Child Care and Health Insurance Act of 1989

Child Care and Health Insurance Act of 1989 - Title I: Tax Credit for Certain Health Insurance Premiums and Child care - Amends the Internal Revenue Code to increase by the credit percentage of qualified health insurance premiums the tax credit for expenses for household and dependent care services necessary for gainful employment.

Makes the dependent care and health insurance premium credit refundable for low and moderate taxpayers.

Requires employers to make advance payments of the dependent care credit to eligible employees.

Increases the dependent care credit for low-income taxpayers.

Declares that employment-related expenses or qualifying health insurance expenses that are subsidized by Federal, State, or local government are not eligible for the tax credit.

Requires the Comptroller General to report to the appropriate congressional committees on a study of the effectiveness and complexity of the advance payment system.

Directs the Secretary of the Treasury to establish a taxpayer awareness program to inform the public of the availability of the credit for dependent care and health insurance premiums.

Authorizes appropriations for FY 1990 through 1994 for the Secretary of Health and Human Services to conduct demonstration projects to extend health insurance to children and their families who are not covered by public or private health programs.

Title II: Employee Benefit Nondiscrimination Rules - Amends the Tax Reform Act of 1986 to delay until 1990 the effective date of the nondiscrimination requirements for benefits provided under certain employee benefit plans.

Amends the Internal Revenue Code to revise such (section 89) nondiscrimination requirements by requiring the taxation of the excess health benefits of a highly compensated employee. Excludes from such requirements certain students, certain elderly, and prisoners.

Imposes an excise tax on employers or employer plans if an employee benefit plan fails to satisfy certain administrative requirements.

Restores prior law with respect to nondiscrimination requirements of group-term life insurance plans.

Authorizes an employer to elect to use current nondiscrimination rules for years beginning 1990 or 1991 as they apply to health plans and dependent care assistance programs.

Revises provisions relating to the nontaxable benefits of employers of leased employees, the dependent care assistance program, and group-term life insurance provided to highly compensated employees.

Directs the United States Bipartisan Commission on Comprehensive Health Care to study the implementation and effectiveness of (section 89) nondiscrimination requirements.

Title III: Other Revenue Provisions - Makes the telephone excise tax permanent. Specifies the time for the deposit of such taxes. Requires certain persons who are exempt from such tax to file a one-time exemption certificate.

Requires an S corporation to make estimated tax payments if it has tax attributable to: (1) the recognition of certain built-in gains; (2) the realization of excess passive income; and (3) the recapture of certain investment tax credits.