Small Business Health Insurance Affordability Act of 2014

Bill: 113-hr-4244
Sponsor: full_name: Rep. Peters, Gary C. [D-MI-14]
Introduced: 2014-03-13
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: 2014-03-13
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2014-03-13
action_desc: Introduced in House
text: <p>Small Business Health Insurance Affordability Act of 2014 - Amends the Internal Revenue Code, with respect to the small employer health care insurance tax credit, to: (1) revise the definition of "eligible small employer" to mean an employer with not more than 50 (currently, 25) full-time employees; (2)&nbsp;increase the employee threshold from 10 to 20 employees for purposes of determining the maximum allowable amount of such credit; (3)&nbsp;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 health care exchange; and (4) extend from 2 to 3 consecutive taxable years the period during which an employer may claim such credit. Treats health insurance providing essential health benefits as defined by the Patient Protection and Affordable Care Act through a plan not offered through an exchange as a qualified health plan offered through an exchange.</p>

tv_txt: I 113th CONGRESS 2d Session H. R. 4244 IN THE HOUSE OF REPRESENTATIVES March 13, 2014 Mr. Peters of Michigan (for himself, Mr. Murphy of Florida , and Mr. Schrader ) introduced the following bill; which was referred to the Committee on Ways and Means 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 Health Insurance Affordability Act of 2014 . 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 based on number of employees Paragraph (1) of section 45R(c) of such Code is amended by striking 10 and inserting 20 . (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 $35,000 , (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 $35,000. . (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 period Section 45R(e)(2) of the Internal Revenue Code of 1986 is amended by striking 2-consecutive-taxable year period and inserting 3-consecutive-taxable year period . (e) Coverage providing essential health benefits through non-Exchange plan treated as qualified Section 45R(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (6) Coverage providing essential health benefits through non-Exchange plan treated as qualified Health insurance providing the essential health benefits specified in section 1302(b)(1) of the Patient Protection and Affordable Care Act ( 42 U.S.C. 18022(b)(1) ) through a plan not offered through an Exchange shall be treated as a qualified health plan offered through an Exchange. . (f) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013.