Sec. 212. New HSA credit
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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 a qualifying individual, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year, an amount equal to the HSA credit amount of the individual for the taxable year. For purposes of this section, the term qualifying individual means, with respect to any month, any individual who for such month is a deposit qualifying resident (as defined in section 102(b)(2) of the Patient Freedom Act of 2015 ) of a State described in section 101(a)(3) of such Act that elects to have section 102(b) of such Act carried out by way of the credit determined under this section.
For purposes of this section, the term HSA credit amount means, with respect to any taxable year, the sum of the HSA deposit amounts determined under section 103 of the Patient Freedom Act of 2015 with respect to the individual for all months ending during the taxable year. For purposes of this section— If the advance payments to an individual for a taxable year under subsection
(e)exceed the credit allowed by this section with respect to such individual for such taxable year, the tax imposed by this chapter for the taxable year shall be increased by the amount of such excess. If the credit allowed by this section (determined without regard to this subparagraph) with respect to an individual for a taxable year exceeds the advance payments to such individual for such taxable year under subsection (e), the Secretary shall, in lieu of a credit allowed against the tax imposed by this subtitle, make a payment on behalf of such individual to such individual’s health savings account in an amount equal to such excess. If the taxpayer is married (within the meaning of section 7703) at the close of the taxable year, the credit shall be allowed under this section only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year. The Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, shall establish a program— to make advance determinations with respect to the eligibility of individuals for the credit allowed under this section, and to make advance payments of the credit allowed under this section directly to the health savings account of any such individual so eligible. Such program shall be established under rules similar to the rules of section 1412 of the Patient Protection and Affordable Care Act, except that advance determinations and advance payments shall be made on request of the individual with respect to whom the determination is to be made and taking into account the enrollment process (including any opt-out election under such process) established under section 104(c)(1) of the Patient Freedom Act of 2015 . . The table of sections for such subpart is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. HSA credit. . The amendments made by this section shall apply to taxable years beginning after December 31, 2015.