,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #dabh  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #bh1 #bjad   
,ms4 ,del,bene 7= h]self1 ,ms4          
,%ea-,port]1 & ,mr4 ,pallone7 introduc$ 
! foll[+ bill2 :i* 0 ref]r$ to !        
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to exp& & modify ! cr$it =        
employee heal? insurance exp5ses ( small
 employ]s4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,small ,bus9ess ,tax    
,cr$it ,accessibility ,act4  #b4 ,s5se (
 ! ,congress ,x is ! s5se ( ! ,congress 
t ! ,obama adm9i/ration %\ld "w to make 
! small bus9ess heal? c>e tax cr$it "u  
section #de,r ( ! ,int]nal ,rev5ue ,code
 ( #aihf m accessible = small employ]s4 
#c4 ,expansion & modification ( cr$it = 
employee heal? insurance exp5ses ( small
 employ]s  7a7 ,expansion ( def9ition ( 
eligible small employ] ,subp>agraph 7,a7
 ( section #de,r7d77#a7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#be & ins]t+ #ej4  7b7 ,am5dm5t to      

phase\t det]m9ation ,subsection 7c7 (   
section #de,r ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ to read z foll[s3  7c7
 ,phase\t ( cr$it am\nt bas$ on numb] ( 
employees & av]age wages ,! am\nt ( !   
cr$it det]m9$ "u subsection 7b7 7)\t    
reg>d to ?is subsection7 %all be adju/$ 
7b n bel[ z]o7 by multiply+ su* am\nt by
 ! product (--  7#a7 ! less] (--  7,a7 a
 fraction ! num]ator ( :i* is ! excess  
7if any7 ( #ej ov] ! total numb] (      
full-"t equival5t employees ( ! employ] 
& ! d5om9ator ( :i* is #cj1 &  7,b7 #a1 
&  7#b7 ! less] (--  7,a7 a fraction !  
num]ator ( :i* is ! excess 7if any7 (-- 
7i7 ! doll> am\nt 9 effect "u subsection
 7d77#c77;,b7 = ! taxable ye>1 multipli$
 by #b1 ov]  7ii7 ! av]age annual wages 
( ! employ] = su* taxable ye>1 &  !     
d5om9ator ( :i* is ! doll> am\nt s 9    
effect "u subsection 7d77#c77;,b71 &    
7,b7 #a4  4  7c7 ,p>tially phas$ out    
cr$it all[$ = insurance outside an      
,ex*ange  7#a7 ,9 g5]al ,section #de,r (
 ! ,int]nal ,rev5ue ,code ( #aihf is    

am5d$ by r$esignat+ subsections 7h7 &   
7i7 z subsections 7i7 & 7j71            
respectively1 & by ins]t+ aft]          
subsection 7g7 ! foll[+ new subsection3 
7h7 ,p>tially phas$ out cr$it all[$ =   
insurance outside an ,ex*ange = #bjad   
7#a7 ,9 g5]al ,if an eligible small     
employ] (f]s to its employees 9 a mann] 
o!r ?an ?r\gh an ,ex*ange a heal? plan t
 meets ! requirem5ts ( p>agraph 7#b71 ! 
foll[+ modifications %all apply )       
respect to a taxable ye> beg9n+ 9 #bjad3
  7,a7 ,qualifi$ heal? plan ,?is section
 & section #bhj;,c7h7 %all be appli$ =  
su* taxable ye> by treat+ su* plan z a  
qualifi$ heal? plan4  7,b7 ,r$uc$ cr$it 
p]c5tage ,subsection 7b7 %all be        
appli$--  7i7 by sub/itut+ #be p]c5t =  
#ce p]c5t1  7ii7 by sub/itut+ #ce p]c5t 
= #ej p]c5t1 &  7iii7 )\t reg>d to ?r\gh
 an ,ex*ange 9 p>agraph 7#a7 !re(4  7,c7
 ,contribution arrangem5ts ,subsection  
7d77#d7 %all be appli$ )\t reg>d to     
?r\gh an ex*ange4  7,d7 ,cr$it p]iod    
7i7 ,9 g5]al ,! cr$it "u ?is section    

%all be det]m9$ )\t reg>d to :e!r su*   
taxable ye> is 9 a cr$it p]iod4  7ii7   
,ye> tak5 into acc\nt z portion ( cr$it 
p]iod 9 subsequ5t ye>s ,= purposes (    
apply+ ?is section to taxable ye>s      
beg9n+ aft] #bjad 9 :i* ! employ] (f]s a
 qualifi$ heal? plan 7)\t reg>d to      
subp>agraph 7,a77 to its employees ?r\gh
 an ,ex*ange1 subsection 7e77#b7 %all be
 appli$ by sub/itut+                    
#b-;consecutive-taxable =               
#c-;consecutive-taxable4  7#b7          
,requirem5ts ,a heal? plan meets !      
requirem5ts ( ?is p>agraph if su* plan--
  7,a7 provides ! ess5tial heal? b5efits
 package describ$ 9 section #acjb7;a7 ( 
! ,pati5t ,protection & ,af=dable ,c>e  
,act1 &  7,b7 is (f]$ by a heal?        
insurance issu] t--  7i7 is lic5s$ & 9  
good /&+ to (f] heal? insurance cov]age 
9 ea* ,/ate 9 :i* su* issu] (f]s heal?  
insurance cov]age1 &  7ii7 if su* issu] 
(f]s heal? plans ?r\gh an ,ex*ange1     
agrees to *>ge ! same premium rate = ea*
 qualifi$ heal? plan ( ! issu] )\t reg>d

 to :e!r ! plan is (f]$ ?r\gh an        
,ex*ange or :e!r ! plan is (f]$ directly
 f ! issu] or ?r\gh an ag5t4  4  7#b7   
,con=m+ am5dm5t ,section                
#fjee7;b77#b77;,c7 ( su* ,code is am5d$ 
by /rik+ ,ex*ange & ins]t+ ,ex*ange 7or 
a plan ) respect to :i* a cr$it is all[$
 "u section #de,r by reason ( subsection
 7h7 !re(74  7d7 ,ext5sion ( cr$it p]iod
 ,p>agraph 7#b7 ( section #de,r7e7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ #b-;consecutive-taxable &      
ins]t+ #c-;consecutive-taxable4  7e7    
,av]age annual wage limitation          
,subp>agraph 7,b7 ( section #de,r7d77#c7
 ( ! ,int]nal ,rev5ue ,code ( #aihf is  
am5d$ to read z foll[s3  7,b7 ,doll>    
am\nt ,= purposes ( p>agraph 7#a77;,b7 &
 subsection 7c77#b71 ! doll> am\nt 9    
effect "u ?is p>agraph is ! am\nt equal 
to #aaj p]c5t ( ! pov]ty l9e 7)9 ! mean+
 ( section #cf;,b7d77#c77 = a family (  
#d4  4  7f7 ,elim9ation ( uni=m p]c5tage
 contribution requirem5t ,p>agraph 7#d7 
( section #de,r7d7 ( ! ,int]nal ,rev5ue 

,code ( #aihf is am5d$ by /rik+ a uni=m 
p]c5tage 7n less ?an #ej p]c5t7 & ins]t+
 at lea/ #ej p]c5t4  7g7 ,elim9ation (  
cap relat+ to av]age local premiums     
,subsection 7b7 ( section #de,r ( !     
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ ! less] ( & all t foll[s &     
ins]t+ ! 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*ange44  7h7 ,cr$it availability =   
family memb]s 9 c]ta9 cases ,clause 7iv7
 ( section #de,r7e77#a77;,a7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7iv7 any individual  
:o is a sp\se or dep5d5t 7)9 ! mean+ (  
section #aeb7 ( an individual describ$ 9
 clause 7i71 7ii71 or 7iii74  4  7i7    
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts paid or    
incurr$ 9 taxable ye>s beg9n+ aft]      
,decemb] #ca1 #bjac4