Bipartisan Premium Tax Credit Extension Act
This bill extends for one year, through 2026, temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit.
Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the ARPA and IRA eliminated the maximum income limit, which generally expands eligibility for the premium tax credit.
Further, under current law, the amount of the premium tax credit is (1) generally the plan premium (conditions apply), minus (2) the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage is a specific percentage that varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the ARPA and IRA lowered the applicable percentages and eliminated the adjustment of the applicable percentages for inflation, which generally increases the amount of the premium tax credit.
The bill extends for one year, through 2026, the elimination of the 400% maximum income limit, the lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5145 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 5145
To amend the Internal Revenue Code of 1986 to extend the enhanced
premium tax credit, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 4, 2025
Mrs. Kiggans of Virginia (for herself, Mr. Suozzi, Mr. Fitzpatrick, Mr.
Ciscomani, Mr. Bresnahan, Mr. Gimenez, Mr. Valadao, Mrs. Kim, Mr. Hurd
of Colorado, Mr. Kean, Mr. Golden of Maine, Mr. Lawler, Mr. Davis of
North Carolina, Ms. Perez, and Ms. Salazar) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to extend the enhanced
premium tax credit, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Bipartisan Premium Tax Credit
Extension Act''.
SEC. 2. EXTENSION OF ENHANCED PREMIUM TAX CREDIT.
(a) Extension of Rules To Increase Premium Assistance Amounts.--
Clause (iii) of section 36B(b)(3)(A) of the Internal Revenue Code of
1986 is amended--
(1) in the heading, by striking ``through 2025'' and
inserting ``through 2026'', and
(2) in the matter preceding subclause (I), by striking
``before January 1, 2026'' and inserting ``before January 1,
2027''.
(b) Extension of Rule To Allow Credit to Taxpayers Whose Household
Income Exceeds 400 Percent of Poverty Line.--Subparagraph (E) of
section 36B(c)(1) of such Code is amended--
(1) in the heading, by striking ``through 2025'' and
inserting ``through 2026'', and
(2) by striking ``before January 1, 2026'' and inserting
``before January 1, 2027''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2025.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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