Section 1 Short title
This Act may be cited as the “Health Care for Small Business Act”.
Health Care for Small Business Act
A BILL
To amend the Internal Revenue Code of 1986 to expand the small employer health insurance credit.
Sec. 2 Expansion of Small Employer Health Insurance Credit
in subsection (a), by striking “in the credit period”,
by amending subsection (c) to read as follows:
“(c) Phaseout of credit amount based on average wages—The amount of the credit determined under subsection (b) without regard to this subsection shall be reduced (but not below zero) by such amount multiplied by a fraction—
“(1) the numerator of which is the average annual wages of the employer in excess of the dollar amount in effect under subsection (d)(3)(B), and
“(2) the denominator which is the amount equal to the difference between—
“(A) the dollar amount in effect under subsection (d)(1)(B), and
“(B) the dollar amount in effect under subsection (d)(3)(B).”
in subsection (d)—
in paragraph (1)—
in subparagraph (A), by striking “25” and inserting “50”, and
in subparagraph (B), by striking “an amount equal to twice the dollar amount in effect under paragraph (3)(B) for the taxable year” and inserting “$75,000”, and
in paragraph (3), by amending subparagraph (B) to read as follows:
“(B) Dollar amount—The dollar amount under this subparagraph shall be $50,000.”
in subsection (e)—
by striking paragraph (2), and
by redesignating paragraphs (3) through (5) as paragraphs (2) through (4), respectively,
by amending subsection (g) to read as follows:
“(g) Cost-of-Living adjustment
“(1) In general—In the case of any taxable year beginning in a calendar year after 2017, each dollar amount in paragraphs (1)(B) and (3)(B) of subsection (d) shall be increased by an amount equal to—
“(A) such dollar amount, multiplied by
“(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting “calendar year 2016” for “calendar year 1992” in subparagraph (B) thereof.
“(2) Rounding—If any increase under paragraph (1) is not a multiple of $1,000, such increase shall be rounded to the next lowest multiple of $1,000.”
in subsection (i), by striking “2-year limit on the credit period through the use of successor entities and the avoidance of the limitations” and inserting “limitation”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2016.