117 STAT. 2480
PUBLIC LAW 108–173—DEC. 8, 2003
SEC. 1202. EXCLUSION FROM GROSS INCOME OF CERTAIN FEDERAL SUBSIDIES FOR PRESCRIPTION DRUG PLANS.
(a) IN GENERAL.—Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139 the following new section: 26 USC 139A.
‘‘SEC. 139A. FEDERAL SUBSIDIES FOR PRESCRIPTION DRUG PLANS.
‘‘Gross income shall not include any special subsidy payment received under section 1860D–22 of the Social Security Act. This section shall not be taken into account for purposes of determining whether any deduction is allowable with respect to any cost taken into account in determining such payment.’’. (b) ALTERNATIVE MINIMUM TAX RELIEF.—Section 56(g)(4)(B) of such Code is amended by inserting ‘‘or 139A’’ after ‘‘section 114’’. (c) CONFORMING AMENDMENT.—The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139 the following new item:
26 USC 56.
‘‘Sec. 139A. Federal subsidies for prescription drug plans.’’. 26 USC 56 note.
(d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act. SEC. 1203. EXCEPTION TO INFORMATION REPORTING REQUIREMENTS RELATED TO CERTAIN HEALTH ARRANGEMENTS.
26 USC 6041.
26 USC 6041 note.
(a) IN GENERAL.—Section 6041 of the Internal Revenue Code of 1986 (relating to information at source) is amended by adding at the end the following new subsection: ‘‘(f) SECTION DOES NOT APPLY TO CERTAIN HEALTH ARRANGEMENTS.—This section shall not apply to any payment for medical care (as defined in section 213(d)) made under— ‘‘(1) a flexible spending arrangement (as defined in section 106(c)(2)), or ‘‘(2) a health reimbursement arrangement which is treated as employer-provided coverage under an accident or health plan for purposes of section 106.’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to payments made after December 31, 2002. Approved December 8, 2003.
LEGISLATIVE HISTORY—H.R. 1 (S. 1): HOUSE REPORTS: No. 108–391 (Comm. of Conference). CONGRESSIONAL RECORD, Vol. 149 (2003): June 26, considered and passed House. July 7, considered and passed Senate, amended, in lieu of S. 1. Nov. 21, House agreed to conference report. Nov. 25, Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 39 (2003): Dec. 8, Presidential remarks and statement.
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