text: 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.
target: 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.
feat_title: To amend the Internal Revenue Code of 1986 to allow individuals a refundable credit for amounts paid for products and counseling designed to assist individuals to cease using tobacco products.