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 ``Children's Health Equity Act of 
2003''.

SEC. 2. AUTHORITY FOR QUALIFYING STATES TO USE SCHIP FUNDS FOR MEDICAID 
              EXPENDITURES.

    Section 2105 of the Social Security Act (42 U.S.C. 1397ee) is 
amended by adding at the end the following:
    ``(g) Authority for Qualifying States To Use Certain Funds for 
Medicaid Expenditures.--
            ``(1) State option.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, with respect to fiscal years in which 
                allotments for a fiscal year under section 2104 
                (beginning with fiscal year 1998) are available under 
                subsections (e) and (g) of that section, a qualifying 
                State (as defined in paragraph (2)) may elect to use 
                such allotments (instead of for expenditures under this 
                title) for payments for such fiscal year under title 
                XIX in accordance with subparagraph (B).
                    ``(B) Payments to states.--
                            ``(i) In general.--In the case of a 
                        qualifying State that has elected the option 
                        described in subparagraph (A), subject to the 
                        total amount of funds described with respect to 
                        the State in subparagraph (A), the Secretary 
                        shall pay the State an amount each quarter 
                        equal to the additional amount that would have 
                        been paid to the State under title XIX for 
                        expenditures of the State for the fiscal year 
                        described in clause (ii) if the enhanced FMAP 
                        (as determined under subsection (b)) had been 
                        substituted for the Federal medical assistance 
                        percentage (as defined in section 1905(b)) of 
                        such expenditures.
                            ``(ii) Expenditures described.--For 
                        purposes of clause (i), the expenditures 
                        described in this clause are expenditures for 
                        such fiscal years for providing medical 
                        assistance under title XIX to individuals who 
                        have not attained age 19 and whose family 
                        income exceeds 133 percent of the poverty line.
                            ``(iii) No impact on determination of 
                        budget neutrality for waivers.--In the case of 
                        a qualifying State that uses amounts paid under 
                        this subsection for expenditures described in 
                        clause (ii) that are incurred under a waiver 
                        approved for the State, any budget neutrality 
                        determinations with respect to such waiver 
                        shall be determined without regard to such 
                        amounts paid.
            ``(2) Qualifying state.--In this subsection, the term 
        `qualifying State' means a State that--
                    ``(A) as of April 15, 1997, has an income 
                eligibility standard with respect to any 1 or more 
                categories of children (other than infants) who are 
                eligible for medical assistance under section 
                1902(a)(10)(A) or under a waiver under section 1115 
                implemented on January 1, 1994, that is up to 185 
                percent of the poverty line or above; and
                    ``(B) satisfies the requirements described in 
                paragraph (3).
            ``(3) Requirements.--The requirements described in this 
        paragraph are the following:
                    ``(A) SCHIP income eligibility.--The State has a 
                State child health plan that (whether implemented under 
                title XIX or this title)--
                            ``(i) as of January 1, 2001, has an income 
                        eligibility standard that is at least 200 
                        percent of the poverty line or has an income 
                        eligibility standard that exceeds 200 percent 
                        of the poverty line under a waiver under 
                        section 1115 that is based on a child's lack of 
                        health insurance;
                            ``(ii) subject to subparagraph (B), does 
                        not limit the acceptance of applications for 
                        children; and
                            ``(iii) provides benefits to all children 
                        in the State who apply for and meet eligibility 
                        standards on a statewide basis.
                    ``(B) No waiting list imposed.--With respect to 
                children whose family income is at or below 200 percent 
                of the poverty line, the State does not impose any 
                numerical limitation, waiting list, or similar 
                limitation on the eligibility of such children for 
                child health assistance under such State plan.
                    ``(C) Additional requirements.--The State has 
                implemented at least 3 of the following policies and 
                procedures (relating to coverage of children under 
                title XIX and this title):
                            ``(i) Uniform, simplified application 
                        form.--With respect to children who are 
                        eligible for medical assistance under section 
                        1902(a)(10)(A), the State uses the same 
                        uniform, simplified application form 
                        (including, if applicable, permitting 
                        application other than in person) for purposes 
                        of establishing eligibility for benefits under 
                        title XIX and this title.
                            ``(ii) Elimination of asset test.--The 
                        State does not apply any asset test for 
                        eligibility under section 1902(l) or this title 
                        with respect to children.
                            ``(iii) Adoption of 12-month continuous 
                        enrollment.--The State provides that 
                        eligibility shall not be regularly redetermined 
                        more often than once every year under this 
                        title or for children described in section 
                        1902(a)(10)(A).
                            ``(iv) Same verification and 
                        redetermination policies; automatic 
                        reassessment of eligibility.--With respect to 
                        children who are eligible for medical 
                        assistance under section 1902(a)(10)(A), the 
                        State provides for initial eligibility 
                        determinations and redeterminations of 
                        eligibility using the same verification 
                        policies (including with respect to face-to-
                        face interviews), forms, and frequency as the 
                        State uses for such purposes under this title, 
                        and, as part of such redeterminations, provides 
                        for the automatic reassessment of the 
                        eligibility of such children for assistance 
                        under title XIX and this title.
                            ``(v) Outstationing enrollment staff.--The 
                        State provides for the receipt and initial 
                        processing of applications for benefits under 
                        this title and for children under title XIX at 
                        facilities defined as disproportionate share 
                        hospitals under section 1923(a)(1)(A) and 
                        Federally-qualified health centers described in 
                        section 1905(l)(2)(B) consistent with section 
                        1902(a)(55).''.

A: Children's Health Equity Act of 2003 - Amends title XXI (State Children's Health Insurance Program) (SCHIP) of the Social Security Act (SSA) to grant authority for qualifying States to use SCHIP funds for Medicaid (SSA title XIX) expenditures.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Adults Achieving the American Dream 
Act of 2007''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) According to the National Assessment of Adult Literacy, 
        93 million adults in the United States have limited reading, 
        writing, and mathematics skills, and 14 percent of adults in 
        the United States have below basic proficiency in prose 
        literacy.
            (2) According to the United States Census, nearly 16 
        percent of adults over the age of 25 have not attained a high 
        school diploma or its equivalent.
            (3) According to the United States Census, over 23 million 
        individuals speak do not speak English well.
            (4) An estimated 8 million aliens admitted for lawful 
        permanent residency are eligible to apply for United States 
        citizenship.
            (5) Recent reports indicate that a majority of Adult 
        English as a Second Language programs have waiting lists, and 
        some such programs have dropped waiting lists because of the 
        extreme demand for English as a second language services.
            (6) Only three percent of the 93 million adults who could 
        benefit from adult education services, English literacy, and 
        civics education programs actually participate in such services 
        and programs.
            (7) There is a growing and urgent need for additional adult 
        education, English literacy, and civics education programs for 
        adults in the United States.

SEC. 3. AMENDMENTS TO THE ADULT EDUCATION AND FAMILY LITERACY ACT.

    (a) Integrated English Literacy and Civics Education Program.--
Section 203 of the Adult Education and Family Literacy Act (20 U.S.C. 
9202) is amended by adding at the end the following new paragraph:
            ``(19) Integrated english literacy and civics education 
        programs.--The term `integrated English literacy and civics 
        education programs' means programs of instruction designed to 
        help an individual of limited English proficiency achieve 
        competence in English through contextualized instruction on the 
        rights and responsibilities of citizenship, naturalization 
        procedures, civic participation, and United States history and 
        government to help such an individual acquire the skills and 
        knowledge to become an active and informed parent, worker, and 
        community member.''.
    (b) Authorization of Appropriations.--Section 205 of such Act (20 
U.S.C. 9204) is amended by inserting before the period at the end the 
following: ``, $650,000,000 for fiscal year 2008, $750,000,000 for 
fiscal year 2009, $850,000,000 for fiscal year 2010, $950,000,000 for 
fiscal year 2011, $1,100,000,000 for fiscal year 2012, and 
$1,200,000,000 for fiscal year 2013''.
    (c) Reservation of Funds.--Section 211(a) of such Act (20 U.S.C. 
9211(a)) is amended--
            (1) in paragraph (1), by striking ``$8,000,000'' and 
        inserting ``$15,000,000'';
            (2) in paragraph (2)--
                    (A) by striking ``1.5 percent'' and inserting 
                ``1.25 percent'';
                    (B) by striking ``$8,000,000'' and inserting 
                ``$12,000,000''; and
                    (C) by striking ``and'' at the end;
            (3) in paragraph (3), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following new paragraph:
            ``(4) shall reserve 12 percent of the amount that remains 
        after reserving and making available funds under paragraphs 
        (1), (2), and (3) to carry out section 244.''.
    (d) National Institute for Literacy.--Section 242(c)(1) of such Act 
(20 U.S.C. 9252(c)(1)) is amended--
            (1) in subparagraph (A)--
                    (A) by redesignating clauses (ii), (iii), and (iv) 
                as clauses (iii), (iv), and (v), respectively; and
                    (B) by inserting after clause (i) the following new 
                clause:
                            ``(ii) effective practices in the provision 
                        of integrated English literacy and civics 
                        education programs;'';
            (2) by redesignating subparagraphs (G), (H), and (I) as 
        subparagraphs (H), (I), and (J), respectively; and
            (3) by inserting after subparagraph (F) the following new 
        subparagraph:
                    ``(G) to coordinate and share information with 
                national organizations and associations that are 
                interested in integrated English literacy and civics 
                education programs;''.
    (e) National Leadership Activities.--Section 243 of such Act (20 
U.S.C. 9253) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by inserting ``, and 
                integrated English literacy and civics education 
                programs'' before the semicolon at the end; and
                    (B) in subparagraph (B), by inserting ``and 
                integrated English literacy and civics education 
                programs'' before ``based on scientific evidence'';
            (2) in paragraph (2)--
                    (A) in subparagraph (B), by inserting ``, and 
                integrated English literacy and civics education 
                programs'' before the semicolon at the end;
                    (B) in subparagraph (D)(ii), insert ``integrated 
                English literacy and civics education programs,'' 
                before ``and workplace literacy programs'';
                    (C) in subparagraph (E)--
                            (i) in clause (i), insert ``, and 
                        integrated English literacy and civics 
                        education programs'' before the semicolon at 
                        the end;
                            (ii) in clause (iii), by striking ``and'' 
                        at the end;
                            (iii) in clause (iv)--
                                    (I) by inserting ``and section 
                                244'' after ``section 231''; and
                                    (II) by striking the period at the 
                                end and inserting ``; and''; and
                            (iv) by adding at the end the following new 
                        clause:
                            ``(v) the extent to which integrated 
                        English literacy and civics education programs 
                        carried out under section 244 lead participants 
                        in such programs to increase their civic 
                        participation and, if applicable, lead such 
                        participants to become United States 
                        citizens.''.
    (f) Integrated English Literacy and Civics Education.--Chapter 4 of 
subtitle A of such Act (20 U.S.C. 9251 et seq.) is amended by adding at 
the end the following new section:

``SEC. 244. INTEGRATED ENGLISH LITERACY AND CIVICS EDUCATION PROGRAMS.

    ``(a) In General.--From funds reserved under section 211(a)(4) for 
each fiscal year, the Secretary shall award grants to States, from 
allocations under subsection (b), for integrated English literacy and 
civics education programs.
    ``(b) Allocations.--
            ``(1) In general.--Subject to paragraph (2) and with 
        respect to funds described in subsection (a), the Secretary 
        shall allocate--
                    ``(A) 65 percent to States on the basis of a 
                State's need for integrated English and civics 
                education programs, as determined by calculating each 
                State's share of a ten-year average of the data 
                compiled by the Office of Immigration Statistics of the 
                Department of Homeland Security, for immigrants 
                admitted for lawful permanent residence for the ten 
                most recent years; and
                    ``(B) 35 percent to the States on the basis of 
                whether the State experienced growth, as measured by 
                the average of the three most recent years for which 
                data compiled by the Office of Immigration Statistics 
                of the Department of Homeland Security are available, 
                for immigrants admitted for lawful permanent residence.
            ``(2) Minimum.--No State shall receive an allocation under 
        paragraph (1) in an amount that is less than $60,000.''.

SEC. 4. EXPANDING EVEN START FAMILY LITERACY PROGRAMS.

    Section 1002(b)(3) of the Elementary and Secondary Education Act of 
1965 is amended to read as follows:
            ``(3) Even start.--For the purpose of carrying out subpart 
        3 of part B, there are authorized to be appropriated 
        $500,000,000 for fiscal year 2008 and such sums as may be 
        necessary for each of the 5 succeeding fiscal years.''.

SEC. 5. RESEARCH IN ADULT EDUCATION.

    (a) In General.--Section 133(c)(A) of the Education Sciences Reform 
Act of 2002 (20 U.S.C. 9533(c)(A)) is amended by inserting ``education 
and'' before ``literacy''.
    (b) National Research and Development Center.--
            (1) In general.--The Secretary of Education shall direct 
        the Commissioner for Education Research of the National Center 
        for Education Research established pursuant to section 131 of 
        the Education Sciences Reform Act of 2002 (20 U.S.C. 9531) to 
        establish a national research and development center for adult 
        education and literacy as described in section 133(c)(A) of 
        such Act (22 U.S.C. 9533(c)(A)) (as amended by subsection (a)).
            (2) Provision for expansion of research.--If, as of the 
        date of the enactment of this Act, the Commissioner has 
        established a center for adult literacy in accordance with 
        section 133(c)(A) of the Education Sciences Reform Act of 2002, 
        the Commissioner shall expand the topic of research of such 
        center to include adult education, in accordance with the 
        amendment made by subsection (a).

SEC. 6. IMMIGRANTS TO NEW AMERICANS.

    The Secretary of Homeland Security shall transfer to the Secretary 
of Education to carry out integrated English literacy and civics 
education programs under section 244 of the Adult Education and Family 
Literacy Act (as added by section 3(f) of this Act) two percent of all 
fees collected under section 218(a)(2) of the Immigration and 
Nationality Act (8 U.S.C. 1188(a)(2)) and two percent of all civil 
penalties collected under section 274A(e)(4) of such Act (8 U.S.C. 
1324a(e)(4)).

SEC. 7. CREDIT FOR EMPLOYER PROVIDED ADULT ENGLISH LITERACY AND BASIC 
              EDUCATION PROGRAMS.

    (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. EMPLOYER-PROVIDED ADULT ENGLISH LITERACY AND BASIC 
              EDUCATION PROGRAMS.

    ``(a) In General.--For purposes of section 38, the credit 
determined under this section with respect to any employer for the 
taxable year is an amount equal to 20 percent of qualified education 
program expenses for the taxable year.
    ``(b) Limitation.--The amount of the credit determined under 
subsection (a) shall not exceed an amount equal to the product of 
$1,000 multiplied by the average number of full-time employees of the 
employer for the taxable year.
    ``(c) Qualified Education Program Expenses.--For purposes of this 
section--
            ``(1) In general.--The term `qualified education program 
        expenses' means expenses paid or incurred by an employer to 
        make available qualified education to employees of the 
        employer, who are individuals of limited English proficiency or 
        have not received a secondary school diploma, or its recognized 
        equivalent, or who lack sufficient mastery of basic educational 
        skills to enable the individuals to function effectively in 
        society.
            ``(2) Qualified education.--The term `qualified education' 
        means adult education and literacy activities provided--
                    ``(A) by an eligible provider which for the fiscal 
                year ending during the employer's taxable year receives 
                Federal funds under section 231 of the Adult Education 
                and Family Literacy Act for adult education and 
                literacy activities, or
                    ``(B) in curriculum approved by an eligible agency.
            ``(3) Other terms defined.--The terms `individuals of 
        limited English proficiency', `eligible provider', `adult 
        education and literacy activities', and `eligible agency' shall 
        have the respective meanings given to such terms in the Adult 
        Education and Family Literacy Act.
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Full-time employment.--An employee shall be 
        considered full-time if such employee is employed at least 30 
        hours per week for 25 or more calendar weeks in the taxable 
        year.
            ``(2) Aggregation rule.--All persons treated as a single 
        employer under subsection (a) or (b) or section 52, or 
        subsection (m) or (o) of section 414, shall be treated as one 
        person.
    ``(e) Denial of Double Benefit.--No deduction or credit shall be 
allowed under any other provision of this chapter for any amount taken 
into account in determining the credit under this section.
    ``(f) Election To Have Credit Not Apply.--A taxpayer may elect (at 
such time and in such manner as the Secretary may by regulations 
prescribe) to have this section not apply for any taxable year.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (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 new paragraph:
            ``(32) the adult English literacy and basic education 
        programs 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 such Code is amended by 
adding at the end the following new item:

``45O. Employer-provided adult English literacy and basic education 
                            programs.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2007.

A: Adults Achieving the American Dream Act of 2007 - Amends the Adult Education and Family Literacy Act to reauthorize appropriations through FY2013 for adult education and literacy services, including integrated English literacy and civics education programs. Increases the maximum amounts that can be reserved from such funds for: (1) the National Institute for Literacy; and (2) national leadership activities. Reserves an amount for integrated English literacy and civics education programs.

Directs the Secretary of Education to award grants to states for integrated English literacy and civics education programs for immigrants admitted for lawful residence in the United States.

Amends the Elementary and Secondary Education Act of 1965 to reauthorize appropriations for Even Start Family Literacy Programs for FY2008 and each of the five succeeding fiscal years.

Amends the Education Sciences Reform Act of 2002 to require the establishment of a national research and development center that includes research in adult education.

Amends the Internal Revenue Code to allow a tax credit for employer-provided adult education and literacy programs.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Possessions Wage Credit Act of 
1993''.

SEC. 2. REPLACEMENT OF POSSESSION TAX CREDIT WITH WAGE-BASED EMPLOYMENT 
              CREDIT.

    (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 new section:

``SEC. 45A. POSSESSIONS EMPLOYMENT CREDIT.

    ``(a) Amount of Credit.--For purposes of section 38, the amount of 
the possessions employment credit determined under this section with 
respect to any eligible employer for any taxable year is 40 percent of 
the qualified possession wages paid or incurred during such taxable 
year.
    ``(b) Qualified Possession Wages.--For purposes of this section, 
the term `qualified possession wages' means any wages paid or incurred 
by an employer for services performed by an employee while such 
employee is a qualified possession employee to the extent such wages do 
not exceed $20,000.
    ``(c) Qualified Possession Employee.--For purposes of this 
section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified possession employee' means, 
        with respect to any period, any employee of an eligible 
        employer if--
                    ``(A) substantially all of the services performed 
                during such period by such employee for such employer 
                are performed within a possession of the United States 
                in a trade or business of the employer,
                    ``(B) such employee is a bona fide resident of such 
                possession, and
                    ``(C) such employee is subject to tax by such 
                possession on income from sources within and without 
                such possession.
            ``(2) Certain individuals not eligible.--The term 
        `qualified possession employee' shall not include--
                    ``(A) any individual described in subparagraph (A), 
                (B), or (C) of section 51(i)(1),
                    ``(B) any 5-percent owner (as defined in section 
                416(i)(1)(B)), and
                    ``(C) any individual unless such individual 
                either--
                            ``(i) is employed by the employer at least 
                        90 days, or
                            ``(ii) has completed at least 120 hours of 
                        services performed for the employer.
    ``(d) Eligible Employer.--For purposes of this section--
            ``(1) In general.--The term `eligible employer' means a 
        domestic corporation which--
                    ``(A) elects the application of this section, and
                    ``(B) meets the conditions of both subparagraphs 
                (A) and (B) of paragraph (2).
            ``(2) Conditions which must be satisfied.--The conditions 
        referred to in paragraph (1) are as follows:
                    ``(A) 3-year period.--If 80 percent or more of the 
                gross income of such domestic corporation for the 3-
                year period immediately preceding the close of the 
                taxable year (or for such part of such period 
                immediately preceding the close of such taxable year as 
                may be applicable) was derived from sources within a 
                possession of the United States (determined without 
                regard to section 904(f)).
                    ``(B) Trade or business.--If 75 percent or more of 
                the gross income of such domestic corporation for such 
                period or such part thereof was derived from the active 
                conduct of a trade or business within a possession of 
                the United States.
    ``(e) Other Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Possession.--The term `possession of the United 
        States' includes the Commonwealth of Puerto Rico and the Virgin 
        Islands.
            ``(2) Wages.--The term `wages' has the same meaning as when 
        used in section 51, except that paragraph (4) of section 51(c) 
        shall not apply.
            ``(3) Treatment of certain foreign taxes.--For purposes of 
        this title, any tax of a foreign country or possession of the 
        United States which is paid or accrued with respect to taxable 
        income of an eligible employer for any taxable year for which 
        an election is in effect under this section shall not be 
        treated as income, war profits, or excess profits paid or 
        accrued to a foreign country or possession of the United 
        States. The preceding sentence shall not apply to the extent 
        such amounts exceed the amount of the credit determined under 
        subsection (a) for such taxable year.
            ``(4) Controlled groups.--
                    ``(A) Treated as single employer.--All employers 
                treated as a single employer under subsection (a) or 
                (b) of section 52 shall be treated as a single employer 
                for purposes of this section.
                    ``(B) Proportionate share.--The credit (if any) 
                determined under this section with respect to each 
                employer described in subparagraph (A) shall be such 
                employer's proportionate share of the wages giving rise 
                to such credit.
            ``(5) Denial of double benefit.--No credit or deduction 
        shall be allowable under any other provision of this title with 
        respect to any wages taken into account in computing the credit 
        allowed by this section.
            ``(6) Certain other rules made applicable.--Rules similar 
        to the rules of section 51(k) and subsections (c), (d), and (e) 
        of section 52 shall apply.
    ``(f) Transition Rules.--For purposes of this section--
            ``(1) In general.--In the case of a taxpayer for which a 
        credit is allowed under section 936 for its last taxable year 
        ending before February 16, 1993, the credit determined under 
        subsection (a) for each of the 5 taxable years in the 
        transition period shall not be less than the lesser of--
                    ``(A) the old section 936 amount, or
                    ``(B) the adjusted wage credit.
            ``(2) Old section 936 amount.--For purposes of paragraph 
        (1)(A)--
                    ``(A) In general.--The term `old section 936 
                amount' means, with respect to any taxable year, the 
                applicable percentage of the lesser of--
                            ``(i) the amount of the credit which would 
                        have been determined under section 936 but for 
                        section 936(i), or
                            ``(ii) 115 percent of the average amount of 
                        the credit under section 936 of the taxpayer 
                        and its predecessors for the 3-taxable-year 
                        period ending with the taxpayer's last taxable 
                        year ending before February 16, 1993 (not 
                        taking into account years in which the taxpayer 
                        or any predecessor was not in existence).
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage shall be 
                determined as follows:

                    ``In the case of the following 
                    year in
                                                           The percent-
                      the transition period:
                                                                age is:
                    1st..............................         100      
                    2d...............................         100      
                    3d...............................          75      
                    4th..............................          50      
                    5th..............................         25.      
            ``(3) Adjusted wage credit.--For purposes of paragraph 
        (1)(B)--
                    ``(A) In general.--The term `adjusted wage credit' 
                means, with respect to any taxable year, the amount 
                determined under subsection (a) by substituting the 
                applicable percentage for 40 percent.
                    ``(B) Applicable percentage.--For purposes of 
                subparagraph (A), the applicable percentage shall be 
                determined as follows:

                    ``In the case of the following 
                    year in
                                                           The percent-
                      the transition period:
                                                                age is:
                    1st..............................         100      
                    2d...............................         100      
                    3d...............................          85      
                    4th..............................          70      
                    5th..............................         55.      
            ``(4) Treatment of additional credit.--If an additional 
        credit is allowed to a taxpayer for any taxable year by reason 
        of this subsection, then, for purposes of this title--
                    ``(A) an election under section 936 shall be 
                treated as in effect with respect to such taxpayer for 
                such taxable year, and
                    ``(B) the excess of the credit allowed under this 
                section for such taxable year over the amount of the 
                credit which would have been allowed without regard to 
                this subsection shall be treated as a credit allowed by 
                section 936.
            ``(5) Transition period.--For purposes of this subsection, 
        the term `transition period' means the 5-taxable-year period 
        beginning with the taxable year which includes February 16, 
        1993.''.
    (b) Termination of Section 936 Credit.--
            (1) In general.--Section 936 of such Code is amended by 
        adding at the end the following new subsection:
    ``(i) Termination.--Except as provided in section 45A(f)(4), no 
credit shall be allowed under this section for any taxable year ending 
on or after February 16, 1993.''.
            (2) Conforming amendment.--Section 27(b) of such Code is 
        amended by adding at the end the following new sentence: 
        ``Except as provided in section 45A(f)(4), no credit shall be 
        allowed under this subsection for any taxable year ending on or 
        after February 16, 1993.''.
    (c) Credit Allowed as Business Credit.--
            (1) In general.--Section 38(b) of such Code is amended by 
        striking ``plus'' at the end of paragraph (7), by striking the 
        period at the end of paragraph (8) and inserting ``, plus'', 
        and by adding at the end the following new paragraph:
            ``(9) the possessions employment credit under section 
        45A(a).''.
            (2) Transition.--Section 39(d) of such Code is amended by 
        adding at the end the following new paragraph:
            ``(4) No carryback of possessions employment credit.--No 
        portion of the unused business credit for any taxable year 
        which is attributable to the credit determined under section 
        45A may be carried back to any taxable year ending before 
        February 16, 1993.''.
    (d) Conforming Amendments.--
            (1) Sections 243(b)(1)(B)(ii) and 1361(b)(2)(D) of such 
        Code are each amended by inserting ``45A or'' before ``936''.
            (2) Section 1504(b)(4) of such Code is amended by inserting 
        ``section 45A (relating to possessions employment credit) or'' 
        before ``section 936''.
            (3) Clause (ii) of section 6091(b)(2)(B) of such Code is 
        amended by inserting ``section 45A (relating to possessions 
        employment credit) or'' before ``section 936''.
            (4) The table of sections for subpart D of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

                              ``Sec. 45A. Possessions employment 
                                        credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years ending on or after February 16, 1993.

SEC. 3. EXTENSION AND MODIFICATION OF DEDUCTION OF HEALTH INSURANCE 
              COSTS OF SELF-EMPLOYED INDIVIDUALS.

    (a) 18-Month Extension.--Paragraph (6) of section 162(l) of the 
Internal Revenue Code of 1986 (relating to special rules for health 
insurance costs of self-employed individuals) is amended by striking 
``June 30, 1992'' and inserting ``December 31, 1993''.
    (b) Increase in Amount of Deduction.--Section 162(l)(1) of such 
Code is amended by striking ``25 percent of''.
    (c) Conforming Amendment.--Paragraph (2) of section 110(a) of the 
Tax Extension Act of 1991 is hereby repealed.
    (d) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to taxable years ending after June 30, 1992.
            (2) Increase.--The amendment made by subsection (b) shall 
        apply to taxable years beginning after December 31, 1992.

A:
Possessions Wage Credit Act of 1993 - Amends the Internal Revenue Code to allow a possessions employment credit for wages paid or incurred by an employer for services performed by an employee within a possession of the United States, if such employee is a bona fide resident of such possession and is subject to its tax on income from sources within and without such possession. 
Terminates the Puerto Rico and possession tax credit.
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