Section 1 Short title
This Act may be cited as the “Tax Credit Extension Act”.
Tax Credit Extension Act
A BILL
To amend the Internal Revenue Code of 1986 to extend the premium tax credit and provide for advance payment of the credit to taxpayers, and for other purposes.
Sec. 2 Extension and modification of increased premium tax credit
by striking “January 1, 2026” and inserting “January 1, 2028”,
by striking “through 2025” in the heading thereof and inserting “through 2027”.
Household income cap—
In general— The table in section 36B(b)(A)(3)(iii) of such Code is amended by striking “and higher” and inserting “up to 700.0 percent”.
Conforming amendment— Section 36B(c)(1)(E) of such Code is amended—
by striking “shall be applied without regard to” and inserting “shall be applied by substituting “but does not exceed 700 percent” for”, and
by striking “through 2025” in the heading and inserting “through 2027”.
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2025.
Sec. 3 Advance payment of premium tax credit made directly to individuals or to Personal HSA
In general— Section 1412(a)(3) of the Patient Protection and Affordable Care Act is amended—
by striking “credit or reductions to the issuers” and inserting the following:
“(A) on the election of the individual, to the issuer”
by striking the period at the end and inserting “, and”, and
by adding at the end the following new subparagraph:
“(B) in the case of an individual who is covered under a plan in the bronze level, or a catastrophic plan, and who so elects, to the personal HSA (as defined in section 223(h) of the Internal Revenue Code of 1986) of the individual,
“(C) in the absence of either such election, to individuals.”
Personal HSAs— Section 223 of the Internal Revenue Code of 1986 is amended by redesignating subsection (h) as subsection (i) and by inserting after subsection (g) the following new subsection:
“(h) Personal HSAs
“(1) In general—An individual may elect to designate a health savings account as, or establish in a health savings account a separate account to be treated as, a Personal HSA.
“(2) Personal HSA—A personal HSA shall be treated for purposes of this section in the same manner as a health savings account, except that—
“(A) no contributions may be made to a personal HSA other than advance payments made by the Secretary under section 1412(a)(3)(B) of the Patient Protection and Affordable Care Act or amounts rolled over from another personal HSA of the account beneficiary,
“(B) such contributions shall not be taken into account under subsection (a), and
“(C) subsection (d) shall be applied without regard to paragraph (2)(B).”
Effective date—
Subsection (a)— The amendments made by subsection (a) shall apply to determinations made after December 31, 2025.
Subsection (b)— The amendments made by subsection (b) shall apply to taxable years ending after December 31, 2025.
Sec. 4 Minimum premium responsibility
In general— Section 36B(b)(2) of the Internal Revenue Code of 1986 is amended by adding at the end the following new flush matter:
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2025.
Sec. 5 Authorization of appropriations for cost-sharing reduction payments
There are authorized to be appropriated to carry out the payment of cost-sharing reductions under section 1412 of the Patient Protection and Affordable Care Act such amounts as the Secretary of the Treasury, in consultation with the Secretary of Health and Human Services, determines are necessary.
Sec. 6 Determination of immigration status for premium tax credit
In general— Section 35B(c)(5) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
“(G) Determination of legal status—The Secretary and the Secretary of Health and Human Services shall, in consultation with the Secretary of Homeland Security, assist Exchanges with determining whether alien individuals are lawfully present in the United States, and, in the case of taxable years beginning after December 31, 2026, whether alien individuals are eligible aliens.”
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2025.
Sec. 7 Sense of Congress regarding aliens
It is the sense of Congress that no credit shall be allowed under section 36B of the Internal Revenue Code of 1986 with respect to any individual who is an alien not lawfully present in the United States, and in the case of taxable years beginning after December 31, 2026, with respect to any individual who is an alien not lawfully present or, in the case of an alien lawfully present, an individual who is not an eligible alien.