Text: S.1325 — 113th Congress (2013-2014)All Information (Except Text)

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Introduced in Senate (07/18/2013)


113th CONGRESS
1st Session
S. 1325


To amend the Internal Revenue Code of 1986 to modify the small employer health insurance credit, and for other purposes.


IN THE SENATE OF THE UNITED STATES

July 18, 2013

Mr. Begich (for himself and Ms. Landrieu) 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 modify the small employer health insurance credit, and for other purposes.

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 “Small Business Tax Credits Improvement Act”.

SEC. 2. Modification of small employer health insurance credit.

(a) Increase in eligible business size.—

(1) IN GENERAL.—Subparagraph (A) of section 45R(d)(1) of the Internal Revenue Code of 1986 is amended by striking “25” and inserting “50”.

(2) PHASEOUT AMOUNT.—Paragraph (1) of section 45R(c) of such Code is amended—

(A) by striking “10” and inserting “20”, and

(B) by striking “15” and inserting “30”.

(3) MAXIMUM AVERAGE ANNUAL WAGES.—Subparagraph (B) of section 45R(d)(3) of such Code is amended—

(A) by redesignating clause (ii) as clause (iii),

(B) by striking “2013” in clause (iii), as so redesignated, and inserting “2014”,

(C) by striking “$25,000” in clause (iii), as so redesignated, and inserting “$37,500”,

(D) by striking “calendar year 2012” in clause (iii), as so redesignated, and inserting “calendar year 2013”, and

(E) by inserting after clause (i) the following new clause:

“(ii) 2014.—The dollar amount in effect under this paragraph for taxable years beginning in 2014 is $37,500.”.

(b) Elimination of uniform percentage contribution requirement.—Paragraph (4) of section 45R(d) of the Internal Revenue Code of 1986 is amended by striking “a uniform percentage (not less than 50 percent)” and inserting “at least 50 percent”.

(c) Elimination of cap relating to average local premiums.—Subsection (b) of section 45R of the Internal Revenue Code of 1986 is amended by striking “the lesser of” and all that follows and inserting “the aggregate amount of nonelective contributions the employer made on behalf of its employees during the taxable year under the arrangement described in subsection (d)(4) for premiums for qualified health plans offered by the employer to its employees through an Exchange.”.

(d) Credit availability for employee-Owners and family members in certain cases.—Subparagraph (A) of section 45R(e)(1) of the Internal Revenue Code of 1986 is amended—

(1) by striking the period at the end and inserting a comma, and

(2) by adding at the end the following flush text:

“unless at least 1 full-time equivalent employee who is not described in clause (i), (ii), (iii), or (iv) for the taxable year was employed by the employer for at least 6 months during the taxable year (or the entire period during the taxable year that the business was in existence, if shorter than 6 months).”.

(e) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2013.