,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #dabh  ,,in ,,the ,,house ,,of  
,,representatives  ,february #bh1 #bjad 
,ms4 ,del,bene 7for herself1 ,ms4       
,shea-,porter1 and ,mr4 ,pallone7       
introduced the following bill2 which was
 referred to the ,committee on ,ways and
 ,means  ,a ,,bill  ,to amend the       
,internal ,revenue ,code of #aihf to    
expand and modify the credit for        
employee health insurance expenses of   
small employers4  #a4 ,short title ,this
 ,act may be cited as the ,small        
,business ,tax ,credit ,accessibility   
,act4  #b4 ,sense of the ,congress ,it  
is the sense of the ,congress that the  
,obama administration should work to    
make the small business health care tax 
credit under section #de,r of the       
,internal ,revenue ,code of #aihf more  
accessible for small employers4  #c4    
,expansion and modification of credit   
for employee health insurance expenses  
of small employers  7a7 ,expansion of   
definition of eligible small employer   

,subparagraph 7,a7 of section           
#de,r7d77#a7 of the ,internal ,revenue  
,code of #aihf is amended by striking   
#be and inserting #ej4  7b7 ,amendment  
to phaseout determination ,subsection   
7c7 of section #de,r of the ,internal   
,revenue ,code of #aihf is amended to   
read as follows3  7c7 ,phaseout of      
credit amount based on number of        
employees and average wages ,the amount 
of the credit determined under          
subsection 7b7 7without regard to this  
subsection7 shall be adjusted 7but not  
below zero7 by multiplying such amount  
by the product of--  7#a7 the lesser    
of--  7,a7 a fraction the numerator of  
which is the excess 7if any7 of #ej over
 the total number of full-time          
equivalent employees of the employer and
 the denominator of which is #cj1 and   
7,b7 #a1 and  7#b7 the lesser of--  7,a7
 a fraction the numerator of which is   
the excess 7if any7 of--  7i7 the dollar
 amount in effect under subsection      
7d77#c77;,b7 for the taxable year1      

multiplied by #b1 over  7ii7 the average
 annual wages of the employer for such  
taxable year1 and  the denominator of   
which is the dollar amount so in effect 
under subsection 7d77#c77;,b71 and  7,b7
 #a4  4  7c7 ,partially phased out      
credit allowed for insurance outside an 
,exchange  7#a7 ,in general ,section    
#de,r of the ,internal ,revenue ,code of
 #aihf is amended by redesignating      
subsections 7h7 and 7i7 as subsections  
7i7 and 7j71 respectively1 and by       
inserting after subsection 7g7 the      
following new subsection3  7h7          
,partially phased out credit allowed for
 insurance outside an ,exchange for     
#bjad  7#a7 ,in general ,if an eligible 
small employer offers to its employees  
in a manner other than through an       
,exchange a health plan that meets the  
requirements of paragraph 7#b71 the     
following modifications shall apply with
 respect to a taxable year beginning in 
#bjad3  7,a7 ,qualified health plan     
,this section and section #bhj;,c7h7    

shall be applied for such taxable year  
by treating such plan as a qualified    
health plan4  7,b7 ,reduced credit      
percentage ,subsection 7b7 shall be     
applied--  7i7 by substituting #be      
percent for #ce percent1  7ii7 by       
substituting #ce percent for #ej        
percent1 and  7iii7 without regard to   
through an ,exchange in paragraph 7#a7  
thereof4  7,c7 ,contribution            
arrangements ,subsection 7d77#d7 shall  
be applied without regard to through an 
exchange4  7,d7 ,credit period  7i7 ,in 
general ,the credit under this section  
shall be determined without regard to   
whether such taxable year is in a credit
 period4  7ii7 ,year taken into account 
as portion of credit period in          
subsequent years ,for purposes of       
applying this section to taxable years  
beginning after #bjad in which the      
employer offers a qualified health plan 
7without regard to subparagraph 7,a77 to
 its employees through an ,exchange1    
subsection 7e77#b7 shall be applied by  

substituting #b-;consecutive-taxable for
 #c-;consecutive-taxable4  7#b7         
,requirements ,a health plan meets the  
requirements of this paragraph if such  
plan--  7,a7 provides the essential     
health benefits package described in    
section #acjb7;a7 of the ,patient       
,protection and ,affordable ,care ,act1 
and  7,b7 is offered by a health        
insurance issuer that--  7i7 is licensed
 and in good standing to offer health   
insurance coverage in each ,state in    
which such issuer offers health         
insurance coverage1 and  7ii7 if such   
issuer offers health plans through an   
,exchange1 agrees to charge the same    
premium rate for each qualified health  
plan of the issuer without regard to    
whether the plan is offered through an  
,exchange or whether the plan is offered
 directly from the issuer or through an 
agent4  4  7#b7 ,conforming amendment   
,section #fjee7;b77#b77;,c7 of such     
,code is amended by striking ,exchange  
and inserting ,exchange 7or a plan with 

respect to which a credit is allowed    
under section #de,r by reason of        
subsection 7h7 thereof74  7d7 ,extension
 of credit period ,paragraph 7#b7 of    
section #de,r7e7 of the ,internal       
,revenue ,code of #aihf is amended by   
striking #b-;consecutive-taxable and    
inserting #c-;consecutive-taxable4  7e7 
,average annual wage limitation         
,subparagraph 7,b7 of section           
#de,r7d77#c7 of the ,internal ,revenue  
,code of #aihf is amended to read as    
follows3  7,b7 ,dollar amount ,for      
purposes of paragraph 7#a77;,b7 and     
subsection 7c77#b71 the dollar amount in
 effect under this paragraph is the     
amount equal to #aaj percent of the     
poverty line 7within the meaning of     
section #cf;,b7d77#c77 for a family of  
#d4  4  7f7 ,elimination of uniform     
percentage contribution requirement     
,paragraph 7#d7 of section #de,r7d7 of  
the ,internal ,revenue ,code of #aihf is
 amended by striking a uniform          
percentage 7not less than #ej percent7  

and inserting at least #ej percent4  7g7
 ,elimination of cap relating to average
 local premiums ,subsection 7b7 of      
section #de,r of the ,internal ,revenue 
,code of #aihf is amended by striking   
the lesser of and all that follows and  
inserting the aggregate amount of       
nonelective contributions the employer  
made on behalf of its employees during  
the taxable year under the arrangement  
described in subsection 7d77#d7 for     
premiums for qualified health plans     
offered by the employer to its employees
 through an ,exchange44  7h7 ,credit    
availability for family members in      
certain cases ,clause 7iv7 of section   
#de,r7e77#a77;,a7 of the ,internal      
,revenue ,code of #aihf is amended to   
read as follows3  7iv7 any individual   
who is a spouse or dependent 7within the
 meaning of section #aeb7 of an         
individual described in clause 7i71     
7ii71 or 7iii74  4  7i7 ,effective date 
,the amendments made by this section    
shall apply to amounts paid or incurred 

in taxable years beginning after        
,december #ca1 #bjac4