,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #cjdf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,augu/ #b1 #bjac ,mr4 
,pallone introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to exp& & simplify !     
cr$it = employee heal? insurance exp5ses
 ( small employ]s4  #a4 ,%ort title ,?is
 ,act may be cit$ z ! ,small ,bus9ess   
,heal? ,c>e ,tax ,cr$it ,improvem5t ,act
 ( #bjac4  #b4 ,expansion &             
simplification ( cr$it = employee heal? 
insurance exp5ses ( small employ]s  7a7 
,increase 9 maximum numb] ( eligible    
full-,"t employees ,subp>agraph 7,a7 (  
section #de,r7d77#a7 ( ! ,int]nal       
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#be full-"t equival5t employees & ins]t+
 #ej full-"t equival5t employees4  7b7  
,modification ( phase\t ( cr$it am\nt   
7#a7 ,9 g5]al ,subsection 7c7 ( section 
#de,r ( su* ,code is am5d$ to read z    
foll[s3  7c7 ,phase\t ( cr$it am\nt bas$
 on numb] ( employees & av]age wages    

7#a7 ,9 g5]al ,! am\nt ( ! cr$it det]m9$
 "u subsection 7b7 %all be adju/$ by    
multiply+--  7,a7 ! am\nt det]m9$ "u    
subsection 7b71 by  7,b7 ! product ( !  
am\nt det]m9$ "u p>agraph 7#b7 & ! am\nt
 det]m9$ "u p>agraph 7#c74  7#b7        
,employee adju/m5t ,! am\nt det]m9$ "u  
?is p>agraph is a fraction 7n m ?an #a7 
! num]ator ( :i* is ! numb] by :i* !    
total numb] ( full-"t equival5t         
employees ( ! eligible employ] is less  
?an #ej & ! d5om9ator ( :i* is #cj4     
7#c7 ,wages adju/m5t ,! am\nt det]m9$ "u
 ?is p>agraph is a fraction 7n m ?an #a7
 ! num]ator ( :i* is ! am\nt by :i* !   
av]age annual wages ( ! eligible employ]
 is less ?an twice ! doll> am\nt 9      
effect "u subsection 7d77#c77;,b7 & !   
d5om9ator ( :i* is su* doll> am\nt4  4  
7#b7 ,con=m+ am5dm5ts  7,a7 ,subsection 
7a7 ( section #de,r ( su* ,code is am5d$
 by ins]t+ 1 z adju/$ "u subsection 7c7 
aft] ! am\nt det]m9$ "u subsection 7b74 
7,b7 ,subsection 7b7 ( section #de,r (  
su* ,code is am5d$ by /rik+ ,subject to 

subsection 7c71 ! & ins]t+ ,!4  7,c7    
,subp>agraph 7,b7 ( section #de,r7d77#c7
 ( su* ,code is am5d$ by /rik+          
subsection 7c77#b7 & ins]t+ subsection  
7c77#c74  7c7 ,av]age annual wage       
limitation increase  7#a7 #bjab & #bjac 
,clause 7i7 ( section #de,r7d77#c77;,b7 
( su* ,code is am5d$ to read z foll[s3  
7i7 #bjaj1 #bjaa1 #bjab1 & #bjac ,!     
doll> am\nt 9 effect "u ?is p>agraph    
is--  7,i7 = taxable ye>s beg9n+ 9      
#bjaj1 #bjaa1 or #bjab1 #be1jjj1 &      
7,,ii7 = taxable ye>s beg9n+ 9 #bjac1   
#bh1ejj4  4  7#b7 ,subsequ5t ye>s       
,clause 7ii7 ( section #de,r7d77#c77;,b7
 ( su* ,code is am5d$ by /rik+ #be1jjj &
 ins]t+ #bh1ejj4  7d7 ,repeal ( uni=mity
 requirem5t = contributions ,p>agraph   
7#d7 ( section #de,r7d7 ( su* ,code is  
am5d$--  7#a7 by /rik+ 9 an am\nt equal 
to a uni=m p]c5tage 7n less ?an #ej     
p]c5t7 ( ! premium co/ ( ! qualifi$     
heal? plan1 &  7#b7 by ins]t+ 79 an     
am\nt n less ?an #ej p]c5t ( ! premium  
co/ ( ! qualifi$ heal? plan7 aft]       

nonelective contribution4  7e7 ,repeal (
 limitation bas$ on /ate av]age premiums
  7#a7 ,9 g5]al ,subsection 7b7 (       
section #de,r ( su* ,code is am5d$ to   
read z foll[s3  7b7 ,heal? insurance    
cr$it am\nt ,subject to subsection 7c71 
! am\nt det]m9$ "u ?is subsection )     
respect to any eligible small employ] is
 equal to #ej p]c5t 7#ce p]c5t 9 ! case 
( a tax-exempt eligible small employ]7 (
 ! aggregate am\nt ( nonelective        
contributions ! employ] made on behalf (
 its employees dur+ ! taxable ye> "u !  
arrangem5t describ$ 9 subsection 7d77#d7
 = premiums = qualifi$ heal? plans (f]$ 
by ! employ] to its employees ?r\gh an  
,ex*ange4  4  7#b7 ,con=m+ am5dm5t      
,p>agraph 7#b7 ( section #de,r7g7 ( su* 
,code is am5d$ by ins]t+ & at ! end (   
subp>agraph 7,a71 by /rik+ 1 & at ! end 
( subp>agraph 7,b7 & ins]t+ a p]iod1 &  
by /rik+ subp>agraph 7,c74  7f7         
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjab4