US Codex
Bill
Notes

Title II — Elimination of certain tax benefits relating to abortion

S. 946 · 113th Congress · May 14, 2013 · Lineage

II Elimination of certain tax benefits relating to abortion

Sec. 201 Deduction for medical expenses not allowed for abortions

(a)
In general— Section 213 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

“(g) Amounts paid for abortion not taken into account

“(1) In general—An amount paid during the taxable year for an abortion shall not be taken into account under subsection (a).

“(2) Exceptions—Paragraph (1) shall not apply to—

“(A) an abortion—

“(i) in the case of a pregnancy that is the result of an act of rape or incest, or

“(ii) in the case where a woman suffers from a physical disorder, physical injury, or physical illness that would, as certified by a physician, place the woman in danger of death unless an abortion is performed, including a life-endangering physical condition caused by or arising from the pregnancy, and

“(B) the treatment of any infection, injury, disease, or disorder that has been caused by or exacerbated by the performance of an abortion.”

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

Sec. 202 Disallowance of refundable credit for coverage under qualified health plan which provides coverage for abortion

(a)
In general— Subparagraph (A) of section 36B(c)(3) of the Internal Revenue Code of 1986 is amended by inserting before the period at the end the following: “or any health plan that includes coverage for abortions (other than any abortion or treatment described in section 213(g)(2))”.
(b)
Option To purchase or offer separate coverage or plan— Paragraph (3) of section 36B(c) of such Code is amended by adding at the end the following new subparagraph:

“(C) Separate abortion coverage or plan allowed

“(i) Option to purchase separate coverage or plan—Nothing in subparagraph (A) shall be construed as prohibiting any individual from purchasing separate coverage for abortions described in such subparagraph, or a health plan that includes such abortions, so long as no credit is allowed under this section with respect to the premiums for such coverage or plan.

“(ii) Option to offer coverage or plan—Nothing in subparagraph (A) shall restrict any non-Federal health insurance issuer offering a health plan from offering separate coverage for abortions described in such subparagraph, or a plan that includes such abortions, so long as premiums for such separate coverage or plan are not paid for with any amount attributable to the credit allowed under this section (or the amount of any advance payment of the credit under section 1412 of the Patient Protection and Affordable Care Act).”

(c)
Effective date— The amendment made by this section shall apply to taxable years ending after December 31, 2013.

Sec. 203 Disallowance of small employer health insurance expense credit for plan which includes coverage for abortion

(a)
In general— Subsection (h) of section 45R of the Internal Revenue Code of 1986 is amended—
(1)
by striking “Any term” and inserting the following:

“(1) In general—Any term”

(2)
by adding at the end the following new paragraph:

“(2) Exclusion of health plans including coverage for abortion—The terms “qualified health plan” and “health insurance coverage” shall not include any health plan or benefit that includes coverage for abortions (other than any abortion or treatment described in section 213(g)(2)).”

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

Sec. 204 Distributions for abortion expenses from certain accounts and arrangements included in gross income

(a)
Flexible spending arrangements under cafeteria plans— Section 125 of the Internal Revenue Code of 1986 is amended by redesignating subsections (k) and (l) as subsections (l) and (m), respectively, and by inserting after subsection (j) the following new subsection:

“(k) Abortion reimbursement from flexible spending arrangement included in gross income—Notwithstanding section 105(b), gross income shall include any reimbursement for expenses incurred for an abortion (other than any abortion or treatment described in section 213(g)(2)) from a health flexible spending arrangement provided under a cafeteria plan. Such reimbursement shall not fail to be a qualified benefit for purposes of this section merely as a result of such inclusion in gross income.”

(b)
Archer MSAs— Paragraph (1) of section 220(f) of such Code is amended by inserting before the period at the end the following: “, except that any such amount used to pay for an abortion (other than any abortion or treatment described in section 213(g)(2)) shall be included in the gross income of such holder”.
(c)
HSAs— Paragraph (1) of section 223(f) of such Code is amended by inserting before the period at the end the following: “, except that any such amount used to pay for an abortion (other than any abortion or treatment described in section 213(g)(2)) shall be included in the gross income of such beneficiary”.
(d)
Effective dates—
(1)
FSA reimbursements— The amendment made by subsection (a) shall apply to expenses incurred with respect to taxable years beginning after the date of the enactment of this Act.
(2)
Distributions from savings accounts— The amendments made by subsection (b) and (c) shall apply to amounts paid with respect to taxable years beginning after the date of the enactment of this Act.