Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. CREDIT FOR CERTAIN EMPLOYER-PROVIDED RETIREE HEALTH CARE
COVERAGE.

(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. 45N. EMPLOYER-PROVIDED RETIREE HEALTH CARE COVERAGE.

''(a) General Rule.--For purposes of section 38, in the case of an
eligible employer, the retiree health care coverage credit determined
under this section for the taxable year is an amount equal to 10
percent of qualified retiree health care expenses paid or incurred by
the taxpayer during such taxable year in connection with the provision
of qualified retiree health care coverage.
''(b) Eligible Employer.--For purposes of this section, the term
'eligible employer' means for a taxable year any employer--
''(1) which is eligible for the deduction under section 199
for such taxable year, or
''(2) at least 50 percent of the gross receipts of which
derived from activities within the United States for such
taxable year are domestic production gross receipts (as defined
in section 199(c)(4)).
''(c) Qualified Retiree Health Care Expenses.--For purposes of this
section, the term 'qualified retiree health care expenses' means any
amount paid or incurred by an eligible employer for qualified retiree
health care coverage to the extent such amount is attributable to
coverage provided to any employee and such employee's spouse and
dependents while such employee is a qualified employee.
''(d) Qualified Employee.--For purposes of this section--
''(1) In general.--The term 'qualified employee' means any
retired employee of an employer who, with respect to any
period--
''(A) has attained 55 but not 66 years of age, and
''(B) is not provided health insurance coverage
under title XVIII of the Social Security Act.
''(2) Employee.--The term 'employee' does not include an
employee within the meaning of section 401(c)(1).
''(e) Qualified Retiree Health Care Coverage.--For purposes of this
section, the term 'qualified retiree health care coverage' means health
care coverage, through the purchase of insurance or otherwise, the
value of which meets or exceeds on an actuarial basis the value of any
service benefit plan (standard option with preferred provider
organization) offered under chapter 89 of title 5, United States Code.
''(f) Certain Rules Made Applicable.--For purposes of this section,
rules similar to the rules of section 52 shall apply.
''(g) Denial of Double Benefits.--
''(1) Other credits.--No credit under any other provision
of this chapter shall be allowed with respect to qualified
retiree health care expenses taken into account under
subsection (a).
''(2) Deduction.--The amount of any deduction allowable
under this chapter with respect to any qualified retiree health
care expenses paid or incurred during the taxable year shall be
reduced by the amount of the credit allowed under subsection
(a) with respect to such expenses for such taxable year.
''(h) Election.--This section shall apply to any taxpayer for any
taxable year only if such taxpayer elects (at such time and in such
manner as the Secretary may by regulations prescribe) to have this
section apply for such taxable year.
''(i) Termination.--This section shall not apply to premiums paid
or incurred after December 31, 2009.''.
(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 ''and'' at the end of paragraph (29), by
striking the period at the end of paragraph (30) and inserting '',
plus'', and by adding at the end the following:
''(31) the retiree health care coverage credit determined
under section 45N.''.
(c) Credit Allowed Against the Alternative Minimum Tax.--Section
38(c)(4)(B) of the Internal Revenue Code of 1986 (defining specified
credits) is amended by striking the period at the end of clause
(ii)(II) and inserting '', and'', and by adding at the end the
following new clause:
''(iii) the credit determined under section
45N.''.
(d) 10-Year Carryback and Unlimited Carryforward of Credit.--
Subsection (a) of section 39 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new paragraph:
''(4) 10-year carryback and unlimited carryforward for
premiums credit.--In the case of the retiree health care
coverage credit under section 45N--
''(A) this section shall be applied separately from
the business credit (other than such retiree health
care coverage credit),
''(B) paragraph (1) shall be applied by
substituting '10 taxable years' for '1 taxable years'
in subparagraph (A) thereof and by striking '20' in
subparagraph (B) thereof, and
''(C) paragraph (2) shall be applied by striking
'21' in subparagraph (A) thereof and by striking '20'
in subparagraph (B) thereof.''.
(e) Conforming Amendments.--
(1) Section 6501(m) of the Internal Revenue Code of 1986 is
amended by inserting ''45N(h),'' after ''45C(d)(4),''.
(2) 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:

''Sec. 45N. Employer-provided retiree health care insurance
premiums.''.
(f) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after the
date of the enactment of this Act.
Student:
Amends the Internal Revenue Code to allow employers eligible for the tax deduction for income attributable to domestic production activities a tax credit for 10% of the health care expenses of retired employee between age 55 and 66 who are not Medicare-eligible. Terminates such tax credit after 2009.