Title: A bill to amend the Internal Revenue Code of 1986 to expand eligibility for the health care tax credit to workers in certain critical industries.
Policy area: Taxation

Summary:
This bill extends the tax credit for health insurance costs to eligible national defense or infrastructure workers. An eligible national defense or infrastructure worker is an individual who was employed in a critical industry as of January 31, 2020, filed for unemployment compensation after such date, and is covered by health insurance. A critical industry is an industry related to critical national infrastructure or national defense and is severely distressed due to COVID-19 (i.e., the coronavirus disease 2019).
The bill also extends the tax credit through 2022.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 3582 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 3582

 To amend the Internal Revenue Code of 1986 to expand eligibility for 
 the health care tax credit to workers in certain critical industries.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 25, 2020

   Ms. Cantwell (for herself, Mr. Jones, Mr. Bennet, and Ms. Sinema) 
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 eligibility for 
 the health care tax credit to workers in certain critical industries.

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

SECTION 1. FINDINGS.

    Congress finds the following:
            (1) In 2018, the United States aerospace and defense 
        manufacturing industry contributed 2,550,000 jobs, accounted 
        for $151,000,000,000 in exports, and supported 1,670,000 supply 
        chain jobs.
            (2) In 2019, aerospace and defense parts manufacturing and 
        distribution across the United States accounted for 
        $25,400,000,000 in economic activity.
            (3) The United States aerospace and defense manufacturing 
        industry is critical to the national economy and national 
        defense.

SEC. 2. EXPANSION OF ELIGIBILITY FOR HEALTH CARE TAX CREDIT.

    (a) In General.--Paragraph (1) of section 35(c) of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
subparagraph (B), by striking the period at the end of subparagraph (C) 
and inserting ``, and'', and by adding at the end the following new 
subparagraph:
                    ``(D) an eligible national defense or 
                infrastructure worker.''.
    (b) Eligible National Defense or Infrastructure Worker.--Subsection 
(c) of section 35 of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new paragraph:
            ``(5) Eligible national defense or infrastructure worker.--
                    ``(A) In general.--The term `eligible national 
                defense or infrastructure worker' means an individual 
                who--
                            ``(i) as of January 31, 2020, was employed 
                        in a critical industry,
                            ``(ii) filed for unemployment compensation 
                        (as defined in section 85(b)) after January 31, 
                        2020, and before the applicable date, and
                            ``(iii) is covered under qualified health 
                        insurance described in subsection (e)(1)(A).
                    ``(B) Critical industry.--For purposes of this 
                paragraph, the term `critical industry' means--
                            ``(i) an industry related to critical 
                        national infrastructure or national defense, or
                            ``(ii) a critical industry which is 
                        severely distressed in connection with the 
                        coronavirus national emergency,
                as determined by the Secretary, including the airport, 
                air carrier (as defined in section 40102 of title 49, 
                United States Code), and aerospace industries.
                    ``(C) Applicable date.--For purposes of this 
                paragraph, the term `applicable date' means the earlier 
                of--
                            ``(i) the date which is 6 months after the 
                        last day on which the coronavirus national 
                        emergency declaration is in effect, or
                            ``(ii) January 1, 2023.
                    ``(D) Coronavirus national emergency.--For purposes 
                of this paragraph--
                            ``(i) In general.--The coronavirus national 
                        emergency is the emergency with respect to 
                        which the President made the declarations 
                        described in clause (ii).
                            ``(ii) Declarations.--The last day on which 
                        the coronavirus national emergency declaration 
                        is in effect is the later of--
                                    ``(I) the last day on which the 
                                declaration of the emergency involving 
                                Federal primary responsibility 
                                determined to exist by the President 
                                under section 501(b) of the Robert T. 
                                Stafford Disaster Relief and Emergency 
                                Assistance Act (42 U.S.C. 5191(b)) with 
                                respect to coronavirus disease 2019 
                                (COVID-19) is in effect; or
                                    ``(II) the last day on which the 
                                declaration of the national emergency 
                                declared by the President under the 
                                National Emergencies Act (50 U.S.C. 
                                1601 et seq.) with respect to 
                                coronavirus disease 2019 (COVID-19) is 
                                in effect.''.
    (c) Advance Payment of Credit.--Paragraph (1) of section 7527(d) of 
the Internal Revenue Code of 1986 is amended by striking ``or'' at the 
end of subparagraph (A), by striking the period at the end of 
subparagraph (B) and inserting ``, or'', and by adding at the end the 
following new subparagraph:
                    ``(C) in the case of an eligible national defense 
                or infrastructure worker (as defined in section 
                35(c)(5)), is certified by the Secretary (or by any 
                other person or entity designated by the Secretary) (in 
                consultation with the Secretary of Transportation (or 
                any other person or entity designated by such 
                Secretary), in the case of a worker in aviation- or 
                aerospace-related industries).''.
    (d) Effective Date.--The amendments made by this section shall 
apply to months beginning after January 31, 2020.

SEC. 3. EXTENSION OF CREDIT.

    (a) In General.--Subparagraph (B) of section 35(b)(1) of the 
Internal Revenue Code of 1986 is amended by striking ``January 1, 
2021'' and inserting ``January 1, 2023''.
    (b) Effective Date.--The amendment made by this section shall apply 
to months beginning after December 31, 2020.
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