To provide for a tax credit for offering employer-based health insurance coverage.

1. Adds SEC. __. CREDIT FOR EMPLOYEE HEALTH INSURANCE EXPENSES at the end of title IV

   Adds a section

   In S. 2020 · Placed on Calendar Senate

   (d) Effective Date.--The amendments made by this section shall apply to amounts paid or accrued during the period beginning after December 31, 2006, and before January 1, 2008, and properly allocable to such period, with respect to mortgage insurance contracts issued after December 31, 2006.

   Inserted: SEC. __. CREDIT FOR EMPLOYEE HEALTH INSURANCE EXPENSES.

   Inserted: (a) In General.--Subpart D of part IV of subchapter A of chapter 1 (relating to business-related credits) is amended by adding at the end the following:

   Inserted: "SEC. 45N. EMPLOYEE HEALTH INSURANCE EXPENSES.

   Inserted: "(a) General Rule.--For purposes of section 38, in the case of a qualified small employer, the employee health insurance expenses credit determined under this section is an amount equal to the applicable percentage of the amount paid by the taxpayer during the taxable year for qualified employee health insurance expenses.

   Inserted: "(b) Applicable Percentage.--For purposes of subsection (a), the applicable percentage is equal to--

   Inserted: "(1) 50 percent in the case of an employer with less than 26 qualified employees,

   Inserted: "(2) 40 percent in the case of an employer with more than 25 but less than 36 qualified employees, and

   Inserted: "(3) 30 percent in the case of an employer with more than 35 but less than 51 qualified employees.

   Inserted: "(c) Per Employee Dollar Limitation.--The amount of qualified employee health insurance expenses taken into account under subsection (a) with respect to any qualified employee for any taxable year shall not exceed the maximum employer contribution for self-only coverage or family coverage (as applicable) determined under section 8906(a) of title 5, United States Code, for the calendar year in which such taxable year begins.

   Inserted: "(d) Definitions and Special Rules.--For purposes of this section--

   Inserted: "(1) Qualified small employer.--

   Inserted: "(A) In general.--The term 'qualified small employer' means any small employer which--

   Show 55 more inserted paragraphsShow less

   Inserted: "(i) provides eligibility for health insurance coverage (after any waiting period (as defined in section 9801(b)(4)) to all qualified employees of the employer, and

   Inserted: "(ii) pays at least 70 percent of the cost of such coverage (60 percent in the case of family coverage) for each qualified employee.

   Inserted: "(B) Transition rule for new plans.--

   Inserted: "(i) In general.--If a small employer (or any predecessor) did not provide health insurance coverage to the qualified employees of the employer during the employer's precompliance period, then subparagraph (A) shall be applied to such employer for the first 5 taxable years following such period by substituting '50 percent' for '70 percent' in clause (ii) (or for '60 percent' in such clause, in the case of family coverage).

   Inserted: "(ii) Precompliance period.--For purposes of clause (i), the precompliance periods are--

   Inserted: "(I) the period beginning with the small employer's taxable year preceding its first taxable year beginning after the date of the enactment of this section, and

   Inserted: "(II) the period beginning with the small employer's taxable year preceding the first taxable year for which the employer meets the requirement of subparagraph (A)(i).

   Inserted: An employer not in existence for any period shall be treated in the same manner as an employer which is in existence and not providing coverage.

   Inserted: "(C) Small employer.--

   Inserted: "(i) In general.--For purposes of this paragraph, the term 'small employer' means, with respect to any calendar year, any employer if such employer employed an average of not less than 2 and not more than 50 qualified employees on business days during either of the 2 preceding calendar years. For purposes of the preceding sentence, a preceding calendar year may be taken into account only if the employer was in existence throughout such year.

   Inserted: "(ii) Employers not in existence in preceding year.--In the case of an employer which was not in existence throughout the 1st preceding calendar year, the determination under clause (i) shall be based on the average number of qualified employees that it is reasonably expected such employer will employ on business days in the current calendar year.

   Inserted: "(2) Qualified employee health insurance expenses.--

   Inserted: "(A) In general.--The term 'qualified employee health insurance expenses' means any amount paid by an employer for health insurance coverage to the extent such amount is attributable to coverage provided to any employee while such employee is a qualified employee.

   Inserted: "(B) Exception for amounts paid under salary reduction arrangements.--No amount paid or incurred for health insurance coverage pursuant to a salary reduction arrangement shall be taken into account under subparagraph (A).

   Inserted: "(C) Health insurance coverage.--The term 'health insurance coverage' has the meaning given such term by paragraph (1) of section 9832(b) (determined by disregarding the last sentence of paragraph (2) of such section).

   Inserted: "(3) Qualified employee.--The term 'qualified employee' means an employee of an employer who, with respect to any period, is not provided health insurance coverage under--

   Inserted: "(A) a health plan of the employee's spouse,

   Inserted: "(B) title XVIII, XIX, or XXI of the Social Security Act,

   Inserted: "(C) chapter 17 of title 38, United States Code,

   Inserted: "(D) chapter 55 of title 10, United States Code,

   Inserted: "(E) chapter 89 of title 5, United States Code, or

   Inserted: "(F) any other provision of law.

   Inserted: "(4) Employee.--The term 'employee'--

   Inserted: "(A) means any individual, with respect to any calendar year, who is reasonably expected to receive at least $5,000 of compensation from the employer during such year,

   Inserted: "(B) does not include an employee within the meaning of section 401(c)(1), and

   Inserted: "(C) includes a leased employee within the meaning of section 414(n).

   Inserted: "(5) Compensation.--The term 'compensation' means amounts described in section 6051(a)(3).

   Inserted: "(e) Certain Rules Made Applicable.--For purposes of this section, rules similar to the rules of section 52 shall apply.

   Inserted: "(f) Denial of Double Benefit.--No deduction or credit under any other provision of this chapter shall be allowed with respect to qualified employee health insurance expenses taken into account under subsection (a).

   Inserted: "(g) Termination.--This section shall not apply with respect to any taxable year beginning after December 31, 2006.".

   Inserted: (b) Credit to Be Part of General Business Credit.--Section 38(b) (relating to current year business credit) is amended by striking "and" at the end of paragraph (25), by striking the period at the end of paragraph (26) and inserting ", and", and by adding at the end the following:

   Inserted: "(27) the employee health insurance expenses credit determined under section 45N.".

   Inserted: (c) Credit Allowed Against Minimum Tax.--Subparagraph (B) of section 38(c)(4) (relating to limitation based on amount of tax for specified credits) is amended--

   Inserted: (1) in clause (ii)(II), by striking the period at the end and inserting ", and"; and

   Inserted: (2) by adding at the end the following new clause:

   Inserted: "(iii) the employee health insurance expenses credit determined under section 45N.".

   Inserted: (d) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end the following:

   Inserted: "Sec. 45N. Employee health insurance expenses.".

   Inserted: (e) Employer Outreach.--The Internal Revenue Service shall, in conjunction with the Small Business Administration, develop materials and implement an educational program to ensure that business personnel are aware of--

   Inserted: (1) the eligibility criteria for the tax credit provided under section 45N of the Internal Revenue Code of 1986 (as added by this section),

   Inserted: (2) the methods to be used in calculating such credit, and

   Inserted: (3) the documentation needed in order to claim such credit.

   Inserted: (f) Effective Date.--The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2005.

   Inserted: SEC. __. MODIFICATIONS OF EFFECTIVE DATES OF LEASING PROVISIONS OF THE AMERICAN JOBS CREATION ACT OF 2004.

   Inserted: (a) In General.--Section 849(b) of the American Jobs Creation Act of 2004, as amended by section 553 of this Act,is amended by adding at the end the following new paragraph:

   Inserted: "(3) Leases to foreign entities.--In the case of tax-exempt use property leased to a tax-exempt entity which is a foreign person or entity, the amendments made by this part shall apply to taxable years beginning after December 31, 2004, with respect to leases entered into on or before March 12, 2004.".

   Inserted: (b) Effective Date.--The amendments made by this section shall take effect as if included in the enactment of the American Jobs Creation Act of 2004.

   Inserted: SEC. __. EXTENSION OF SUPERFUND TAXES.

   Inserted: (a) Excise Taxes.--Section 4611(e) is amended to read as follows:

   Inserted: "(e) Application of Hazardous Substance Superfund Financing Rate.--The Hazardous Substance Superfund financing rate under this section shall apply after December 31, 1986, and before January 1, 1996, and after December 31, 2005, and before January 1, 2015."

   Inserted: (b) Corporate Environmental Income Tax.--Section 59A(e) is amended to read as follows:

   Inserted: "(e) Application of Tax.--The tax imposed by this section shall apply to taxable years beginning after December 31, 1986, and before January 1, 1996, and to taxable years beginning after December 31, 2005, and before January 1, 2015."

   Inserted: (c) Effective Dates.--

   Inserted: (1) Excise taxes.--The amendments made by subsection (a) shall take effect on the date of the enactment of this Act.

   Inserted: (2) Income tax.--The amendment made by subsection (b) shall apply to taxable years beginning after December 31, 2005.

   Original wording

   At the end of title IV, add the following:

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As printed