Sec. 136. Credit for small employers adopting auto-enrollment and defined contribution options
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Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by section 2, is amended by adding at the end the following new section: For purposes of section 38, in the case of a small employer, the health benefits plan implementation credit determined under this section for the taxable year is an amount equal to the amount paid or incurred by the taxpayer during the taxable year for qualified health benefits expenses. The credit determined under subsection
(a)with respect to any taxpayer for any taxable year shall not exceed the excess of— $1,500, over sum of the credits determined under subsection
(a)with respect to such taxpayer for all preceding taxable years. For purposes of this section, the term qualified health benefits expenses means, with respect to any taxable year, amounts paid or incurred by the taxpayer during such taxable year for— establishing auto-enrollment which meets the requirements of section x of the short title for coverage of a participant or beneficiary under a group health plan, or health insurance coverage offered in connection with such a plan, and implementing the employer contribution option for health insurance coverage pursuant to section 5000(e)(2). For purposes of this section, the term qualified small employer means any employer for any taxable year if the number of employees employed by such employer during such taxable year does not exceed 50. All employers treated as a single employer under subsection
(a)or
(b)of section 52 shall be treated as a single employer for purposes of this section. No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section. Subsection
(a)shall not apply to any taxable year beginning after the date which is 2 years after the date of the enactment of this section. . Subsection
(b)of section 38 of the Internal Revenue Code of 1986, as amended by section 2, is amended by striking plus at the end of paragraph (34), by striking the period at the end of paragraph
(35)and inserting , plus , and by adding at the end the following new paragraph: in the case of a small employer (as defined in section 45R(d)), the health benefits plan implementation credit determined under section 45R(a). . The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by section 2, is amended by inserting after the item relating to section 45Q the following new item: Sec. 45R. Auto-enrollment and defined contribution option for health benefits plans of small employers. . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.