In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``IRS Abuse Protection Act of 2013''.

SEC. 2. NOTICE RELATING TO ACCESSING ACCOUNT, RETURN, OR RETURN 
              INFORMATION.

    (a) In General.--Section 6103 of the Internal Revenue Code of 1986 
is amended by redesignating subsection (q) as subsection (r) and by 
inserting after subsection (p) the following new subsection:
    ``(q) Notice Relating to Accessing Account, Return, or Return 
Information.--
            ``(1) In general.--The Secretary shall provide notice, in 
        writing, to a taxpayer any time the taxpayer's account, return, 
        or return information is accessed by the Secretary.
            ``(2) Special rules relating to investigations.--
                    ``(A) Investigations by the secretary.--In the case 
                of any civil or criminal investigation, the notice 
                required by paragraph (1) shall be provided not later 
                than 1 year after such investigation is closed.
                    ``(B) Investigations by states.--In the case of any 
                investigation by a State using information provided 
                pursuant to subsection (d), the notice required by 
                paragraph (1) shall be provided after the Secretary 
                receives notice with respect to such investigation 
                pursuant to subsection (d)(7). Notice provided pursuant 
                to this subparagraph shall include all information 
                provided to the Secretary pursuant to subsection 
                (d)(7).
            ``(3) Notice.--The notice required by paragraph (1) shall 
        include the following:
                    ``(A) Who accessed such account, return, or return 
                information.
                    ``(B) The purpose for which such account, return, 
                or return information was accessed.
                    ``(C) How such account, return, or return 
                information was accessed.
            ``(4) Copy of information accessed.--In addition to the 
        notice required to be provided by paragraph (1), the Secretary 
        shall provide with such notice a copy of all information 
        accessed.
            ``(5) Subsequent use of accessed information.--If a report 
        or other use of an account, return, or return information for 
        which notice is provided under paragraph (1) is made, the 
        Secretary shall provide such report or a report of such use to 
        the taxpayer.
            ``(6) Taxpayer rights.--The Secretary shall include with 
        each notice provided under this subsection a notice of taxpayer 
        rights pursuant to the Taxpayer Bill of Rights 2.''.
    (b) Availability of Inspector General for Tax Administration 
Reports.--Section 7803(d) of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new paragraph:
            ``(4) Availability of inspector general for tax 
        administration reports.--If the Inspector General for Tax 
        Administration investigates any unauthorized use a taxpayer's 
        account, return, or return information, the Inspector General 
        for Tax Administration shall notify the taxpayer of such 
        investigation and provide full access to any report by the 
        Inspector General for Tax Administration with respect to the 
        investigation.''.
    (c) State Access to Taxpayer Information.--Section 6103(d) of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(7) Submission of notification to secretary.--The 
        Secretary may not provide any access or disclosure under the 
        preceding paragraphs of this subsection until the entity to be 
        provided access or disclosure agrees to notify the Secretary 
        within 1 year after an investigation is closed the identity of 
        who accessed such information, what was accessed, why it was 
        accessed and how it was accessed.''.
    (d) Reports of Unauthorized Access to Congress.--Section 6103(f) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new paragraph:
            ``(6) Unauthorized access reports, etc.--Notwithstanding 
        any other provision of this section, the Secretary with respect 
        to Internal Revenue Service employees, and the Inspector 
        General for Tax Administration with respect to any audit, shall 
        submit to each member of the committees referred to in 
        paragraph (1) any report of the Secretary or the Inspector 
        General for Tax Administration, as the case may be, regarding 
        unauthorized access, violation of rights, laws, or any rules or 
        regulations of the Internal Revenue Service.''.
    (e) Effective Dates.--
            (1) Subsection (a).--The amendment made by subsection (a) 
        shall apply with respect to information accessed after the date 
        of the enactment of this Act.
            (2) Subsection (b).--The amendment made by subsection (b) 
        shall apply with respect to investigations closed after the 
        date of the enactment of this Act.
            (3) Subsection (c).--The amendment made by subsection (c) 
        shall apply to access and disclosures after the date of the 
        enactment of this Act.
            (4) Subsection (d).--The amendment made by subsection (d) 
        shall apply with respect to information accessed and reports 
        prepared after the date of the enactment of this Act.
[A]: IRS Abuse Protection Act of 2013 - Amends the Internal Revenue Code to require the Secretary of the Treasury to provide written notice to a taxpayer any time such taxpayer's account, tax return, or return information is accessed by the Department of the Treasury. Requires such notice to include: (1) who accessed such information, (2) the purpose for which such information was accessed, (3) how much information was accessed, (4) a copy of all information accessed, and (5) a notice of taxpayer rights. Prohibits the Secretary from providing access to or disclosing taxpayer information to a state entity conducting an investigation until such entity agrees to notify the Secretary, within one year after the investigation is closed, of the identity of who accessed such information, what was accessed, and why and how such information was accessed.  Requires the Inspector General for Tax Administration of the Department of the Treasury to notify a taxpayer of an investigation by the Inspector General of any unauthorized use of a taxpayer's account, tax return, or tax information and provide full access to any report with respect to such investigation. 


[Q]: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.-- This Act may be cited as the ``Tribal Government 
Homeland Security Coordination and Integration Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Office of tribal government homeland security.
Sec. 5. Report to congress.
Sec. 6. Authorization of appropriations.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) Since the terrorist attacks of September 11, 2001, and 
        the subsequent introduction of weapons grade anthrax into the 
        United States Postal System and Congressional office buildings 
        in Washington, D.C., the President and the Congress have worked 
        closely to respond to the need to rebuild and strengthen the 
        nation's public health, national security, and emergency 
        response systems.
            (2) Based on Article I, section 8 of the United States 
        Constitution, treaties, Federal statutes, and court decisions, 
        the United States has a unique historical and legal 
        relationship with American Indian and Alaska Native people, 
        which serves as the basis for the Federal Government's trust 
        responsibility and obligations. There are currently 558 
        federally-recognized Indian tribes in the United States, with 
        some 40 percent of Indian tribes located in the State of 
        Alaska. Indian tribes have principle responsibility for lands 
        and people within their jurisdiction.
            (3) Despite the government-to-government relationship 
        between Indian tribes and the United States, the United States 
        has failed to include and consult with Indian tribes with 
        regard to homeland security prevention, protection, and 
        response activities planning. Moreover, there are no specific 
        provisions for the Bureau of Indian Affairs or the Indian 
        Health Service to participate in homeland security programs and 
        funding.
            (4) Throughout many areas of the United States, facilities 
        operated, and services, activities and government functions 
        carried out, by Indian tribes, the Bureau of Indian Affairs and 
        the Indian Health Service are the only sources available to 
        provide emergency health services, disaster response, and law 
        enforcement to the tribal and non-tribal community, thus 
        serving the role as ``first responders'' in the event of a 
        terrorist attack.
            (5) To provide for the public health and safety on tribal 
        lands and in the surrounding communities, it is imperative to 
        establish tribal participation in homeland security 
        initiatives. Indian tribes must be included in the national 
        strategy for homeland security and receive an appropriate share 
        of related funding.
            (6) The treatment of Indian tribes as State governments, as 
        appropriate, for developing funding methodologies, planning, 
        consultation, coordination, and for eligibility for grant 
        monies will ensure Indian tribes are adequately prepared to 
        respond to Homeland Security threats.
            (7) Indian tribes shall be treated as State, as 
        appropriate, for purposes of planning, consultation, 
        coordination, eligibility for grant monies and other purposes 
        to improve the United States capacity to prepare, prevent and 
        respond to terrorist activities.
    (b) Purposes.--The purposes of this Act are as follows:
            (1) To establish within the Department of Homeland Security 
        an office known as the Office of Tribal Government Homeland 
        Security.
            (2) To authorize the Secretary of Homeland Security to 
        appoint, in consultation with Indian tribes, a Director of 
        Tribal Government Homeland Security.
            (3) To provide for more effective management of, and 
        accountability for the proper discharge of, the Secretary's 
        trust responsibility to Indian tribes and individual American 
        Indians and Alaska Natives by establishing in the Department of 
        Homeland Security an Office of Tribal Government Homeland 
        Security.
            (4) To integrate and coordinate the efforts of the 
        Department of Homeland Security and Indian tribes to prepare 
        for, prevent, protect against, respond to, and recover from 
        terrorist attacks.
            (5) To provide strategic integration of the Homeland 
        Security activities of Indian tribes that will complement the 
        operational consolidation of the various directorates within 
        the Department.
            (6) To supplement the capacity of the Indian Health Service 
        and the Bureau of Indian Affairs to respond to the homeland 
        security needs of American Indians and Alaska Natives, without 
        jeopardizing the nonsecurity missions of the Indian Health 
        Service and the Bureau of Indian Affairs.
            (7) To serve as an information clearinghouse and to enhance 
        the integration and coordination of Indian tribes and in the 
        activities of the Department of Homeland Security.
            (8) To establish an organizational framework within the 
        Department of Homeland Security through which the Federal 
        Government, Indian tribes, and State and local governments can 
        work effectively and collaboratively on public health and 
        safety, terrorism detection, prevention, response, and 
        protection of critical infrastructure.

SEC. 3. DEFINITIONS.

     In this Act:
            (1) Director.--The term ``Director'' means the Director of 
        the Office of Tribal Government Homeland Security.
            (2) Indian tribe.--The term ``Indian tribe'' has the 
        meaning given that term in section 4(e) of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b(e)).
            (3) Office.--The term ``Office'' means the Office of Tribal 
        Government Homeland Security established in section 4.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Homeland Security.

SEC. 4. OFFICE OF TRIBAL GOVERNMENT HOMELAND SECURITY.

    (a) In General.--
            (1) Establishment.--There is hereby established within the 
        Department of Homeland Security an office to be known as the 
        ``Office of Tribal Government Homeland Security''.
            (2) Director.--The Office shall be headed by a Director, 
        appointed by the Secretary in consultation with Indian tribes, 
        whose title shall be the Director of Tribal Government Homeland 
        Security. The Director shall be equal in pay and authority of 
        an Assistant Secretary.
    (b) Duties of Secretary; Director.--
            (1) Duties of the secretary.--The Secretary shall--
                    (A) ensure the coordination of Federal programs 
                that provide assistance (including financial and 
                technical assistance) to eligible Indian tribes and 
                provide those governments with treatment as State 
                governments, as appropriate, for planning, 
                consultation, and coordination and for eligibility for 
                Federal grant monies and funds to improve capacity and 
                help prepare, prevent, and respond to terrorist 
                activities, and for other related purposes in and near 
                tribal communities;
                    (B) ensure Indian tribes are included in the 
                coordination activities of the Homeland Security 
                Department's Border and Transportation functions in the 
                same manner as State and local law enforcement 
                entities;
                    (C) ensure Indian tribes with jurisdiction over 
                lands adjacent to the Canadian and Mexican borders are 
                adequately prepared to help protect United States 
                borders, territorial waters, waterways, and other 
                transportation systems;
                    (D) ensure the broad spectrum of infrastructure 
                throughout Indian Country, including nuclear and 
                electrical power plants, water and sanitation 
                facilities, agricultural, food processing, oil, timber, 
                and other natural resources is adequately protected 
                against terrorist threats;
                    (E) ensure that Indian tribes are properly equipped 
                to prepare for, prevent, and respond to terrorist 
                activities in the same manner as State and local 
                governments;
                    (F) provide Indian tribes the necessary equipment 
                for detection, protection, and decontamination in 
                emergencies involving weapons of mass destruction;
                    (G) provide Indian tribes with emergency 
                preparedness training and exercise programs and further 
                assistance for any emergency, including natural 
                disasters or disease;
                    (H) include Indian tribes in all facets of 
                research, development, resource assessment, and risk 
                analysis in the same manner as State and local 
                governments; and
                    (I) include Indian tribes, as appropriate, in the 
                coordination of the Homeland Security Department's 
                Immigration and Nationality functions in the same 
                manner as State and local law enforcement entities.
            (2) Duties of the director.--The Director shall--
                    (A) coordinate homeland security activities among 
                Indian tribes and related Federal agencies, including 
                integration and coordination of the efforts of the 
                Department of Homeland Security and Indian tribes to 
                prepare for, prevent, protect against, respond to, and 
                recover from terrorist attacks;
                    (B) provide strategic integration to complement the 
                operational consolidation of the various directorates 
                within the Department of Homeland Security, with 
                respect to Indian tribes;
                    (C) ensure that Indian tribes are included in the 
                gathering and analysis of terrorist threats and other 
                information in the same manner as Federal, State, and 
                local law enforcement entities;
                    (D) serve as the Secretary's key point of contact 
                for Indian tribes in need of assistance and information 
                homeland security grants for purposes of planning, 
                consultation, coordination, eligibility for grant 
                monies and other purposes to improve the United States 
                capacity to prepare, prevent and respond to terrorist 
                activities and to work with Indian tribes and executive 
                agencies in promoting homeland security;
                    (E) serve as the coordinating center intended to 
                facilitate communication between and integration with 
                Indian tribes and other Federal departments that have 
                homeland security responsibilities, including but not 
                limited to health surveillance, emergency preparation 
                and response, border security, critical infrastructure 
                protection, technology, and communication;
                    (F) establish a network through which the Federal 
                Government, Indian tribes, and State and local 
                governments work collaboratively on public health and 
                safety, terrorism detection, prevention, response, and 
                protection of critical infrastructure targets; and
                    (G) establish a mechanism for the distribution of 
                warnings and information to tribal communities.
    (c) Treatment of Indian Tribes as States.--
            (1) In general.--The Secretary shall--
                    (A) treat Indian tribes as States, as appropriate, 
                for the purpose of homeland security consultation, 
                planning, coordination, bioterrorism preparedness, 
                prevention, and response, emergency preparedness and 
                response, border and transportation security, and for 
                other purposes related to protecting the homeland;
                    (B) include Indian tribes in funding methodologies 
                for purposes of allocating any financial resources; and
                    (C) support and facilitate the capacity necessary 
                for the Indian Health Service and Bureau of Indian 
                Affairs to respond to the homeland security needs of 
                American Indians and Alaska Natives, without 
                jeopardizing their non-security missions.
            (2) Discretionary authority.--The Secretary may delegate to 
        such Indian tribes primary responsibility for homeland security 
        activities within its respective jurisdiction.
    (d) Information Sharing.--The Secretary shall provide assistance to 
enhance information technology capabilities of Indian tribes and 
ensure--
            (1) the active participation of Indian tribes in the 
        coordination with Federal, State, and local governments and the 
        private sector as related to Homeland Security activities; and
            (2) provide Indian tribes access to the same type of 
        information being exchanged between Federal, State, and local 
        authorities for the purpose of providing government personnel, 
        agencies, and authorities, with appropriate intelligence 
        information, including warnings, regarding threats posed by 
        terrorism in a timely and secure manner.
    (e) Federal Grants.--
            (1) General eligibility.--Indian tribes shall be eligible 
        to apply for, receive, direct, and supervise any homeland 
        security-related Federal grant programs.
            (2) Authority to award grants.--The Secretary may award 
        grants to Indian tribes for the following purposes:
                    (A) Planning, consultation, and coordination to 
                improve infrastructure, to prevent terrorist 
                activities.
                    (B) Training and education of employees responsible 
                for public health, safety and emergency response 
                activities.
                    (C) Addressing communication gaps and 
                infrastructure needs related to homeland security.
                    (D) Increasing the capacity of Indian tribes to 
                help prepare, prevent, and respond to terrorist 
                activities and other public health and safety 
                emergencies.
                    (E) Development of a comprehensive plan to help 
                prepare, prevent, and respond to terrorist activities 
                and other public health and safety emergencies.
                    (F) Implementation of plans to help prepare, 
                prevent, and respond to terrorist activities and other 
                public health and safety emergencies.
                    (G) The preparation of reports assessing the 
                emergency preparedness of Indian tribes, including an 
                assessment of Indian tribes' coordination with the 
                Department.
                    (H) Such other purposes related to the purposes of 
                this Act the Secretary considers appropriate.
    (f) Technical Assistance.--The Secretary shall--
            (1) directly or by contract, provide Indian tribes with 
        technical assistance in developing, implementing and managing 
        emergency response plans.
            (2) Ensure that legal, financial, and other expertise of 
        the Department of Homeland Security is made fully available in 
        an advisory capacity to Indian tribes to assist in the 
        development, implementation, and management of emergency 
        response plans.
            (3) Provide Department of Homeland Security programs 
        designed to provide legal, accounting, financial, or technical 
        assistance to eligible Indian tribes.
            (4) Facilitate cooperation with the heads of appropriate 
        Federal agencies working on Homeland Security initiatives.
            (5) Any other activity that the Secretary, in consultation 
        with the Director, considers appropriate to carry out this 
        section.
    (g) Assessment.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall submit an assessment report 
detailing the baseline readiness of Indian tribes to the Committee on 
Indian Affairs of the Senate and the Committee on Resources of the 
House of Representatives. In addition to an assessment of baseline 
readiness, the report shall contain any legislative recommendations 
necessary to improve coordination and integration of Indian tribes in 
the National Homeland Security Strategy.
    (h) Reporting.--The Secretary shall determine the effectiveness of 
the Office through the preparation of reports assessing the emergency 
preparedness of Indian tribes, including an assessment of Indian 
tribes' coordination with the Department of Homeland Security.
    (i) Prohibition.--The Secretary may not provide assistance under 
this section for any activity related to the operation of a gaming 
activity on Indian lands pursuant to the Indian Gaming Regulatory Act 
(25 U.S.C. 2701 et seq.).

SEC. 5. REPORT TO CONGRESS.

    (a) In General.--Not later than 1 year after the date of the 
enactment of this Act, and annually thereafter, the Secretary, in 
consultation with the Director, shall prepare and submit to the 
Committee on Indian Affairs of the Senate and the Committee on 
Resources of the House of Representatives a report on the operation of 
the Office.
    (b) Contents of Report.--Each report prepared under subsection (a) 
shall include--
            (1) for the period covered by the report, a summary of the 
        activities conducted by the Secretary, in carrying out 
        subsections (b) through (h) of section 4; and
            (2) any recommendations for legislation that the Secretary, 
        in consultation with the Director, determines to be necessary 
        to carry out such sections.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

     There are authorized to be appropriated such sums are necessary to 
carry out this Act, to remain available until expended.
[A]: Tribal Government Homeland Security Coordination and Integration Act - Establishes the Office of Tribal Government Homeland Security (Office) within the Department of Homeland Security. Requires the Secretary of Homeland Security to appoint a Director to head the Office.

Prescribes the Secretary's and the Director's duties of coordination, infrastructure and equipment readiness, training, and inclusion of Indian tribes in homeland security preparedness. 
 
 Requires the Secretary to treat Indian tribes as states, as appropriate for the purpose of homeland security. Authorizes the Secretary to delegate to Indian tribes primary responsibility for homeland security activities within their respective jurisdictions. Requires the Secretary to integrate the roles of the Bureau of Indian Affairs and Indian Health Services with regard to homeland security. 
 
 Requires the Secretary to provide assistance to enhance information technology capabilities of tribes and ensure the participation of Indian tribes in the coordination with federal, state, and local governments and the private sector as related to Homeland Security activities. 
 
 Declares Indian tribes to be eligible to apply for, receive, direct, and supervise any homeland security-related federal grant program. 
 
 Authorizes the Secretary to award grants to Indian tribes for specified homeland security purposes. 
 
 Requires the Secretary to provide Indian tribes with: (1) technical assistance in developing, implementing, and managing emergency response plans; (2) Department of Homeland Security expertise and programs; (3) the cooperation of the heads of appropriate Federal agencies; and (4) any other activity the Secretary considers appropriate to provide homeland security technical assistance to Indian tribes.


[Q]: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Small Business Health Care Tax 
Credit Act''.

SEC. 2. CREDIT FOR EMPLOYEE HEALTH INSURANCE EXPENSES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business-related 
credits) is amended by adding at the end the following:

``SEC. 45O. EMPLOYEE HEALTH INSURANCE EXPENSES.

    ``(a) General Rule.--For purposes of section 38, in the case of a 
qualified small employer, the employee health insurance expenses credit 
determined under this section is an amount equal to the applicable 
percentage of the amount paid by the taxpayer during the taxable year 
for qualified employee health insurance expenses.
    ``(b) Applicable Percentage.--For purposes of subsection (a), the 
applicable percentage is--
            ``(1) 50 percent in the case of an employer with less than 
        10 qualified employees,
            ``(2) 25 percent in the case of an employer with more than 
        9 but less than 25 qualified employees, and
            ``(3) 20 percent in the case of an employer with more than 
        24 but less than 50 qualified employees.
    ``(c) Per Employee Dollar Limitation.--The amount of qualified 
employee health insurance expenses taken into account under subsection 
(a) with respect to any qualified employee for any taxable year shall 
not exceed--
            ``(1) $4,000 for self-only coverage, and
            ``(2) $10,000 for family coverage.
    ``(d) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Qualified small employer.--
                    ``(A) In general.--The term `qualified small 
                employer' means any small employer which--
                            ``(i) provides eligibility for health 
                        insurance coverage (after any waiting period 
                        (as defined in section 9801(b)(4))) to all 
                        qualified employees of the employer, and
                            ``(ii) pays at least 50 percent of the cost 
                        of such coverage for each qualified employee.
                    ``(B) Small employer.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `small employer' means, 
                        with respect to any taxable year, any employer 
                        if--
                                    ``(I) the average gross receipts of 
                                such employer for the preceding 3 
                                taxable years does not exceed 
                                $5,000,000, and
                                    ``(II) such employer employed an 
                                average of more than 1 but less than 50 
                                qualified employees on business days 
                                during the preceding taxable year.
                            ``(ii) Aggregate gross assets.--For 
                        purposes of clause (i)(I), the term `aggregate 
                        gross assets' shall have meaning given such 
                        term by section 1202(d)(2).
                            ``(iii) Employers not in existence in 
                        preceding year.--For purposes of clause 
                        (i)(II)--
                                    ``(I) a preceding taxable year may 
                                be taken into account only if the 
                                employer was in existence throughout 
                                such year, and
                                    ``(II) in the case of an employer 
                                which was not in existence throughout 
                                the preceding taxable year, the 
                                determination of whether such employer 
                                is a qualified small employer shall be 
                                based on the average number of 
                                employees that it is reasonably 
                                expected such employer will employ on 
                                business days in the current taxable 
                                year.
                            ``(iv) Aggregation rules.--All persons 
                        treated as a single employer under subsection 
                        (a) or (b) of section 52 or subsection (m) or 
                        (o) of section 414 shall be treated as one 
                        person for purposes of this subparagraph.
                            ``(v) Predecessors.--The Secretary may 
                        prescribe regulations which provide for 
                        references in this subparagraph to an employer 
                        to be treated as including references to 
                        predecessors of such employer.
            ``(2) Qualified employee health insurance expenses.--
                    ``(A) In general.--The term `qualified employee 
                health insurance expenses' means any amount paid by an 
                employer for health insurance coverage to the extent 
                such amount is attributable to coverage provided to any 
                employee while such employee is a qualified employee.
                    ``(B) Exception for amounts paid under salary 
                reduction arrangements.--No amount paid or incurred for 
                health insurance coverage pursuant to a salary 
                reduction arrangement shall be taken into account under 
                subparagraph (A).
                    ``(C) Health insurance coverage.--The term `health 
                insurance coverage' has the meaning given such term by 
                section 9832(b)(1).
            ``(3) Qualified employee.--
                    ``(A) In general.--The term `qualified employee' 
                means an employee of an employer who, with respect to 
                any period, is not provided health insurance coverage 
                under--
                            ``(i) a health plan of the employee's 
                        spouse,
                            ``(ii) title XVIII, XIX, or XXI of the 
                        Social Security Act,
                            ``(iii) chapter 17 of title 38, United 
                        States Code,
                            ``(iv) chapter 55 of title 10, United 
                        States Code,
                            ``(v) chapter 89 of title 5, United States 
                        Code, or
                            ``(vi) any other provision of law.
                    ``(B) Employee.--The term `employee'--
                            ``(i) means any individual, with respect to 
                        any calendar year, who is reasonably expected 
                        to receive not more than $50,000 of 
                        compensation from the employer during such 
                        year,
                            ``(ii) does not include an employee within 
                        the meaning of section 401(c)(1), and
                            ``(iii) includes a leased employee within 
                        the meaning of section 414(n).
                    ``(C) Compensation.--The term `compensation' means 
                amounts described in section 6051(a)(3).
                    ``(D) Inflation adjustment.--
                            ``(i) In general.--In the case of a taxable 
                        year beginning after 2007, the $50,000 amount 
                        in subparagraph (B)(i) shall be increased by an 
                        amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, determined by 
                                substituting `calendar year 2006' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(ii) Rounding.--If any amount as adjusted 
                        under clause (i) is not a multiple of $1,000, 
                        such amount shall be rounded to the next lowest 
                        multiple of $1,000.
            ``(4) No qualified employees excluded.--Subsection (a) 
        shall not apply to an employer for any period unless at all 
        times during such period health insurance coverage is available 
        to all qualified employees of such employer under similar 
        terms.
    ``(e) Portion of Credit Made Refundable.--
            ``(1) In general.--The aggregate credits allowed to a 
        taxpayer under subpart C shall be increased by the lesser of--
                    ``(A) the credit which would be allowed under 
                subsection (a) without regard to this subsection and 
                the limitation under section 38(c), or
                    ``(B) the amount by which the aggregate amount of 
                credits allowed by this subpart (determined without 
                regard to this subsection) would increase if the 
                limitation imposed by section 38(c) for any taxable 
                year were increased by the amount of employer payroll 
                taxes imposed on the taxpayer during the calendar year 
                in which the taxable year begins.
        The amount of the credit allowed under this subsection shall 
        not be treated as a credit allowed under this subpart and shall 
        reduce the amount of the credit otherwise allowable under 
        subsection (a) without regard to section 38(c).
            ``(2) Employer payroll taxes.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `employer payroll 
                taxes' means the taxes imposed by--
                            ``(i) section 3111(b), and
                            ``(ii) sections 3211(a) and 3221(a) 
                        (determined at a rate equal to the rate under 
                        section 3111(b)).
                    ``(B) Special rule.--A rule similar to the rule of 
                section 24(d)(2)(C) shall apply for purposes of 
                subparagraph (A).
    ``(f) Denial of Double Benefit.--No deduction or credit under any 
other provision of this chapter shall be allowed with respect to 
qualified employee health insurance expenses taken into account under 
subsection (a).''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
the Internal Revenue Code of 1986 (relating to current year business 
credit) is amended by striking ``plus'' at the end of paragraph (30), 
by striking the period at the end of paragraph (31) and inserting ``, 
plus'', and by adding at the end the following:
            ``(32) the employee health insurance expenses credit 
        determined under section 45O.''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following:

``Sec. 45O. Employee health insurance expenses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2006.
[A]:
Small Business Health Care Tax Credit Act - Amends the Internal Revenue Code to allow certain small business employers a partially refundable business tax credit for the health insurance costs of employees who are not otherwise covered by a spouse's insurance or by a federal health insurance program.