Health Coverage Tax Credit Extension Act of 2015

Bill: 114-s-1005
Sponsor: full_name: Sen. Wyden, Ron [D-OR]
Introduced: 2015-04-16
Policy area: Taxation
Subjects: Employee benefits and pensions

Government information and archives

Health care costs and insurance

Health care coverage and access

Income tax credits
Latest action: action_date: 2015-04-16
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2015-04-16
action_desc: Introduced in Senate
text: <p><strong>Health Coverage Tax Credit Extension Act of 2015</strong></p> <p>This bill extends the tax credit for health insurance costs of a taxpayer and qualifying family members through 2019. The tax credit for health insurance costs is a refundable tax credit equal to 72.5% of the cost of qualified health coverage paid by an eligible individual [defined as an individual who is receiving a trade adjustment allowance, is eligible for the alternative trade adjustment assistance program, or is over age 55 and receives pension benefits from the Pension Benefit Guaranty Corporation (PBGC)].</p> <p>The bill requires a taxpayer to make an election to have the tax credit apply for any eligible coverage month during a taxable year. An eligible coverage month is a month in which an eligible individual is covered by qualified health insurance, does not have other specified coverage, and is not imprisoned. </p> <p>The bill also directs the Departments of the Treasury, Health and Human Services, and Labor and the PBGC to conduct a public outreach, including on the Internet, to inform individuals eligible for the tax credit for health insurance costs on the extension of such credit and the availability of the election to claim such credit retroactively for coverage months beginning after December 31, 2013. </p>

tv_txt: II 114th CONGRESS 1st Session S. 1005 IN THE SENATE OF THE UNITED STATES April 16, 2015 Mr. Wyden 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 extend and modify the credit for health insurance costs of certain eligible individuals, and for other purposes.

1. Short title This Act may be cited as the Health Coverage Tax Credit Extension Act of 2015 . 2. Extension and modification of Health Coverage Tax Credit (a) Extension Subparagraph (B) of section 35(b)(1) of the Internal Revenue Code of 1986 is amended by striking before January 1, 2014 and inserting before January 1, 2020 . (b) Coordination with credit for coverage under a qualified health plan Subsection (g) of section 35 of the Internal Revenue Code of 1986 is amended— (1) by redesignating paragraph (11) as paragraph (13), and (2) by inserting after paragraph (10) the following new paragraphs: (11) Election (A) In general A taxpayer may elect to have this section apply for any eligible coverage month. (B) Timing and applicability of election Except as the Secretary may provide— (i) an election to have this section apply for any eligible coverage month in a taxable year shall be made not later than the due date (including extensions) for the return of tax for the taxable year, and (ii) any election for this section to apply for an eligible coverage month shall apply for all subsequent eligible coverage months in the taxable year and, once made, shall be irrevocable with respect to such months. (12) Coordination with premium tax credit (A) In general An eligible coverage month to which the election under paragraph (11) applies shall not be treated as a coverage month (as defined in section 36B(c)(2)) for purposes of section 36B with respect to the taxpayer. (B) Coordination with advance payments of premium tax credit In the case of a taxpayer who makes the election under paragraph (11) with respect to any eligible coverage month in a taxable year or on behalf of whom any advance payment is made under section 7527 with respect to any month in such taxable year— (i) the tax imposed by this chapter for the taxable year shall be increased by the excess, if any, of— (I) the sum of any advance payments made on behalf of the taxpayer under section 1412 of the Patient Protection and Affordable Care Act and section 7527 for months during such taxable year, over (II) the sum of the credits allowed under this section (determined without regard to paragraph (1)) and section 36B (determined without regard to subsection (f)(1) thereof) for such taxable year, and (ii) section 36B(f)(2) shall not apply with respect to such taxpayer for such taxable year, except that if such taxpayer received any advance payments under section 7527 for any month in such taxable year and is later allowed a credit under section 36B for such taxable year, then section 36B(f)(2) shall be applied by substituting the amount determined under clause (i) for the amount determined under section 36B(f)(2)(A). . (c) Extension of advance payment program (1) In general Subsection (a) of section 7527 of the Internal Revenue Code of 1986 is amended by striking August 1, 2003 and inserting the date that is 1 year after the date of the enactment of the Health Coverage Tax Credit Extension Act of 2015 . (2) Conforming amendment Paragraph (1) of section 7527(e) of such Code is amended by striking occurring and all that follows and inserting “occurring— (A) after the date that is 1 year after the date of the enactment of the Health Coverage Tax Credit Extension Act of 2015 , and (B) prior to the first month for which an advance payment is made on behalf of such individual under subsection (a). . (d) Individual insurance treated as qualified health insurance without regard to enrollment date (1) In general Subparagraph (J) of section 35(e)(1) of the Internal Revenue Code of 1986 is amended by striking insurance if the eligible individual and all that follows through For purposes of and inserting insurance. For purposes of . (2) Special rule Subparagraph (J) of section 35(e)(1) of such Code, as amended by paragraph (1), is amended by striking insurance. and inserting insurance (other than coverage enrolled in through an Exchange established under the Patient Protection and Affordable Care Act). . (e) Conforming amendment Subsection (m) of section 6501 of the Internal Revenue Code of 1986 is amended by inserting , 35(g)(11) after 30D(e)(4) . (f) Effective date (1) In general Except as provided in paragraph (2), the amendments made by this section shall apply to coverage months in taxable years beginning after December 31, 2013. (2) Plans available on individual market for use of tax credit The amendment made by subsection (d)(2) shall apply to coverage months in taxable years beginning after December 31, 2015. (3) Transition rule Notwithstanding section 35(g)(11)(B)(i) of the Internal Revenue Code of 1986 (as added by this Act), an election to apply section 35 of such Code to an eligible coverage month (as defined in section 35(b) of such Code) (and not to claim the credit under section 36B of such Code with respect to such month) in a taxable year beginning after December 31, 2013, and before the date of the enactment of this Act— (A) may be made at any time on or after such date of enactment and before the expiration of the 3-year period of limitation prescribed in section 6511(a) with respect to such taxable year; and (B) may be made on an amended return. 3. Agency outreach As soon as possible after the date of the enactment of this Act, the Secretaries of the Treasury, Health and Human Services, and Labor (or such Secretaries' delegates) and the Director of the Pension Benefit Guaranty Corporation (or the Director's delegate) shall carry out programs of public outreach, including on the Internet, to inform potential eligible individuals (as defined in section 35(c)(1) of the Internal Revenue Code of 1986) of the extension of the credit under section 35 of the Internal Revenue Code of 1986 and the availability of the election to claim such credit retroactively for coverage months beginning after December 31, 2013.