Text: H.R.3776 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in House (10/08/2009)


111th CONGRESS
1st Session
H. R. 3776


To amend the Internal Revenue Code of 1986 to provide a 100 percent deduction for the health insurance costs of individuals.


IN THE HOUSE OF REPRESENTATIVES

October 8, 2009

Mr. Graves introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to provide a 100 percent deduction for the health insurance costs of individuals.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Helping Make Health Insurance Affordable for Individuals and Small Businesses Act of 2009”.

SEC. 2. Deduction for qualified health insurance costs of individuals.

(a) In general.—Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions) is amended by redesignating section 224 as section 225 and by inserting after section 223 the following new section:

“SEC. 224. Costs of qualified health insurance.

“(a) In general.—In the case of an individual, there shall be allowed as a deduction an amount equal to the amount paid during the taxable year for coverage for the taxpayer, his spouse, and dependents under qualified health insurance.

“(b) Qualified health insurance.—For purposes of this section, the term ‘qualified health insurance’ means insurance which constitutes medical care; except that such term shall not include any insurance if substantially all of its coverage is of excepted benefits described in section 9832(c).

“(c) Special rules.—

“(1) COORDINATION WITH MEDICAL DEDUCTION, ETC.—Any amount paid by a taxpayer for insurance to which subsection (a) applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under section 162(l) or 213(a). Any amount taken into account in determining the credit allowed under section 35 shall not be taken into account for purposes of this section.

“(2) DEDUCTION NOT ALLOWED FOR SELF-EMPLOYMENT TAX PURPOSES.—The deduction allowable by reason of this section shall not be taken into account in determining an individual’s net earnings from self-employment (within the meaning of section 1402(a)) for purposes of chapter 2.”.

(b) Deduction allowed in computing adjusted gross income.—Subsection (a) of section 62 of such Code is amended by inserting before the last sentence the following new paragraph:

“(22) COSTS OF QUALIFIED HEALTH INSURANCE.—The deduction allowed by section 224.”.

(c) Clerical amendment.—The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by redesignating the item relating to section 224 as an item relating to section 225 and inserting before such item the following new item:


“Sec. 224. Costs of qualified health insurance.”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.