To amend the Internal Revenue Code of 1986 to expand and simplify the credit for employee health insurance expenses of small employers.
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 ``Small Business Health Care Tax Credit Improvement Act of 2012''.
SEC. 2. EXPANSION AND SIMPLIFICATION OF CREDIT FOR EMPLOYEE HEALTH INSURANCE EXPENSES OF SMALL EMPLOYERS.
(a) Increase in Maximum Number of Eligible Full-Time Employees.-- Subparagraph (A) of section 45R(d)(1) of the Internal Revenue Code of 1986 is amended by striking ``25 full-time equivalent employees'' and inserting ``50 full-time equivalent employees''. (b) Modification of Phaseout of Credit Amount.-- (1) In general.--Subsection (c) of section 45R of such Code is amended to read as follows: ``(c) Phaseout of Credit Amount Based on Number of Employees and Average Wages.-- ``(1) In general.--The amount of the credit determined under subsection (b) shall be adjusted by multiplying-- ``(A) the amount determined under subsection (b), by ``(B) the product of the amount determined under paragraph (2) and the amount determined under paragraph (3). ``(2) Employee adjustment.--The amount determined under this paragraph is a fraction (not more than 1) the numerator of which is the number by which the total number of full-time equivalent employees of the eligible employer is less than 50 and the denominator of which is 30. ``(3) Wages adjustment.--The amount determined under this paragraph is a fraction (not more than...