Legislative update: House passes trade bill with tax measure concerning health insurance

The U.S. House of Representatives passed H.R. 4521 , the ‘‘America COMPETES Act of 2022’’

The U.S. House of Representatives passed H.R. 4521 , the ‘‘America COMPETES Act of 2022’’

The U.S. House of Representatives today passed H.R. 4521 the ‘‘America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022’’ (also referred to as the ‘‘America COMPETES Act of 2022’’).  The vote on the bill was 222-210.

The bill contains only one provision amending the Internal Revenue Code—a provision increasing the section 35 credit for health insurance for qualifying individuals and making the credit permanent.  The credit expired on December 31, 2021.


Read a one-page summary of the bill [PDF 143 KB] (prepared by the House staff)

Read text of the bill [PDF 6.1 MB] (as approved by the House Rules Committee)

What’s next?

The legislation is expected to be sent to the U.S. Senate for possible consideration. Previously, the Senate in June 2021 approved legislation—S. 1260 the “United States Innovation and Competition Act (USICA)”—addressing similar supply chain and competition issues.

A KPMG podcast (February 3, 2022) includes a discussion of possible tax implications of the legislation. Listen to Congress Considers Competition Legislation: An Opening for Tax?

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.