Page:United States Statutes at Large Volume 120.djvu/2979

 120 STAT. 2948

PUBLIC LAW 109–432—DEC. 20, 2006

(b) CLARIFICATION OF QUALIFYING FACILITY.—Section 45K(g)(1) is amended by inserting ‘‘(other than from petroleum based products)’’ after ‘‘coke or coke gas’’. (c) EFFECTIVE DATE.—The amendments made by this section shall take effect as if included in section 1321 of the Energy Policy Act of 2005.

26 USC 45K note.

Health Opportunity Patient Empowerment Act of 2006. 26 USC 1 note.

TITLE III—HEALTH SAVINGS ACCOUNTS SEC. 301. SHORT TITLE.

This title may be cited as the ‘‘Health Opportunity Patient Empowerment Act of 2006’’. SEC. 302. FSA AND HRA TERMINATIONS TO FUND HSAS.

26 USC 106.

VerDate 14-DEC-2004

09:16 Jul 13, 2007

(a) IN GENERAL.—Section 106 (relating to contributions by employer to accident and health plans) is amended by adding at the end the following new subsection: ‘‘(e) FSA AND HRA TERMINATIONS TO FUND HSAS.— ‘‘(1) IN GENERAL.—A plan shall not fail to be treated as a health flexible spending arrangement or health reimbursement arrangement under this section or section 105 merely because such plan provides for a qualified HSA distribution. ‘‘(2) QUALIFIED HSA DISTRIBUTION.—The term ‘qualified HSA distribution’ means a distribution from a health flexible spending arrangement or health reimbursement arrangement to the extent that such distribution— ‘‘(A) does not exceed the lesser of the balance in such arrangement on September 21, 2006, or as of the date of such distribution, and ‘‘(B) is contributed by the employer directly to the health savings account of the employee before January 1, 2012. Such term shall not include more than 1 distribution with respect to any arrangement. ‘‘(3) ADDITIONAL TAX FOR FAILURE TO MAINTAIN HIGH DEDUCTIBLE HEALTH PLAN COVERAGE.— ‘‘(A) IN GENERAL.—If, at any time during the testing period, the employee is not an eligible individual, then the amount of the qualified HSA distribution— ‘‘(i) shall be includible in the gross income of the employee for the taxable year in which occurs the first month in the testing period for which such employee is not an eligible individual, and ‘‘(ii) the tax imposed by this chapter for such taxable year on the employee shall be increased by 10 percent of the amount which is so includible. ‘‘(B) EXCEPTION FOR DISABILITY OR DEATH.—Clauses (i) and (ii) of subparagraph (A) shall not apply if the employee ceases to be an eligible individual by reason of the death of the employee or the employee becoming disabled (within the meaning of section 72(m)(7)). ‘‘(4) DEFINITIONS AND SPECIAL RULES.—For purposes of this subsection— ‘‘(A) TESTING PERIOD.—The term ‘testing period’ means the period beginning with the month in which the qualified HSA distribution is contributed to the health savings

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