S. 4267 - Public Safety Officer Health Improvement Act of 2022

117TH CONGRESS
2D SESSION

S. 4267

To amend the Internal Revenue Code of 1986 to create
a tax credit for qualified health insurance premiums of eligible
retired public safety officers, and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 19, 2022

Mr. BENNET 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 create a tax credit for qualified health insurance premiums of eligible retired public safety officers, and for other purposes.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the "Public Safety Officer Health Improvement Act of 2022".

SEC. 2. CREDIT FOR QUALIFIED HEALTH INSURANCE PREMIUMS OF ELIGIBLE RETIRED PUBLIC SAFETY OFFICERS.

(a) IN GENERAL. — Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:

"SEC. 25E. QUALIFIED HEALTH INSURANCE PREMIUMS OF ELIGIBLE RETIRED PUBLIC SAFETY OFFICERS.

"(a) ALLOWANCE OF CREDIT. — In the case of an individual who is an eligible retired public safety officer, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year in an amount equal to so much of the amount paid by such individual for qualified health insurance premiums for such taxable year as does not exceed $4,800.

"(b) DEFINITIONS. — For purposes of this section —

"(1) ELIGIBLE RETIRED PUBLIC SAFETY OFFICER. — The term 'eligible retired public safety officer' has the meaning given such term by section 402(l)(4)(B), except that such term shall not include any individual who has attained age 65.

"(2) QUALIFIED HEALTH INSURANCE PREMIUMS. — The term 'qualified health insurance premiums' has the meaning given such term by section 402(l)(4)(D).

"(c) ADJUSTMENT FOR INFLATION. — In the case of a taxable year beginning after December 31, 2023, the $4,800 amount in subsection (a) shall be increased by an amount equal to —

"(1) such amount, multiplied by

"(2) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting '2022' for '2016' in subparagraph (A)(ii) thereof.

If any amount as adjusted under the preceding sentence is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.

"(d) DENIAL OF DOUBLE BENEFIT. — No credit shall be allowed under this section for a taxable year if the individual (or the individual's spouse) has made the election described in paragraph (6) of section 402(l) for such taxable year.".

(b) CLERICAL AMENDMENT. — The table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 25D the following new item:

"Sec. 25E. Qualified health insurance premiums of eligible retired public safety officers.".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to taxable years beginning after December 31, 2022.

SEC. 3. ADJUSTMENT FOR INFLATION OF EXCLUSION OF DISTRIBUTIONS FOR QUALIFIED HEALTH INSURANCE PREMIUMS OF ELIGIBLE RETIRED PUBLIC SAFETY OFFICERS.

(a) IN GENERAL. — Paragraph (5) of section 402(l) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

"(C) ADJUSTMENT FOR INFLATION. — In the case of a taxable year beginning after December 31, 2023, the $3,000 amount in paragraph (2) shall be increased by an amount equal to —

"(i) such amount, multiplied by

"(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting '2022' for '2016' in subparagraph (A)(ii) thereof.

If any amount as adjusted under the preceding sentence is not a multiple of $5, such amount shall be rounded to the next lowest multiple of $5.".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2022.