Engrossed (House passed) — Coronavirus Aid, Relief, and Economic Security Act (CARES Act)

Record facts

Summary

The engrossed text of H. R. 748, 116th Congress, 1st Session, an Act to amend the Internal Revenue Code of 1986 to repeal the excise tax on high cost employer-sponsored health coverage, which the text records as passed by the House of Representatives on July 17, 2019. Section 1 gives the short title, the Middle Class Health Benefits Tax Repeal Act of 2019. Section 2 strikes section 4980I from chapter 43 of the Code and makes conforming amendments to sections 6051 and 9831(d)(1), including a new definition of applicable employer-sponsored coverage with exceptions for long-term care, dental and vision coverage, and provisions on employee-paid portions and governmental plans. The amendments apply to taxable years beginning after December 31, 2019. Section 3 provides that the Act's budgetary effects are not to be entered on the statutory or Senate PAYGO scorecards.

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Full text

116TH CONGRESS 
1ST SESSION 
H. R. 748 
AN ACT 
To amend the Internal Revenue Code of 1986 to repeal 
the excise tax on high cost employer-sponsored health 
coverage. 
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled, 
2

2 
•HR 748 EH
SECTION 1. SHORT TITLE. 
1
This Act may be cited as the ‘‘Middle Class Health 
2
Benefits Tax Repeal Act of 2019’’. 
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SEC. 2. REPEAL OF EXCISE TAX ON HIGH COST EMPLOYER- 
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SPONSORED HEALTH COVERAGE. 
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(a) IN GENERAL.—Chapter 43 of the Internal Rev-
6
enue Code of 1986 is amended by striking section 4980I. 
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(b) CONFORMING AMENDMENTS.— 
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(1) Section 6051 of such Code is amended— 
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(A) by striking ‘‘section 4980I(d)(1)’’ in 
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subsection (a)(14) and inserting ‘‘subsection 
11
(g)’’, and 
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(B) by adding at the end the following new 
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subsection: 
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‘‘(g) APPLICABLE
EMPLOYER-SPONSORED
COV-
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ERAGE.—For purposes of subsection (a)(14)— 
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‘‘(1) IN GENERAL.—The term ‘applicable em-
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ployer-sponsored coverage’ means, with respect to 
18
any employee, coverage under any group health plan 
19
made available to the employee by an employer 
20
which is excludable from the employee’s gross in-
21
come under section 106, or would be so excludable 
22
if it were employer-provided coverage (within the 
23
meaning of such section 106). 
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‘‘(2) EXCEPTIONS.—The term ‘applicable em-
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ployer-sponsored coverage’ shall not include— 
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3 
•HR 748 EH
‘‘(A) any coverage (whether through insur-
1
ance 
or 
otherwise) 
described 
in 
section 
2
9832(c)(1) (other than subparagraph (G) there-
3
of) or for long-term care, 
4
‘‘(B) any coverage under a separate policy, 
5
certificate, or contract of insurance which pro-
6
vides benefits substantially all of which are for 
7
treatment of the mouth (including any organ or 
8
structure within the mouth) or for treatment of 
9
the eye, or 
10
‘‘(C) any coverage described in section 
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9832(c)(3) the payment for which is not exclud-
12
able from gross income and for which a deduc-
13
tion under section 162(l) is not allowable. 
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‘‘(3) COVERAGE
INCLUDES
EMPLOYEE
PAID 
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PORTION.—Coverage shall be treated as applicable 
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employer-sponsored coverage without regard to 
17
whether the employer or employee pays for the cov-
18
erage. 
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‘‘(4) GOVERNMENTAL PLANS INCLUDED.—Ap-
20
plicable employer-sponsored coverage shall include 
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coverage under any group health plan established 
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and maintained primarily for its civilian employees 
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by the Government of the United States, by the gov-
24
ernment of any State or political subdivision thereof, 
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•HR 748 EH
or by any agency or instrumentality of any such gov-
1
ernment.’’. 
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(2) Section 9831(d)(1) of such Code is amend-
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ed by striking ‘‘except as provided in section 
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4980I(f)(4)’’. 
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(3) The table of sections for chapter 43 of such 
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Code is amended by striking the item relating to sec-
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tion 4980I. 
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(c) EFFECTIVE DATE.—The amendments made by 
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this section shall apply to taxable years beginning after 
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December 31, 2019. 
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SEC. 3. BUDGETARY EFFECTS. 
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(a) STATUTORY PAYGO SCORECARDS.—The budg-
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etary effects of this Act shall not be entered on either 
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PAYGO scorecard maintained pursuant to section 4(d) of 
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the Statutory Pay-As-You-Go Act of 2010. 
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(b) SENATE PAYGO SCORECARDS.—The budgetary 
17
effects of this Act shall not be entered on any PAYGO 
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scorecard maintained for purposes of section 4106 of H. 
19
Con. Res. 71 (115th Congress). 
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Passed the House of Representatives July 17, 2019. 
Attest: 
Clerk. 


116TH CONGRESS 
1ST SESSION 
H. R. 748 
AN ACT 
To amend the Internal Revenue Code of 1986 to 
repeal the excise tax on high cost employer-spon-
sored health coverage.

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