs (3) through (5) as 
                paragraphs (2) through (4), respectively,
            (5) by amending subsection (g) to read as follows:
    ``(g) Cost-of-Living Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2017, each dollar amount in 
        paragraphs (1)(B) and (3)(B) of subsection (d) shall be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year, 
                determined by substituting `calendar year 2016' for 
                `calendar year 1992' in subparagraph (B) thereof.
            ``(2) Rounding.--If any increase under paragraph (1) is not 
        a multiple of $1,000, such increase shall be rounded to the 
        next lowest multiple of $1,000.'', and
            (6) in subsection (i), by striking ``2-year limit on the 
        credit period through the use of successor entities and the 
        avoidance of the limitations'' and inserting ``limitation''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.
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