Section 1 Short title
This Act may be cited as the “Health Coverage Tax Credit Extension Act of 2015”.
Health Coverage Tax Credit Extension Act of 2015
A BILL
To amend the Internal Revenue Code of 1986 to extend and modify the credit for health insurance costs of certain eligible individuals, and for other purposes.
Sec. 2 Extension and modification of Health Coverage Tax Credit
Extension— Subparagraph (B) of section 35(b)(1) of the Internal Revenue Code of 1986 is amended by striking “before January 1, 2014” and inserting “before January 1, 2020”.
Coordination with credit for coverage under a qualified health plan— Subsection (g) of section 35 of the Internal Revenue Code of 1986 is amended—
by redesignating paragraph (11) as paragraph (13), and
by inserting after paragraph (10) the following new paragraphs:
“(11) Election
“(A) In general—A taxpayer may elect to have this section apply for any eligible coverage month.
“(B) Timing and applicability of election—Except as the Secretary may provide—
“(i) an election to have this section apply for any eligible coverage month in a taxable year shall be made not later than the due date (including extensions) for the return of tax for the taxable year, and
“(ii) any election for this section to apply for an eligible coverage month shall apply for all subsequent eligible coverage months in the taxable year and, once made, shall be irrevocable with respect to such months.
“(12) Coordination with premium tax credit
“(A) In general—An eligible coverage month to which the election under paragraph (11) applies shall not be treated as a coverage month (as defined in section 36B(c)(2)) for purposes of section 36B with respect to the taxpayer.
“(B) Coordination with advance payments of premium tax credit—In the case of a taxpayer who makes the election under paragraph (11) with respect to any eligible coverage month in a taxable year or on behalf of whom any advance payment is made under section 7527 with respect to any month in such taxable year—
“(i) the tax imposed by this chapter for the taxable year shall be increased by the excess, if any, of—
“(I) the sum of any advance payments made on behalf of the taxpayer under section 1412 of the Patient Protection and Affordable Care Act and section 7527 for months during such taxable year, over
“(II) the sum of the credits allowed under this section (determined without regard to paragraph (1)) and section 36B (determined without regard to subsection (f)(1) thereof) for such taxable year, and
“(ii) section 36B(f)(2) shall not apply with respect to such taxpayer for such taxable year, except that if such taxpayer received any advance payments under section 7527 for any month in such taxable year and is later allowed a credit under section 36B for such taxable year, then section 36B(f)(2) shall be applied by substituting the amount determined under clause (i) for the amount determined under section 36B(f)(2)(A).”
Extension of advance payment program—
In general— Subsection (a) of section 7527 of the Internal Revenue Code of 1986 is amended by striking “August 1, 2003” and inserting “the date that is 1 year after the date of the enactment of the Health Coverage Tax Credit Extension Act of 2015”.
Conforming amendment— Paragraph (1) of section 7527(e) of such Code is amended by striking “occurring” and all that follows and inserting “occurring—
“(A) after the date that is 1 year after the date of the enactment of the Health Coverage Tax Credit Extension Act of 2015, and
“(B) prior to the first month for which an advance payment is made on behalf of such individual under subsection (a).”
Individual insurance treated as qualified health insurance without regard to enrollment date—
In general— Subparagraph (J) of section 35(e)(1) of the Internal Revenue Code of 1986 is amended by striking “insurance if the eligible individual” and all that follows through “For purposes of” and inserting “insurance. For purposes of”.
Special rule— Subparagraph (J) of section 35(e)(1) of such Code, as amended by paragraph (1), is amended by striking “insurance.” and inserting “insurance (other than coverage enrolled in through an Exchange established under the Patient Protection and Affordable Care Act).”.
Conforming amendment— Subsection (m) of section 6501 of the Internal Revenue Code of 1986 is amended by inserting “, 35(g)(11)” after “30D(e)(4)”.
Effective date—
In general— Except as provided in paragraph (2), the amendments made by this section shall apply to coverage months in taxable years beginning after December 31, 2013.
Plans available on individual market for use of tax credit— The amendment made by subsection (d)(2) shall apply to coverage months in taxable years beginning after December 31, 2015.
Transition rule— Notwithstanding section 35(g)(11)(B)(i) of the Internal Revenue Code of 1986 (as added by this Act), an election to apply section 35 of such Code to an eligible coverage month (as defined in section 35(b) of such Code) (and not to claim the credit under section 36B of such Code with respect to such month) in a taxable year beginning after December 31, 2013, and before the date of the enactment of this Act—
may be made at any time on or after such date of enactment and before the expiration of the 3-year period of limitation prescribed in section 6511(a) with respect to such taxable year; and
may be made on an amended return.
Sec. 3 Agency outreach
As soon as possible after the date of the enactment of this Act, the Secretaries of the Treasury, Health and Human Services, and Labor (or such Secretaries' delegates) and the Director of the Pension Benefit Guaranty Corporation (or the Director's delegate) shall carry out programs of public outreach, including on the Internet, to inform potential eligible individuals (as defined in section 35(c)(1) of the Internal Revenue Code of 1986) of the extension of the credit under section 35 of the Internal Revenue Code of 1986 and the availability of the election to claim such credit retroactively for coverage months beginning after December 31, 2013.