Small Business Tax Credits Improvement Act

Bill: 113-s-1325
Sponsor: full_name: Sen. Begich, Mark [D-AK]
Introduced: 2013-07-18
Policy area: Taxation
Subjects: Employee benefits and pensions

Health care costs and insurance

Income tax credits

Small business

Wages and earnings
Latest action: action_date: 2013-07-18
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2013-07-18
action_desc: Introduced in Senate
text: <p>Small Business Tax Credits Improvement Act - Amends the Internal Revenue Code, with respect to the tax credit for the health insurance expenses of small employers, to: (1) expand eligibility for the credit to employers having up to 50 (currently, 25) full-time equivalent employees whose annual wages do not exceed $75,000 (currently, $50,000); (2) raise the employee threshold for triggering the phaseout of such credit from 10 to 20 full-time employees; (3) eliminate the requirement that employers contribute the same percentage of cost of each employee's health insurance and the cap limiting eligible employer contributions to average premiums paid to a state health care exchange; and (4) make such credit available to employee-owners and their dependents.</p>

tv_txt: II 113th CONGRESS 1st Session S. 1325 IN THE SENATE OF THE UNITED STATES July 18, 2013 Mr. Begich (for himself and Ms. Landrieu ) 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 modify the small employer health insurance credit, and for other purposes.

1. Short title This Act may be cited as the Small Business Tax Credits Improvement Act . 2. Modification of small employer health insurance credit (a) Increase in eligible business size (1) In general Subparagraph (A) of section 45R(d)(1) of the Internal Revenue Code of 1986 is amended by striking 25 and inserting 50 . (2) Phaseout amount Paragraph (1) of section 45R(c) of such Code is amended— (A) by striking 10 and inserting 20 , and (B) by striking 15 and inserting 30 . (3) Maximum average annual wages Subparagraph (B) of section 45R(d)(3) of such Code is amended— (A) by redesignating clause (ii) as clause (iii), (B) by striking 2013 in clause (iii), as so redesignated, and inserting 2014 , (C) by striking $25,000 in clause (iii), as so redesignated, and inserting $37,500 , (D) by striking calendar year 2012 in clause (iii), as so redesignated, and inserting calendar year 2013 , and (E) by inserting after clause (i) the following new clause: (ii) 2014 The dollar amount in effect under this paragraph for taxable years beginning in 2014 is $37,500. . (b) Elimination of uniform percentage contribution requirement Paragraph (4) of section 45R(d) of the Internal Revenue Code of 1986 is amended by striking a uniform percentage (not less than 50 percent) and inserting at least 50 percent . (c) Elimination of cap relating to average local premiums Subsection (b) of section 45R of the Internal Revenue Code of 1986 is amended by striking the lesser of and all that follows and inserting the aggregate amount of nonelective contributions the employer made on behalf of its employees during the taxable year under the arrangement described in subsection (d)(4) for premiums for qualified health plans offered by the employer to its employees through an Exchange. . (d) Credit availability for employee-Owners and family members in certain cases Subparagraph (A) of section 45R(e)(1) of the Internal Revenue Code of 1986 is amended— (1) by striking the period at the end and inserting a comma, and (2) by adding at the end the following flush text: unless at least 1 full-time equivalent employee who is not described in clause (i), (ii), (iii), or (iv) for the taxable year was employed by the employer for at least 6 months during the taxable year (or the entire period during the taxable year that the business was in existence, if shorter than 6 months). . (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013.