S. 142Senate108th Congress (2003-2005)In Committee

A bill to amend the Internal Revenue Code of 1986 to allow medicare beneficiaries an advanced refundable credit against income tax for the purchase of outpatient prescription drugs.

Introduced January 13, 2003

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

January 13, 2003

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SenateIntro Referral

Introduced in Senate

January 13, 2003

SenateIntro Referral

Read twice and referred to the Committee on Finance.

January 13, 2003

Floor Debate

2 members

What members said about S. 142 on the floor

2 Republicans
Mike DeWine
Sen. Mike DeWineR-OH · Oct 8, 2004

Mr. President, I rise today to submit a Resolution that would recognize the value and importance of automated external defibrillators (AEDs) in our Nation's communities. It is an important Resolution…

Chuck Hagel
Sen. Chuck HagelR-NE · Oct 8, 2004

Mr. President, I rise today to submit a resolution recognizing the landmark Presidential elections that will take place in Afghanistan this Saturday, October 9, 2004. My colleagues Senators Lugar,…

Bill Text

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Introduced in SenateIssued January 13, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 142 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 142

To amend the Internal Revenue Code of 1986 to allow medicare
beneficiaries an advanced refundable credit against income tax for the
purchase of outpatient prescription drugs.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

January 13, 2003

Mr. Dayton introduced the following bill; which was read twice and
referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to allow medicare
beneficiaries an advanced refundable credit against income tax for the
purchase of outpatient prescription drugs.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. ADVANCED REFUNDABLE CREDIT FOR OUTPATIENT PRESCRIPTION DRUGS
FOR MEDICARE BENEFICIARIES.

(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by redesignating section 36 as section 37 and by inserting
after section 35 the following new section:

``SEC. 36. OUTPATIENT PRESCRIPTION DRUGS FOR MEDICARE BENEFICIARIES.

``(a) In General.--In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by this subtitle
an amount equal to so much of the amount paid during the taxable year,
not compensated for by insurance or otherwise, for qualified outpatient
prescription drugs for such individual as exceeds 10 percent of the
taxpayer's taxable income for such taxable year.
``(b) Eligible Individual.--For purposes of this section, the term
`eligible individual' means, with respect to any taxable year, any
individual entitled to any benefits under title XVIII of the Social
Security Act during such taxable year.
``(c) Qualified Outpatient Prescription Drugs.--For purposes of
this section, the term `qualified outpatient prescription drugs' means,
with respect to any taxable year, any prescription drug the cost of
which is not covered under title XVIII of the Social Security Act
during such taxable year.
``(d) Coordination With Medical Expense Deduction.--The amount
which would (but for this paragraph) be taken into account by the
taxpayer under section 162(l) or 213 for the taxable year shall be
reduced by the credit (if any) allowed by this section to the taxpayer
for such year.
``(e) Advanced Refundability.--The Secretary shall provide for the
advanced refundability of the credit allowed under this section to be
made in quarterly payments to taxpayers providing such information as
the Secretary requires in order to make a proper determination of such
payments.''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period ``, or
from section 36 of such Code''.
(2) 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 striking the last item and inserting the
following new items:

``Sec. 36. Outpatient prescription drugs
for medicare beneficiaries.
``Sec. 37. Overpayments of tax.''.
(c) Notification of Credit.--The Secretary of Health and Human
Services shall notify each individual who is or becomes entitled to
benefits under title XVIII of the Social Security Act in 2002 of the
individual's eligibility for the advanced refundable credit for
outpatient prescription drugs under section 36 of the Internal Revenue
Code of 1986 (as added by this section).
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.
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