article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Quit Smoking Incentive and Opportunity Act of 2003''. SEC. 2. FINDINGS. Congress finds as follows: (1) Unless the prevalence of tobacco use is cut dramatically, about 24,000,000 Americans, 1 out of every 2 current smokers in America, will die prematurely of a disease directly caused by their dependence on tobacco. (2) Smoking is the leading preventable cause of death in the United States with 400,000 premature deaths annually, and $157,000,000,000 in annual health-related economic losses, including more than $75,000,000,000 in excess medical expenditures. (3) Clinical studies have shown that pharmacological treatments are an effective treatment for tobacco dependence, and there are currently 6 medications that have been approved by the FDA for tobacco use cessation. (4) Clinical studies have shown that counseling is an effective treatment for tobacco dependence, and that counseling can be provided in individual or group settings, or via telephone, such as the Quit Lines provided by 33 States. (5) Studies have also shown that when counseling is combined with pharmacological treatment, the effectiveness of treatment doubles or triples (compared to counseling alone). (6) The cost of over-the-counter Nicotine Replacement Therapy (gum, patch, lozenges) is not covered by Medicare, and is rarely covered by private insurance. Fifteen states under Medicaid cover no Nicotine Replacement Therapy and many of the remaining 35 states do not cover all Nicotine Replacement Therapies. Nicotine Replacement Therapy is rarely tax- deductible, and typically costs about $300 for a suggested 10- week course of treatment. (7) The Guide to Community Preventive Services: Tobacco Use Prevention and Control (CDC 2000) and Treating Tobacco Use and Dependence: Clinical Practice Guideline (2000) recommended a reduction or elimination of out-of-pocket costs to increase the use of tobacco use cessation treatments. (8) Under current law, unreimbursed tobacco use cessation counseling programs and prescribed nicotine-withdrawal drugs are considered expenses for medical care that are deductible subject to the 7.5 percent of adjusted gross income limitation. (9) Two-thirds of all filers do not itemize. SEC. 3. REFUNDABLE CREDIT FOR AMOUNTS PAID TO ASSIST INDIVIDUALS TO CEASE USING TOBACCO PRODUCTS. (a) In General.--Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 35 the following new section: ``SEC. 35A. CERTAIN EXPENSES TO ASSIST INDIVIDUALS TO CEASE USING TOBACCO PRODUCTS. ``(a) Allowance of Credit.--In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle an amount equal to the qualified tobacco use cessation expenses paid by the taxpayer during the taxable year for the benefit of the taxpayer, the taxpayer's spouse, or any dependent of the taxpayer. ``(b) Limitation.--The credit allowed under this section shall not exceed-- ``(1) $300 for amounts described in subsection (c)(1)(A), and ``(2) $100 for amounts described in subsection (c)(1)(B). ``(c) Qualified Tobacco Use Cessation Expenses.--For purposes of this section-- ``(1) In general.--The term `qualified tobacco use cessation expenses' means expenses-- ``(A) for products determined by the Food and Drug Administration to be safe and effective in promoting a reduction in the use of tobacco products by individuals, and ``(B) for counseling for cessation of tobacco use. ``(2) Counseling.-- ``(A) In general.--Subject to subparagraph (B), the term `counseling for cessation of tobacco use' means diagnostic, therapy, and counseling services for cessation of tobacco use for individuals who use tobacco products or who are being treated for tobacco use which are furnished-- ``(i) by or under the supervision of a physician, or ``(ii) by any other health care professional who is legally authorized to furnish such services under State law (or the State regulatory mechanism provided by State law) of the State in which the services are furnished. ``(B) Limitation.--Such term is limited to-- ``(i) services recommended in `Treating Tobacco Use and Dependence: A Clinical Practice Guideline', published by the Public Health Service in June 2000, or any subsequent modification of such Guideline, and ``(ii) such other services that the Secretary of Health and Human Services recognizes to be effective.'' (b) Technical Amendments.-- (1) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting ``or 36'' after ``section 35''. (2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 35 following new item: ``Sec. 35A. Certain expenses to assist individuals to cease using tobacco products.'' (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.
summary: Quit Smoking Incentive and Opportunity Act of 2003 - Amends the Internal Revenue Code to allow a limited credit for the qualified tobacco use cessation expenses (approved cessation products and counseling) of a taxpayer, the taxpayer's spouse, or any dependent of the taxpayer.