Sec. 2. Refundable tax credit for health insurance coverage
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Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section: In the case of an individual, there shall be allowed as a credit against the tax imposed by subtitle A the aggregate monthly credit amounts determined under subsection
(b)with respect to the taxpayer and the taxpayer’s qualifying family members for eligible coverage months beginning during the taxable year. The monthly credit amount with respect to any individual for any eligible coverage month is 1/12 of— $900 in the case of an individual who has not attained age 18 as of the beginning of such month, $1,200 in the case of an individual who has so attained age 18 but who has not so attained age 35, $2,100 in the case of an individual who has so attained age 35, but who has not so attained age 50, and $3,000 in the case of an individual who has so attained age 50. In the case of any taxable year beginning in a calendar year after 2016, each dollar amount contained in paragraph
(1)shall be increased by an amount equal to— such dollar amount, multiplied by the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2015 for calendar year 1992 in subparagraph
(B)thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $50. For purposes of this section, the term eligible coverage month means, with respect to any individual, any month if, as of the first day of such month, the individual— is covered by qualified health insurance, does not have other specified coverage, and is not imprisoned under Federal, State, or local authority. For purposes of this section, the term qualifying family member means— in the case of a joint return, the taxpayer’s spouse, and any dependent of the taxpayer. For purposes of this section, the term qualified health insurance means health insurance coverage (other than excepted benefits as defined in section 9832(c)) which constitutes medical care. For purposes of this section, an individual has other specified coverage for any month if, as of the first day of such month— Such individual— is entitled to benefits under part A of title XVIII of the Social Security Act or is enrolled under part B of such title, or is enrolled in the program under title XIX or XXI of such Act (other than under section 1928 of such Act). Such individual— is enrolled in a health benefits plan under chapter 89 of title 5, United States Code, is entitled to receive benefits under chapter 55 of title 10, United States Code, is entitled to receive benefits under chapter 17 of title 38, United States Code, is enrolled in a group health plan (within the meaning of section 5000(b)(1)) which is subsidized by the employer, or is a member of a health care sharing ministry. For purposes of this subsection, the term health care sharing ministry means an organization— which is described in section 501(c)(3) and is exempt from taxation under section 501(a), members of which share a common set of ethical or religious beliefs and share medical expenses among members in accordance with those beliefs and without regard to the State in which a member resides or is employed, members of which retain membership even after they develop a medical condition, which (or a predecessor of which) has been in existence at all times since December 31, 1999, and medical expenses of its members have been shared continuously and without interruption since at least December 31, 1999, and which conducts an annual audit which is performed by an independent certified public accounting firm in accordance with generally accepted accounting principles and which is made available to the public upon request. If the credit allowed under subsection
(a)(determined without regard to clause (ii)) for any taxable year exceeds the amount of premiums paid by the taxpayer for coverage of the taxpayer and the taxpayer’s qualifying family members under qualified health insurance for eligible coverage months beginning in the taxable year— at the request of the taxpayer, the Secretary shall pay the amount of such excess to one or more health savings accounts of the taxpayer or of any qualifying family member of the taxpayer, and the credit allowed under subsection
(a)for such taxable year shall not exceed the amount of such premiums. Amounts distributed from an Archer MSA (as defined in section 220(d)) or from a health savings account (as defined in section 223(d)) shall not be taken into account as premiums paid under subparagraph (A). For purposes of this paragraph, rules similar to the rules of section 213(d)(6) shall apply with respect to any contract for qualified health insurance under which amounts are payable for coverage of an individual other than the taxpayer and qualifying family members. Any amount paid the Secretary to a health savings account under this paragraph shall be treated for purposes of this title in the same manner as a rollover contribution described in section 223(f)(5). Any amount described in clause
(i)shall not be taken into account in applying section 223(f)(5)(B) with respect to any other amount and the limitation of section 223(f)(5)(B) shall not apply with respect to the application of clause (i). Nothing in any provision of law shall be construed— to prevent an individual from establishing a health savings account (as defined in section 223(d)) merely because such individual is not an eligible individual (as defined in section 223(c)), or to prevent such an account from being treated as a health savings account merely because all or a substantial portion of the contributions to such account are described in this paragraph. With respect to any taxable year— the amount which would (but for this subsection) be allowed as a credit to the taxpayer under subsection
(a)shall be reduced (but not below zero) by the aggregate amount paid on behalf of such taxpayer under section 7529 for months beginning in such taxable year, and the tax imposed by section 1 for such taxable year shall be increased by the excess (if any) of— the aggregate amount paid on behalf of such taxpayer under section 7529 for months beginning in such taxable year, over the amount which would (but for this subsection) be allowed as a credit to the taxpayer under subsection (a). For purposes of any deduction allowed under section 162(l), 213, or 224, and any credit allowed under section 35, any health insurance premiums which would (but for this paragraph) be taken into account shall be reduced (but not below zero) by the amount of the credit allowed under this section (determined without regard to paragraphs
(1)and
(2)of this subsection). No credit shall be allowed under this section to any individual who is— not a citizen or lawful permanent resident of the United States for the calendar year in which the taxable year begins, or a dependent with respect to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins. The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section, section 6050W, and section 7529. . Chapter 77 of the Internal Revenue Code of 1986 (relating to miscellaneous provisions) is amended by adding at the end the following: Not later than January 1, 2016, the Secretary shall establish a program for making payments to providers of qualified health insurance (as defined in section 36C(e)) on behalf of taxpayers eligible for the credit under section 36C. The aggregate payments made under this section with respect to any taxpayer, determined as of any time during any calendar year, shall not exceed the monthly credit amounts determined with respect to such taxpayer under section 36C for months during such calendar year which have ended as of such time. Under rules similar to the rules of section 36C(g)(1), any amount otherwise payable on behalf of the taxpayer under subsection
(a)with respect to any eligible coverage month which is in excess of the amount of premiums paid by the taxpayer for coverage of the taxpayer and the taxpayer’s qualifying family members under qualified health insurance for such month shall be payable only to one or more health savings accounts of the taxpayer or of any qualifying family member of the taxpayer. The Secretary shall establish a process under which individuals are certified as eligible for payment under this section. Such process shall include an initial application by the taxpayer to determine eligibility and thereafter continued eligibility shall be determined, to the maximum extent feasible, by the Secretary on the basis of information provided under section 6050X. For purposes of this section, terms used in this section which are also used in section 36C shall have the same meaning as when used in section 36C. . Subpart B of part III of subchapter A of chapter 61 of such Code (relating to information concerning transactions with other persons) is amended by adding at the end the following new section: Every person who provides qualified health insurance for any month of any calendar year with respect to any individual shall, at such time as the Secretary may prescribe, make the return described in subsection
(b)with respect to each such individual. With respect to any individual with respect to whom payments under section 7529 are made by the Secretary, the Secretary may require that reporting under subsection
(b)be made on a monthly basis. A return is described in this subsection if such return— is in such form as the Secretary may prescribe, and contains, with respect to each policy of qualified health insurance— the name, address, and TIN of each individual covered under such policy, the premiums paid with respect to such policy, and such other information as the Secretary may prescribe. Every person required to make a return under subsection
(a)shall furnish to each individual whose name is required to be set forth in such return a written statement showing— the name and address of the person required to make such return and the phone number of the information contact for such person, and the information required to be shown on the return with respect to such individual. The written statement required under the preceding sentence shall be furnished on or before January 31 of the year following the calendar year to which such statement relates. For purposes of this section, terms used in this section which are also used in section 36C shall have the same meaning as when used in section 36C. . Subparagraph
(B)of section 6724(d)(1) of such Code is amended by striking or at the end of clause (xxiv), by striking and at the end of clause
(xxv)and inserting or , and by inserting after clause
(xxv)the following new clause: section 6050X (relating to returns relating to credit for health insurance coverage), and . Paragraph
(2)of section 6724(d) of such Code is amended by striking or at the end of subparagraph (GG), by striking the period at the end of subparagraph
(HH)and inserting , or , and by adding after subparagraph
(HH)the following new subparagraph: section 6050X (relating to returns relating to credit for health insurance coverage). . Subsection
(l)of section 6103 of such Code is amended by adding at the end the following new paragraph: The Secretary may, on behalf of taxpayers eligible for the credit under section 36C, disclose to a provider of qualified health insurance (as defined in section 36(e)) or a trustee of a health savings account (and persons acting on behalf of such provider or such trustee), return information with respect to any such taxpayer only to the extent necessary (as prescribed by regulations issued by the Secretary) to carry out sections 36C(g)(1) (relating to credit in excess of premiums only payable to a health savings account) and 7529 (relating to advance payment of credit for health insurance coverage). . Paragraph
(3)of section 6103(a) of such Code is amended by striking or
(21)and inserting (21), or
(22). Paragraph
(2)of section 7213(a) of such Code is amended by striking or
(21)and inserting (21), or
(22). Subject to section 1(c), the amendments made by this section shall take effect on the date of the enactment of this Act. Paragraph
(2)of section 1324(b) of title 31, United States Code, is amended by inserting 36C, after 36B, . The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Health insurance coverage. . The table of sections for subpart B of part III of subchapter A of chapter 61 of such Code is amended by adding at the end the following new item: Sec. 6050X. Returns relating to credit for health insurance coverage. . The table of sections for chapter 77 of such Code is amended by adding at the end the following new item: Sec. 7529. Advance payment of credit for health insurance coverage. . Subject to section 1(c), the amendments made by this section shall apply with respect to coverage months beginning on or after the King v. Burwell effective date.