1. Short title
This Act may be cited as the “Small Business Health Insurance Affordability Act of 2014”.
Small Business Health Insurance Affordability Act of 2014
A BILL
To amend the Internal Revenue Code of 1986 to modify the small employer health insurance credit, and for other purposes.
2. Modification of small employer health insurance credit
Increase in eligible business size—
In general— Subparagraph (A) of section 45R(d)(1) of the Internal Revenue Code of 1986 is amended by striking “25” and inserting “50”.
Phaseout amount based on number of employees— Paragraph (1) of section 45R(c) of such Code is amended by striking “10” and inserting “20”.
Maximum average annual wages— Subparagraph (B) of section 45R(d)(3) of such Code is amended—
by redesignating clause (ii) as clause (iii),
by striking “2013” in clause (iii), as so redesignated, and inserting “2014”,
by striking “$25,000” in clause (iii), as so redesignated, and inserting “$35,000”,
by striking “calendar year 2012” in clause (iii), as so redesignated, and inserting “calendar year 2013”, and
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 $35,000.”
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”.
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.”.
Credit period— Section 45R(e)(2) of the Internal Revenue Code of 1986 is amended by striking “2-consecutive-taxable year period” and inserting “3-consecutive-taxable year period”.
Coverage providing essential health benefits through non-Exchange plan treated as qualified— Section 45R(e) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
“(6) Coverage providing essential health benefits through non-Exchange plan treated as qualified—Health insurance providing the essential health benefits specified in section 1302(b)(1) of the Patient Protection and Affordable Care Act (42 U.S.C. 18022(b)(1)) through a plan not offered through an Exchange shall be treated as a qualified health plan offered through an Exchange.”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2013.