Sec. 215. 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 this subtitle for the taxable year the sum of the monthly credit amounts with respect to such taxpayer for calendar months during such taxable year. The monthly credit amount with respect to any taxpayer for any calendar month is the lesser of— the sum of the monthly limitation amounts determined under subsection
(c)with respect to the taxpayer and the taxpayer’s qualifying family members for such month, or the amount paid for eligible health insurance for the taxpayer and the taxpayer’s qualifying family members for such month. No amount shall be taken into account under subparagraph
(A)or
(B)of paragraph
(1)with respect to any individual for any month unless such month is an eligible coverage month with respect to such individual. The monthly limitation amount with respect to any individual for any eligible coverage month during any taxable year is 1/12 of— $2,000 in the case of an individual who has not attained age 30 as of the beginning of such taxable year, $2,500 in the case of an individual who has attained age 30 but who has not attained age 40 as of such time, $3,000 in the case of an individual who has attained age 40 but who has not attained age 50 as of such time, $3,500 in the case of an individual who has attained age 50 but who has not attained age 60 as of such time, and $4,000 in the case of an individual who has attained age 60 as of such time. The amount otherwise determined under subsection (b)(1)(A) (without regard to this subparagraph but after any other adjustment of such amount under this section) for the taxable year shall be reduced (but not below zero) by 10 percent of the excess (if any) of— the taxpayer’s modified adjusted gross income for such taxable year, over $75,000 (twice such amount in the case of a joint return). For purposes of this paragraph, the term modified adjusted gross income means adjusted gross income increased by— any amount excluded from gross income under section 911, any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax, and an amount equal to the portion of the taxpayer’s social security benefits (as defined in section 86(d)) which is not included in gross income under section 86 for the taxable year. The sum of the monthly limitation amounts taken into account under this section with respect to any taxpayer for any taxable year shall not exceed $14,000. With respect to any taxpayer for any month, monthly limitation amounts shall be taken into account under this section only with respect to the 5 oldest individuals with respect to whom monthly limitation amounts could (without regard to this subparagraph) otherwise be so taken into account. 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 eligible health insurance, is not eligible for other specified coverage, is either— a citizen or national of the United States, or a qualified alien (within the meaning of section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 ( 8 U.S.C. 1641 )), and is not incarcerated, other than incarceration pending the disposition of charges. For purposes of this section, the term qualifying family member means— in the case of a joint return, the taxpayer’s spouse, any dependent of the taxpayer, and with respect to any eligible coverage month, any child (as defined in section 152(f)(1)) of the taxpayer who as of the end of the taxable year has not attained age 27 if such child is covered for such month under eligible health insurance which also covers the taxpayer (in the case of a joint return, either spouse). For purposes of this section— The term eligible health insurance means any health insurance coverage (as defined in section 9832(b)) if— such coverage is either— offered in the individual health insurance market within a State, or is unsubsidized COBRA continuation coverage, such coverage is not a grandfathered health plan (as defined in section 1251 of the Patient Protection and Affordable Care Act) or a grandmothered health plan, substantially all of such coverage is not of excepted benefits described in section 9832(c), such coverage does not include coverage for abortions (other than any abortion necessary to save the life of the mother or any abortion with respect to a pregnancy that is the result of an act of rape or incest), such coverage does not consist of short-term limited duration insurance (as defined by the Secretary), and the State in which such insurance is offered certifies that such coverage meets the requirements of this paragraph. A certification shall not be taken into account under paragraph (1)(E) unless such certification is made available to the public and meets such other requirements as the Secretary may provide. In the case of unsubsidized COBRA continuation coverage— paragraph (1)(E) shall be applied by substituting the plan administrator (as defined in section 414(g)) of the health plan for the State in which such insurance is offered , and the requirements of subparagraph
(A)shall be treated as satisfied if the certification meets such requirements as the Secretary may provide. The term grandmothered health plan means health insurance coverage which is offered in the individual health insurance market as of January 1, 2013, and is permitted to be offered in such market after January 1, 2014, as a result of CCIIO guidance. The term CCIIO guidance means the letter issued by the Centers for Medicare & Medicaid Services on November 14, 2013, to the State Insurance Commissioners outlining a transitional policy for non-grandfathered coverage in the individual health insurance market, as subsequently extended and modified (including by a communication entitled Insurance Standards Bulletin Series—INFORMATION—Extension of Transitional Policy through Calendar Year 2017 issued on February 29, 2016, by the Director of the Center for Consumer Information & Insurance Oversight of such Centers). The term individual health insurance market means the market for health insurance coverage (as defined in section 9832(b)) offered to individuals other than in connection with a group health plan (within the meaning of section 5000(b)(1)). For purposes of this section— The term other specified coverage means any of the following: Coverage under a group health plan (within the meaning of section 5000(b)(1)) other than— coverage under a plan substantially all of the coverage of which is of excepted benefits described in section 9832(c), and COBRA continuation coverage. Coverage under the Medicare program under part A of title XVIII of the Social Security Act. Coverage under the Medicaid program under title XIX of the Social Security Act. Coverage under the CHIP program under title XXI of the Social Security Act. Medical coverage under chapter 55 of title 10, United States Code, including coverage under the TRICARE program. Coverage under a health care program under chapter 17 or 18 of title 38, United States Code, as determined by the Secretary of Veterans Affairs, in coordination with the Secretary of Health and Human Services and the Secretary of the Treasury. Coverage under a health plan under section 2504(e) of title 22, United States Code (relating to Peace Corps volunteers). Coverage under the Nonappropriated Fund Health Benefits Program of the Department of Defense, established under section 349 of the National Defense Authorization Act for Fiscal Year 1995 ( Public Law 103–337 ; 10 U.S.C. 1587 note). In the case of other specified coverage described in paragraph (1)(F), an individual shall not be treated as eligible for such coverage unless such individual is enrolled in such coverage. For purposes of this section— The term unsubsidized COBRA continuation coverage means COBRA continuation coverage no portion of the premiums for which are subsidized by the employer. The term COBRA continuation coverage means continuation coverage provided pursuant to part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (other than under section 609), title XXII of the Public Health Service Act, section 4980B of the Internal Revenue Code of 1986 (other than subsection (f)(1) of such section insofar as it relates to pediatric vaccines), or section 8905a of title 5, United States Code, or under a State program that provides comparable continuation coverage. Such term shall not include coverage under a health flexible spending arrangement. If the taxpayer is married (within the meaning of section 7703) at the close of the taxable year, no credit shall be allowed under this section to such taxpayer unless such taxpayer and the taxpayer’s spouse file a joint return for such taxable year. No credit shall be allowed under this section to any individual who is a dependent with respect to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins. In the case of any individual who is a qualifying family member described in subsection (e)(3) with respect to another taxpayer for any month, in determining the amount of any credit allowable to such individual under this section for any taxable year of such individual which includes such month, the monthly limitation amount with respect to such individual for such month shall be zero and no amount paid for eligible health insurance with respect to such individual for such month shall be taken into account. Amounts described in subsection (b)(1)(B) with respect to any month shall not be taken into account in determining the deduction allowed under section 213 except to the extent that such amounts exceed the amount described in subsection (b)(1)(A) with respect to such month. For purposes of this section, rules similar to the rules of section 213(d)(6) shall apply with respect to any contract for eligible health insurance under which amounts are payable for coverage of an individual other than the taxpayer and the taxpayer’s qualifying family members. 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). If the taxpayer or any qualifying family member of the taxpayer is provided a qualified small employer health reimbursement arrangement for any eligible coverage month, the sum determined under subsection (b)(1)(A) with respect to the taxpayer for such month shall be reduced (but not below zero) by 1/12 of the permitted benefit (as defined in section 9831(d)(3)(C)) under such arrangement. For purposes of this paragraph, the term qualified small employer health reimbursement arrangement has the meaning given such term by section 9831(d)(2). In the case of an employee who is provided a qualified small employer health reimbursement arrangement for less than an entire year, subparagraph
(A)shall be applied by substituting the number of months during the year for which such arrangement was provided for 12 . Nothing in subsection (f)(1)(D) shall be construed as prohibiting any individual from purchasing separate coverage for abortions described in such subparagraph, or a health plan that includes such abortions, so long as no credit is allowed under this section with respect to the premiums for such coverage or plan. Nothing in subsection (f)(1)(D) shall restrict any health insurance issuer offering a health plan from offering separate coverage for abortions described in such clause, or a plan that includes such abortions, so long as premiums for such separate coverage or plan are not paid for with any amount attributable to the credit allowed under this section. The treatment of any infection, injury, disease, or disorder that has been caused by or exacerbated by the performance of an abortion shall not be treated as an abortion for purposes of subsection (f)(1)(D). In the case of any taxable year beginning in a calendar year after 2020, each dollar amount in subsection (c)(1), the $75,000 amount in subsection (c)(2)(A)(ii), and the dollar amount in subsection (c)(3)(A), 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 2019 for calendar year 1992 in subparagraph
(B)thereof, and by substituting for the CPI referred to section 1(f)(3)(A) the amount that such CPI would have been if the annual percentage increase in CPI with respect to each year after 2019 had been one percentage point greater. For purposes of subparagraph (A)(ii)(II), the term annual percentage increase means the percentage (if any) by which CPI for any year exceeds CPI for the prior year. Terms used in this paragraph which are also used in section 1(f)(3) shall have the same meanings as when used in such section. Any increase determined under subparagraph
(A)shall be rounded to the nearest multiple of $50. The Secretary may prescribe such regulations and other guidance as may be necessary or appropriate to carry out this section, section 6050X, and section 7529. . Chapter 77 of such Code is amended by adding at the end the following: Not later than January 1, 2020, the Secretary, in consultation with the Secretary of Health and Human Services, the Secretary of Homeland Security, and the Commissioner of Social Security, shall establish a program (hereafter in this section referred to as the advance payment program ) for making payments to providers of eligible health insurance 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. The advance payment program shall, to the greatest extent practicable, use the methods and procedures used to administer the programs created under sections 1411 and 1412 of the Patient Protection and Affordable Care Act (determined without regard to section 1412(f) of such Act) and each entity that is authorized to take any actions under the programs created under such sections (as so determined) shall, at the request of the Secretary, take such actions to the extent necessary to carry out this section. Except as otherwise provided by the Secretary, for purposes of applying this subsection in the case of eligible health insurance which is not enrolled in through an Exchange established under title I of the Patient Protection and Affordable Care Act, the sections referred to in paragraph
(1)shall be applied by treating references in such sections to an Exchange as references to the provider of such eligible health insurance (or, as the Secretary determines appropriate, to the licensed agent or broker with respect to such insurance), except that the Secretary of Health and Human Services shall carry out the responsibilities of the Exchange under section 1411(e)(4) of the Patient Protection and Affordable Care Act (determined without regard to section 1412(f) of such Act) in the case of such insurance. The advance payment program shall provide that any individual applying to have payments made on their behalf under such program shall, if such individual (or any qualifying family member of such individual taken into account in determining the amount of the credit allowable under section 36C) is employed, submit a written statement from each employer of such individual or such qualifying family member stating whether such individual or qualifying family member (as the case may be) is eligible for other specified coverage in connection with such employment. An employer shall, at the request of any employee, provide the statement under subparagraph
(A)at such time, and in such form and manner, as the Secretary may provide. 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. At the request of an eligible taxpayer, the Secretary shall make a payment to the trustee of the designated health savings account with respect to such taxpayer in an amount equal to the sum of the excesses (if any) described in subsection (c)(2) with respect to months in the taxable year. The term designated health savings account means a health savings account of an individual described in subsection (c)(3) which is identified by the eligible taxpayer for purposes of this section. The term eligible taxpayer means, with respect to any taxable year, any taxpayer if— such taxpayer is allowed a credit under section 36C for such taxable year, the amount described in subparagraph
(A)of section 36C(b)(1) exceeds the amount described in subparagraph
(B)of such section with respect to such taxpayer applied with respect to any month during such taxable year, and the taxpayer or one or more of the taxpayer’s qualifying family members (as defined in section 36C(e)) were eligible individuals (as defined in section 223(c)(1)) for one or more months during such taxable year. Any amount paid the Secretary to a health savings account under this section 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 paragraph
(1)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 paragraph (1). The request referred to in subsection
(a)shall be made at such time and in such form and manner as the Secretary may provide. To the extent that the Secretary determines feasible, such request may identify more than one designated health savings account (and the amount to be paid to each such account) provided that the aggregate of such payments with respect to any taxpayer for any taxable year do not exceed the excess described in subsection (c)(2). In the case of an individual who has a seriously delinquent tax debt (as defined in section 7345(b)) which has not been fully satisfied— if such individual is the eligible taxpayer (or, in the case of a joint return, either spouse), the Secretary shall not make any payment under this section with respect to such taxpayer, and if such individual is the account beneficiary (as defined in section 223(d)(3)) of any health savings account, the Secretary shall not make any payment under this section to such health savings account. To the extent that the Secretary determines feasible, payment under this section may be made in advance on a monthly basis under rules similar to the rules of sections 7529 and 36C(i)(5)(B). . Subpart B of part III of subchapter A of chapter 61 of such Code is amended by adding at the end the following new section: Every person who provides eligible 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 reporting under subsection
(b)shall 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 eligible health insurance— the name, address, and TIN of each individual covered under such policy, the premiums paid with respect to such policy, the amount of advance payments made on behalf of the individual under section 7529, the months during which such health insurance is provided to the individual, whether such policy constitutes a high deductible health plan (as defined in section 223(c)(2)), 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. . Section 6051(a) of such Code is amended by striking and at the end of paragraph (14), by striking the period at the end of paragraph
(15)and inserting , and , and by inserting after paragraph
(15)the following new paragraph: each month with respect to which the employee is eligible for other specified coverage (as defined in section 36C(g)) in connection with employment with the employer. . Section 6724(d)(1)(B) of such Code is amended by striking or at the end of clause (xxiv), by inserting or at the end of clause (xxv), and by inserting after clause
(xxv)the following new clause: section 6050X (relating to returns relating to health insurance coverage credit), . Section 6724(d)(2) of such Code is amended by striking or at the end of subparagraph (HH), by striking the period at the end of subparagraph
(II)and inserting a comma, and by adding after subparagraph
(II)the following new subparagraphs: section 6050X (relating to returns relating to health insurance coverage credit), or section 7529(c)(3) (relating to documentation regarding other specified coverage). . Paragraph
(21)of section 6103(l) of the Internal Revenue Code of 1986 is amended— in subparagraph (A)— by striking any premium tax credit under section 36B or any cost-sharing reduction under section 1402 of the Patient Protection and Affordable Care Act or and inserting any credit under section 36C , by striking , a State’s children’s health insurance program under title XXI of the Social Security Act, or a basic health program under section 1331 of Patient Protection and Affordable Care Act and inserting or a State’s children’s health insurance program under title XXI of the Social Security Act , by striking (as defined in section 36B) in clause
(iv)and inserting (as defined in section 36C(c)(2)(B)) , and by striking or reduction in clause (v), in subparagraph (B)— by striking may disclose to an Exchange and inserting may disclose— to an Exchange , and by striking the period at the end and inserting , and , and by adding at the end the following new clause: in the case of any credit under section 36C with respect to any health insurance, the amount of such credit (or the amount of any advance payment of such credit) to the provider of such insurance (or, as the Secretary determines appropriate, the licensed agent or broker with respect to such insurance). , and in subparagraph (C)(i), by striking amount of, any credit or reduction and inserting amount of any credit . Section 6676(a) of such Code is amended by inserting (25 percent in the case of a claim for refund or credit relating to the health insurance coverage credit under section 36C) after 20 percent . Section 35(g) of such Code is amended by adding at the end the following new paragraph: An eligible coverage month to which the election under paragraph
(11)applies shall not be treated as an eligible coverage month (as defined in section 36C(d)) for purposes of section 36C with respect to the taxpayer or any of the taxpayer’s qualifying family members (as defined in section 36C(e)). In the case of a taxpayer who makes the election under paragraph
(11)with respect to any eligible coverage month in a taxable year or on behalf of whom any advance payment is made under section 7527 with respect to any month in such taxable year— the tax imposed by this chapter for the taxable year shall be increased by the excess, if any, of— the sum of any advance payments made on behalf of the taxpayer under sections 7527 and 7529 for months during such taxable year, over the sum of the credits allowed under this section (determined without regard to paragraph (1)) and section 36C (determined without regard to subsection (i)(5)(A) thereof) for such taxable year, and section 36C(i)(5)(B) shall not apply with respect to such taxpayer for such taxable year. . Section 162(l) of such Code is amended by adding at the end the following new paragraph: The deduction otherwise allowable to a taxpayer under paragraph
(1)for any taxable year shall be reduced (but not below zero) by the sum of— the amount of the credit allowable to such taxpayer under section 36C (determined without regard to subsection (i)(5)(A) thereof) for such taxable year, plus the aggregate payments made with respect to the taxpayer under section 7530 for months during such taxable year. . Section 1324(b)(2) of title 31, United States Code is amended— by inserting 36C, after 36B, , and by striking or 6431 and inserting 6431, or 7530 . 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 by health insurance providers relating to health insurance coverage credit. . The table of sections for chapter 77 of such Code is amended by adding at the end the following new items: Sec. 7529. Advance payment of health insurance coverage credit. Sec. 7530. Excess health insurance coverage credit payable to health savings account. . The amendments made by this section shall apply to months beginning after December 31, 2019, in taxable years ending after such date.
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- Pub. L. 103-337
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Sec. 215
Refundable tax credit for health insurance coverage
Pub. L.Pub. L. 103-337
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