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Bill
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Title II — Finance

S. 554 · 115th Congress · Mar 7, 2017 · Lineage

II Finance

Sec. 201 Recapture excess advance payments of premium tax credits

Subparagraph (B) of section 36B(f)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new clause:

“(iii) Nonapplicability of limitation—This subparagraph shall not apply to taxable years ending after December 31, 2017, and before January 1, 2020.”

Sec. 202 Premium tax credit and cost-Sharing subsidies

(a)
Repeal of premium tax credit— Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking section 36B.
(b)
Repeal of cost-Sharing subsidy— Section 1402 of the Patient Protection and Affordable Care Act is repealed.
(c)
Repeal of eligibility determinations— The following sections of the Patient Protection and Affordable Care Act are repealed:
(1)
Section 1411 (other than subsection (i), the last sentence of subsection (e)(4)(A)(ii), and such provisions of such section solely to the extent related to the application of the last sentence of subsection (e)(4)(A)(ii)).
(2)
Section 1412.
(d)
Protecting Americans by repeal of disclosure authority To carry out eligibility requirements for certain programs—
(1)
In general— Paragraph (21) of section 6103(l) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

“(D) Termination—No disclosure may be made under this paragraph after December 31, 2019.”

(e)
Effective dates—
(1)
Premium tax credit— The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2019.
(2)
Cost sharing-subsidies and eligibility determinations— The repeals in subsection (b) and (c) shall take effect on December 31, 2019.
(3)
Protecting Americans by rescinding disclosure authority— The amendments made by subsection (d) shall take effect on December 31, 2019.

Sec. 203 Small business tax credit

(a)
In general— Section 45R of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

“(j) Shall not apply—This section shall not apply with respect to amounts paid or incurred in taxable years beginning after December 31, 2019.”

(b)
Effective date— The amendment made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2019.

Sec. 204 Individual mandate

(a)
In general— Section 5000A(c) of the Internal Revenue Code of 1986 is amended—
(1)
in paragraph (2)(B)—
(A)
by striking “after 2015” in clause (iii) and inserting “in 2016”, and
(B)
by adding at the end the following new clause:

“(iv) Zero percent for taxable years beginning after 2016.”

(2)
in paragraph (3)—
(A)
by striking “$695” in subparagraph (A) and inserting “$0”,
(B)
by striking “and $325 for 2014” in subparagraph (B) and inserting “, $325, for 2014, and $695 for 2016”, and
(C)
by striking subparagraph (D).
(b)
Effective date— The amendments made by this section shall apply to months beginning after December 31, 2016.

Sec. 205 Employer mandate

(a)
In general—
(1)
Paragraph (1) of section 4980H(c) of the Internal Revenue Code of 1986 is amended by inserting “($0 in the case of months beginning after December 31, 2016)” after “$2,000”.
(2)
Paragraph (1) of section 4980H(b) of the Internal Revenue Code of 1986 is amended by inserting “($0 in the case of months beginning after December 31, 2016)” after “$3,000”.
(b)
Effective date— The amendments made by this section shall apply to months beginning after December 31, 2016.

Sec. 206 Federal payments to States

(a)
In general— Notwithstanding section 504(a), 1902(a)(23), 1903(a), 2002, 2005(a)(4), 2102(a)(7), or 2105(a)(1) of the Social Security Act (42 U.S.C. 704(a), 1396a(a)(23), 1396b(a), 1397a, 1397d(a)(4), 1397bb(a)(7), 1397ee(a)(1)), or the terms of any Medicaid waiver in effect on the date of enactment of this Act that is approved under section 1115 or 1915 of the Social Security Act (42 U.S.C. 1315, 1396n), for the 1-year period beginning on the date of enactment of this Act, no Federal funds provided from a program referred to in this subsection that is considered direct spending for any year may be made available to a State for payments to a prohibited entity, whether made directly to the prohibited entity or through a managed care organization under contract with the State.
(b)
Definitions— In this section:
(1)
Prohibited entity— The term prohibited entity means an entity, including its affiliates, subsidiaries, successors, and clinics—
(A)
that, as of the date of enactment of this Act—
(i)
is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such Code;
(ii)
is an essential community provider described in section 156.235 of title 45, Code of Federal Regulations (as in effect on the date of enactment of this Act), that is primarily engaged in family planning services, reproductive health, and related medical care; and
(iii)
provides for abortions, other than an abortion—
(I)
if the pregnancy 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 itself; and
(B)
for which the total amount of Federal and State expenditures under the Medicaid program under title XIX of the Social Security Act in fiscal year 2014 made directly to the entity and to any affiliates, subsidiaries, successors, or clinics of the entity, or made to the entity and to any affiliates, subsidiaries, successors, or clinics of the entity as part of a nationwide health care provider network, exceeded $350,000,000.
(2)
Direct spending— The term direct spending has the meaning given that term under section 250(c) of the Balanced Budget and Emergency Deficit Control Act of 1985 (2 U.S.C. 900(c)).

Sec. 207 Medicaid

The Social Security Act (42 U.S.C. 301 et seq.) is amended—
(1)
in section 1902—
(A)
in subsection (a)(10)(A), in each of clauses (i)(VIII) and (ii)(XX), by inserting “and ending December 31, 2019,” after “January 1, 2014,”;
(B)
in subsection (a)(47)(B), by inserting “and provided that any such election shall cease to be effective on January 1, 2018, and no such election shall be made after that date” before the semicolon at the end; and
(C)
in subsection (l)(2)(C), by inserting “and ending December 31, 2019,” after “January 1, 2014,”;
(2)
in section 1905—
(A)
in the first sentence of subsection (b), by inserting “(50 percent on or after January 1, 2020)” after “55 percent”;
(B)
in subsection (y)(1), by striking the semicolon at the end of subparagraph (D) and all that follows through “thereafter”; and
(C)
in subsection (z)(2)—
(i)
in subparagraph (A), by striking “each year thereafter” and inserting “through 2019”; and
(ii)
in subparagraph (B)(ii)(VI), by striking “and each subsequent year”;
(3)
in section 1915(k)(2), by striking “during the period described in paragraph (1)” and inserting “on or after the date referred to in paragraph (1) and before January 1, 2020”;
(4)
in section 1920(e), by adding at the end the following: “This subsection shall not apply after December 31, 2019.”;
(5)
in section 1937(b)(5), by adding at the end the following: “This paragraph shall not apply after December 31, 2019.”; and
(6)
in section 1943(a), by inserting “and before January 1, 2020,” after “January 1, 2014,”.

Sec. 208 Repeal of DSH allotment reductions

Section 1923(f) of the Social Security Act (42 U.S.C. 1396r–4(f)) is amended by striking paragraphs (7) and (8).

Sec. 209 Repeal of the tax on employee health insurance premiums and health plan benefits

(a)
In general— Chapter 43 of the Internal Revenue Code of 1986 is amended by striking section 4980I.
(b)
Effective date— The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 2019.

Sec. 210 Repeal of tax on over-the-counter medications

(a)
HSAs— Subparagraph (A) of section 223(d)(2) of the Internal Revenue Code of 1986 is amended by striking “Such term” and all that follows through the period.
(b)
Archer MSAs— Subparagraph (A) of section 220(d)(2) of the Internal Revenue Code of 1986 is amended by striking “Such term” and all that follows through the period.
(c)
Health flexible spending arrangements and health reimbursement arrangements— Section 106 of the Internal Revenue Code of 1986 is amended by striking subsection (f).
(d)
Effective dates—
(1)
Distributions from savings accounts— The amendments made by subsections (a) and (b) shall apply to amounts paid with respect to taxable years beginning after December 31, 2017.
(2)
Reimbursements— The amendment made by subsection (c) shall apply to expenses incurred with respect to taxable years beginning after December 31, 2017.

Sec. 211 Repeal of tax on health savings accounts

(a)
HSAs— Section 223(f)(4)(A) of the Internal Revenue Code of 1986 is amended by striking “20 percent” and inserting “10 percent”.
(b)
Archer MSAs— Section 220(f)(4)(A) of the Internal Revenue Code of 1986 is amended by striking “20 percent” and inserting “15 percent”.
(c)
Effective date— The amendments made by this section shall apply to distributions made after December 31, 2017.

Sec. 212 Repeal of limitations on contributions to flexible spending accounts

(a)
In general— Section 125 of the Internal Revenue Code of 1986 is amended by striking subsection (i).
(b)
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

Sec. 213 Repeal of tax on prescription medications

Subsection (j) of section 9008 of the Patient Protection and Affordable Care Act is amended to read as follows:

“(j) Repeal—This section shall apply to calendar years beginning after December 31, 2010, and ending before January 1, 2018.”

Sec. 214 Repeal of medical device excise tax

(a)
In general— Chapter 32 of the Internal Revenue Code of 1986 is amended by striking subchapter E.
(b)
Effective date— The amendment made by this section shall apply to sales in calendar quarters beginning after December 31, 2017.

Sec. 215 Repeal of health insurance tax

Subsection (j) of section 9010 of the Patient Protection and Affordable Care Act is amended to read as follows:

“(j) Repeal—This section shall apply to calendar years beginning after December 31, 2013, and ending before January 1, 2017.”

Sec. 216 Repeal of elimination of deduction for expenses allocable to medicare part D subsidy

(a)
In general— Section 139A of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: “This section shall not be taken into account for purposes of determining whether any deduction is allowable with respect to any cost taken into account in determining such payment.”.
(b)
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

Sec. 217 Repeal of chronic care tax

(a)
In general— Subsection (a) of section 213 of the Internal Revenue Code of 1986 is amended by striking “10 percent” and inserting “7.5 percent”.
(b)
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

Sec. 218 Repeal of Medicare tax increase

(a)
In general— Subsection (b) of section 3101 of the Internal Revenue Code of 1986 is amended to read as follows:

“(b) Hospital insurance—In addition to the tax imposed by the preceding subsection, there is hereby imposed on the income of every individual a tax equal to 1.45 percent of the wages (as defined in section 3121(a)) received by such individual with respect to employment (as defined in section 3121(b).”

(b)
SECA— Subsection (b) of section 1401 of the Internal Revenue Code of 1986 is amended to read as follows:

“(b) Hospital insurance—In addition to the tax imposed by the preceding subsection, there shall be imposed for each taxable year, on the self-employment income of every individual, a tax equal to 2.9 percent of the amount of the self-employment income for such taxable year.”

(c)
Effective date— The amendments made by this section shall apply with respect to remuneration received after, and taxable years beginning after, December 31, 2017.

Sec. 219 Repeal of tanning tax

(a)
In general— The Internal Revenue Code of 1986 is amended by striking chapter 49.
(b)
Effective date— The amendment made by this section shall apply to services performed on or after December 31, 2017.

Sec. 220 Repeal of net investment tax

(a)
In general— Subtitle A of the Internal Revenue Code of 1986 is amended by striking chapter 2A.
(b)
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2017.

Sec. 221 Remuneration

Paragraph (6) of section 162(m) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

“(I) Termination—This paragraph shall not apply to taxable years beginning after December 31, 2017.”

Sec. 222 Economic substance doctrine

(a)
In general— Subsection (o) of section 7701 of the Internal Revenue Code of 1986 is repealed.
(b)
Penalty for underpayments— Paragraph (6) of section 6662(b) of the Internal Revenue Code of 1986 is repealed.
(c)
Increased penalty for nondisclosed transactions— Subsection (i) of section 6662 of the Internal Revenue Code of 1986 is repealed.
(d)
Reasonable cause exception for underpayments— Paragraph (2) of section 6664(c) of the Internal Revenue Code of 1986 is repealed.
(e)
Reasonable cause exception for nondisclosed transactions— Paragraph (2) of section 6664(d) of the Internal Revenue Code of 1986 is repealed.
(f)
Erroneous claim for refund or credit— Subsection (c) of section 6676 of the Internal Revenue Code of 1986 is repealed.
(g)
Effective date— The repeals made by this section shall apply to transactions entered into, and to underpayments, understatements, or refunds and credits attributable to transactions entered into, after December 31, 2017.

Sec. 223 Budgetary savings for extending medicare solvency

As a result of policies contained in this Act, the Secretary of the Treasury shall transfer to the Federal Hospital Insurance Trust Fund under section 1817 of the Social Security Act (42 U.S.C. 1395i) $379,300,000,000 (which represents the full amount of on-budget savings during the period of fiscal years 2018 through 2027) for extending Medicare solvency, to remain available until expended.