Health Care for Small Business Act

Bill: 115-s-1254
Sponsor: full_name: Sen. Stabenow, Debbie [D-MI]
Introduced: 2017-05-25
Policy area: Taxation
Subjects: Employee benefits and pensions

Health care costs and insurance

Income tax credits

Inflation and prices

Small business

Wages and earnings
Latest action: action_date: 2017-05-25
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2017-05-25
action_desc: Introduced in Senate
text: <p><b>Health Care for Small Business Act </b></p> <p>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. </p>

tv_txt: II 115th CONGRESS 1st Session S. 1254 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.

1. Short title This Act may be cited as the Health Care for Small Business Act . 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.