Title 26 — Internal Revenue CodeRelease 119-73
§36B Refundable credit for coverage under a qualified health plan
Title 26 › Subtitle Subtitle A— - Income Taxes › Chapter CHAPTER 1— - NORMAL TAXES AND SURTAXES › Subchapter Subchapter A— - Determination of Tax Liability › Part PART IV— - CREDITS AGAINST TAX › Subpart Subpart C— - Refundable Credits › § 36B
Summary
You can get a refundable tax credit to help pay premiums for health plans you buy through your state’s ACA Marketplace. The credit equals the total of monthly help for each month you, your spouse, or a dependent had Marketplace coverage and you paid the premium (or got advance payments). Each month’s help is the smaller of (1) the monthly premium you paid for your Marketplace plan(s), or (2) the difference between the adjusted monthly cost of the second‑lowest‑cost silver plan in your area and one‑twelfth of a percentage of your household income. That percentage is set on a sliding scale by how your household income compares to the poverty line. The law gives exact percentage ranges and some temporary and yearly adjustment rules. Key points and definitions: an “applicable taxpayer” is someone with household income at least 100 percent of the poverty line (normally up to 400 percent, but the 400 percent limit is ignored for taxable years after December 31, 2020 and before January 1, 2026); a “coverage month” is a month someone in your tax family was enrolled through the Exchange and the premium was paid or advanced; a “qualified health plan” is an Exchange plan that meets the law’s rules (not a catastrophic plan); “household income” is your modified adjusted gross income plus certain family members’ incomes; “modified adjusted gross income” is AGI plus certain excluded income and tax‑free interest and a portion of Social Security benefits; the “poverty line” is the official figure used by the Social Security Act. Months don’t count if you’re eligible for other minimum essential coverage or for affordable employer coverage as defined in the law. Any advance payments reduce the credit on your return, and if advance payments exceed your allowed credit you must repay the excess. Exchanges must give the IRS and taxpayers detailed information about coverage, premiums, and advance payments. For 2021 only, people who received unemployment compensation for any week beginning in 2021 are treated as eligible and their household income for the credit is capped at 133 percent of the poverty line; they must self‑attest and provide required documentation. Treasury and HHS will publish rules needed to carry out these provisions.
Full Legal Text
Title 26, §36B
Internal Revenue Code — Source: USLM XML via OLRC
(a)In the case of an applicable taxpayer, there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the premium assistance credit amount of the taxpayer for the taxable year.
(b)For purposes of this section—
(1)The term “premium assistance credit amount” means, with respect to any taxable year, the sum of the premium assistance amounts determined under paragraph (2) with respect to all coverage months of the taxpayer occurring during the taxable year.
(2)The premium assistance amount determined under this subsection with respect to any coverage month is the amount equal to the lesser of—
(A)the monthly premiums for such month for 1 or more qualified health plans offered in the individual market within a State which cover the taxpayer, the taxpayer’s spouse, or any dependent (as defined in section 152) of the taxpayer and which were enrolled in through an Exchange established by the State under 1311 11 So in original. Probably should be preceded by “section”. of the Patient Protection and Affordable Care Act, or
(B)the excess (if any) of—
(i)the adjusted monthly premium for such month for the applicable second lowest cost silver plan with respect to the taxpayer, over
(ii)an amount equal to 1/12 of the product of the applicable percentage and the taxpayer’s household income for the taxable year.
(3)For purposes of paragraph (2)—
(A)(i)Except as provided in clause (ii), the applicable percentage for any taxable year shall be the percentage such that the applicable percentage for any taxpayer whose household income is within an income tier specified in the following table shall increase, on a sliding scale in a linear manner, from the initial premium percentage to the final premium percentage specified in such table for such income tier: In the case of household income (expressed as a percent of poverty line) within the following income tier:The initial premium percentage is—The final premium percentage is— Up to 133%2.0%2.0% 133% up to 150%3.0%4.0% 150% up to 200%4.0%6.3% 200% up to 250%6.3%8.05% 250% up to 300%8.05%9.5% 300% up to 400%9.5%9.5%.
(ii)(I)Subject to subclause (II), in the case of taxable years beginning in any calendar year after 2014, the initial and final applicable percentages under clause (i) (as in effect for the preceding calendar year after application of this clause) shall be adjusted to reflect the excess of the rate of premium growth for the preceding calendar year over the rate of income growth for the preceding calendar year.
(II)Except as provided in subclause (III), in the case of any calendar year after 2018, the percentages described in subclause (I) shall, in addition to the adjustment under subclause (I), be adjusted to reflect the excess (if any) of the rate of premium growth estimated under subclause (I) for the preceding calendar year over the rate of growth in the consumer price index for the preceding calendar year.
(III)Subclause (II) shall apply for any calendar year only if the aggregate amount of premium tax credits under this section and cost-sharing reductions under section 1402 of the Patient Protection and Affordable Care Act for the preceding calendar year exceeds an amount equal to 0.504 percent of the gross domestic product for the preceding calendar year.
(iii)In the case of a taxable year beginning after December 31, 2020, and before January 1, 2026—
(I)clause (ii) shall not apply for purposes of adjusting premium percentages under this subparagraph, and
(II)the following table shall be applied in lieu of the table contained in clause (i): In the case of household income (expressed as a percent of poverty line) within the following income tier:The initial premium percentage is—The final premium percentage is— Up to 150.0 percent 150.0 percent up to 200.0 percent2 200.0 percent up to 250.0 percent24 250.0 percent up to 300.0 percent46 300.0 percent up to 400.0 percent68.5 400.0 percent and higher8.58.5
(B)The applicable second lowest cost silver plan with respect to any applicable taxpayer is the second lowest cost silver plan of the individual market in the rating area in which the taxpayer resides which—
(i)is offered through the same Exchange through which the qualified health plans taken into account under paragraph (2)(A) were offered, and
(ii)provides—
(I)self-only coverage in the case of an applicable taxpayer—
(aa)whose tax for the taxable year is determined under section 1(c) 22 See References in Text note below. (relating to unmarried individuals other than surviving spouses and heads of households) and who is not allowed a deduction under section 151 for the taxable year with respect to a dependent, or
(bb)who is not described in item (aa) but who purchases only self-only coverage, and
(II)family coverage in the case of any other applicable taxpayer.
(C)The adjusted monthly premium for an applicable second lowest cost silver plan is the monthly premium which would have been charged (for the rating area with respect to which the premiums under paragraph (2)(A) were determined) for the plan if each individual covered under a qualified health plan taken into account under paragraph (2)(A) were covered by such silver plan and the premium was adjusted only for the age of each such individual in the manner allowed under section 2701 of the Public Health Service Act. In the case of a State participating in the wellness discount demonstration project under section 2705(d) of the Public Health Service Act, the adjusted monthly premium shall be determined without regard to any premium discount or rebate under such project.
(D)If—
(i)a qualified health plan under section 1302(b)(5) of the Patient Protection and Affordable Care Act offers benefits in addition to the essential health benefits required to be provided by the plan, or
(ii)a State requires a qualified health plan under section 1311(d)(3)(B) of such Act to cover benefits in addition to the essential health benefits required to be provided by the plan,
(E)For purposes of determining the amount of any monthly premium, if an individual enrolls in both a qualified health plan and a plan described in section 1311(d)(2)(B)(ii)(I) 2 of the Patient Protection and Affordable Care Act for any plan year, the portion of the premium for the plan described in such section that (under regulations prescribed by the Secretary) is properly allocable to pediatric dental benefits which are included in the essential health benefits required to be provided by a qualified health plan under section 1302(b)(1)(J) of such Act shall be treated as a premium payable for a qualified health plan.
(c)For purposes of this section—
(1)(A)The term “applicable taxpayer” means, with respect to any taxable year, a taxpayer whose household income for the taxable year equals or exceeds 100 percent but does not exceed 400 percent of an amount equal to the poverty line for a family of the size involved.
[(B)
(C)If the taxpayer is married (within the meaning of section 7703) at the close of the taxable year, the taxpayer shall be treated as an applicable taxpayer only if the taxpayer and the taxpayer’s spouse file a joint return for the taxable year.
(D)No credit shall be allowed under this section to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins.
(E)In the case of a taxable year beginning after December 31, 2020, and before January 1, 2026, subparagraph (A) shall be applied without regard to “but does not exceed 400 percent”.
(2)For purposes of this subsection—
(A)The term “coverage month” means, with respect to an applicable taxpayer, any month if—
(i)as of the first day of such month the taxpayer, the taxpayer’s spouse, or any dependent of the taxpayer is covered by a qualified health plan described in subsection (b)(2)(A) that was enrolled in through an Exchange established by the State under section 1311 of the Patient Protection and Affordable Care Act, and
(ii)the premium for coverage under such plan for such month is paid by the taxpayer (or through advance payment of the credit under subsection (a) under section 1412 of the Patient Protection and Affordable Care Act).
(B)(i)The term “coverage month” shall not include any month with respect to an individual if for such month the individual is eligible for minimum essential coverage other than eligibility for coverage described in section 5000A(f)(1)(C) (relating to coverage in the individual market).
(ii)The term “minimum essential coverage” has the meaning given such term by section 5000A(f).
(C)For purposes of subparagraph (B)—
(i)Except as provided in clause (iii), an employee shall not be treated as eligible for minimum essential coverage if such coverage—
(I)consists of an eligible employer-sponsored plan (as defined in section 5000A(f)(2)), and
(II)the employee’s required contribution (within the meaning of section 5000A(e)(1)(B)) with respect to the plan exceeds 9.5 percent of the applicable taxpayer’s household income.
(ii)Except as provided in clause (iii), an employee shall not be treated as eligible for minimum essential coverage if such coverage consists of an eligible employer-sponsored plan (as defined in section 5000A(f)(2)) and the plan’s share of the total allowed costs of benefits provided under the plan is less than 60 percent of such costs.
(iii)Clauses (i) and (ii) shall not apply if the employee (or any individual described in the last sentence of clause (i)) is covered under the eligible employer-sponsored plan or the grandfathered health plan.
(iv)In the case of plan years beginning in any calendar year after 2014, the Secretary shall adjust the 9.5 percent under clause (i)(II) in the same manner as the percentages are adjusted under subsection (b)(3)(A)(ii).
(3)(A)(i)The term “qualified health plan” has the meaning given such term by section 1301(a) of the Patient Protection and Affordable Care Act, except that such term shall not include a qualified health plan which is a catastrophic plan described in section 1302(e) of such Act.
(ii)Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre-enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant’s household income and eligibility for enrollment in such plan for plan years beginning in the subsequent year.
(iii)Such term shall not include any plan enrolled in during a special enrollment period provided for by an Exchange—
(I)on the basis of the relationship of the individual’s expected household income to such a percentage of the poverty line (or such other amount) as is prescribed by the Secretary of Health and Human Services for purposes of such period, and
(II)not in connection with the occurrence of an event or change in circumstances specified by the Secretary of Health and Human Services for such purposes.
(B)The term “grandfathered health plan” has the meaning given such term by section 1251 of the Patient Protection and Affordable Care Act.
(4)(A)The term “coverage month” shall not include any month with respect to an employee (or any spouse or dependent of such employee) if for such month the employee is provided a qualified small employer health reimbursement arrangement which constitutes affordable coverage.
(B)In the case of any employee who is provided a qualified small employer health reimbursement arrangement for any coverage month (determined without regard to subparagraph (A)), the credit otherwise allowable under subsection (a) to the taxpayer for such month shall be reduced (but not below zero) by the amount described in subparagraph (C)(i)(II) for such month.
(C)For purposes of subparagraph (A), a qualified small employer health reimbursement arrangement shall be treated as constituting affordable coverage for a month if—
(i)the excess of—
(I)the amount that would be paid by the employee as the premium for such month for self-only coverage under the second lowest cost silver plan offered in the relevant individual health insurance market, over
(II)1⁄12 of the employee’s permitted benefit (as defined in section 9831(d)(3)(C)) under such arrangement, does not exceed—
(ii)1⁄12 of 9.5 percent of the employee’s household income.
(D)For purposes of this paragraph, the term “qualified small employer health reimbursement arrangement” has the meaning given such term by section 9831(d)(2).
(E)In the case of an employee who is provided a qualified small employer health reimbursement arrangement for less than an entire year, subparagraph (C)(i)(II) shall be applied by substituting “the number of months during the year for which such arrangement was provided” for “12”.
(F)In the case of plan years beginning in any calendar year after 2014, the Secretary shall adjust the 9.5 percent amount under subparagraph (C)(ii) in the same manner as the percentages are adjusted under subsection (b)(3)(A)(ii).
(d)For purposes of this section—
(1)The family size involved with respect to any taxpayer shall be equal to the number of individuals for whom the taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year.
(2)(A)The term “household income” means, with respect to any taxpayer, an amount equal to the sum of—
(i)the modified adjusted gross income of the taxpayer, plus
(ii)the aggregate modified adjusted gross incomes of all other individuals who—
(I)were taken into account in determining the taxpayer’s family size under paragraph (1), and
(II)were required to file a return of tax imposed by section 1 for the taxable year.
(B)The term “modified adjusted gross income” means adjusted gross income increased by—
(i)any amount excluded from gross income under section 911,
(ii)any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax, and
(iii)an amount equal to the portion of the taxpayer’s social security benefits (as defined in section 86(d)) which is not included in gross income under section 86 for the taxable year.
(3)(A)The term “poverty line” has the meaning given that term in section 2110(c)(5) of the Social Security Act (42 U.S.C. 1397jj(c)(5)).
(B)In the case of any qualified health plan offered through an Exchange for coverage during a taxable year beginning in a calendar year, the poverty line used shall be the most recently published poverty line as of the 1st day of the regular enrollment period for coverage during such calendar year.
(e)(1)If 1 or more individuals for whom a taxpayer is allowed a deduction under section 151 (relating to allowance of deduction for personal exemptions) for the taxable year (including the taxpayer or his spouse) are individuals who are not lawfully present—
(A)the aggregate amount of premiums otherwise taken into account under clauses (i) and (ii) of subsection (b)(2)(A) shall be reduced by the portion (if any) of such premiums which is attributable to such individuals, and
(B)for purposes of applying this section, the determination as to what percentage a taxpayer’s household income bears to the poverty level for a family of the size involved shall be made under one of the following methods:
(i)A method under which—
(I)the taxpayer’s family size is determined by not taking such individuals into account, and
(II)the taxpayer’s household income is equal to the product of the taxpayer’s household income (determined without regard to this subsection) and a fraction—
(aa)the numerator of which is the poverty line for the taxpayer’s family size determined after application of subclause (I), and
(bb)the denominator of which is the poverty line for the taxpayer’s family size determined without regard to subclause (I).
(ii)A comparable method reaching the same result as the method under clause (i).
(2)For purposes of this section, an individual shall be treated as lawfully present only if the individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed, a citizen or national of the United States or an alien lawfully present in the United States.
(3)The Secretary of Health and Human Services, in consultation with the Secretary, shall prescribe rules setting forth the methods by which calculations of family size and household income are made for purposes of this subsection. Such rules shall be designed to ensure that the least burden is placed on individuals enrolling in qualified health plans through an Exchange and taxpayers eligible for the credit allowable under this section.
(f)(1)The amount of the credit allowed under this section for any taxable year shall be reduced (but not below zero) by the amount of any advance payment of such credit under section 1412 of the Patient Protection and Affordable Care Act.
(2)If the advance payments to a taxpayer under section 1412 of the Patient Protection and Affordable Care Act for a taxable year exceed the credit allowed by this section (determined without regard to paragraph (1)), the tax imposed by this chapter for the taxable year shall be increased by the amount of such excess.
(3)Each Exchange (or any person carrying out 1 or more responsibilities of an Exchange under section 1311(f)(3) or 1321(c) of the Patient Protection and Affordable Care Act) shall provide the following information to the Secretary and to the taxpayer with respect to any health plan provided through the Exchange:
(A)The level of coverage described in section 1302(d) of the Patient Protection and Affordable Care Act and the period such coverage was in effect.
(B)The total premium for the coverage without regard to the credit under this section or cost-sharing reductions under section 1402 of such Act.
(C)The aggregate amount of any advance payment of such credit or reductions under section 1412 of such Act.
(D)The name, address, and TIN of the primary insured and the name and TIN of each other individual obtaining coverage under the policy.
(E)Any information provided to the Exchange, including any change of circumstances, necessary to determine eligibility for, and the amount of, such credit.
(F)Information necessary to determine whether a taxpayer has received excess advance payments.
(g)(1)For purposes of this section, in the case of a taxpayer who has received, or has been approved to receive, unemployment compensation for any week beginning during 2021, for the taxable year in which such week begins—
(A)such taxpayer shall be treated as an applicable taxpayer, and
(B)there shall not be taken into account any household income of the taxpayer in excess of 133 percent of the poverty line for a family of the size involved.
(2)For purposes of this subsection, the term “unemployment compensation” has the meaning given such term in section 85(b).
(3)For purposes of this subsection, a taxpayer shall not be treated as having received (or been approved to receive) unemployment compensation for any week unless such taxpayer provides self-attestation of, and such documentation as the Secretary shall prescribe which demonstrates, such receipt or approval.
(4)(A)Paragraph (1)(A) shall not affect the application of subsection (c)(1)(C).
(B)Paragraph (1)(B) shall not apply to any determination of household income for purposes of paragraph (2)(C)(i)(II) or (4)(C)(ii) of subsection (c) 55 So in original. Probably should be followed by a period.
(h)The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section, including regulations which provide for—
(1)the coordination of the credit allowed under this section with the program for advance payment of the credit under section 1412 of the Patient Protection and Affordable Care Act, and
(2)the application of subsection (f) where the filing status of the taxpayer for a taxable year is different from such status used for determining the advance payment of the credit.
Legislative History
Notes & Related Subsidiaries
Amendment of Subsection (c)(3)(A)Pub. L. 119–21, title VII, § 71303(b), (c),
July 4, 2025, 139 Stat. 324, provided that, applicable to taxable years beginning after Dec. 31, 2027, subsection (c)(3)(A) of this section is amended as follows: (1) by striking “health plan.—The term” and inserting “health plan “(i) In general “The term”, and (2) by adding at the end the following new clause: “(ii) Pre-enrollment verification process required “Such term shall not include any plan enrolled in through an Exchange, unless such Exchange provides a process for pre-enrollment verification through which any applicant may, beginning not later than August 1, verify with the Exchange the applicant’s household income and eligibility for enrollment in such plan for plan years beginning in the subsequent year.” See 2025 Amendment notes below. Amendment of Subsection (c)(5), (6)Pub. L. 119–21, title VII, § 71303(a), (c),
July 4, 2025, 139 Stat. 323, 324, provided that, applicable to taxable years beginning after Dec. 31, 2027, subsection (c) of this section is amended by adding at the end the following new paragraphs: “(5) Exchange enrollment verification requirement “(A) In general “The term ‘coverage month’ shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month beginning before the Exchange verifies, using applicable enrollment information that shall be provided or verified by the applicant, such individual’s eligibility— “(i) to enroll in the plan through the Exchange, and “(ii) for any advance payment under section 1412 of the Patient Protection and Affordable Care Act of the credit allowed under this section. “(B) Applicable enrollment information “For purposes of subparagraph (A), applicable enrollment information shall include affirmation of at least the following information (to the extent relevant in determining eligibility described in subparagraph (A)): “(i) Household income and family size. “(ii) Whether the individual is an eligible alien. “(iii) Any health coverage status or eligibility for coverage. “(iv) Place of residence. “(v) Such other information as may be determined by the Secretary (in consultation with the Secretary of Health and Human Services) as necessary to the verification prescribed under subparagraph (A). “(C) Verification of past months “In the case of a month that begins before verification prescribed by subparagraph (A), such month shall be treated as a coverage month if the Exchange verifies for such month (using applicable enrollment information that shall be provided or verified by the applicant) such individual’s eligibility to have so enrolled and for any such advance payment. “(D) Exchange participation; coordination with other procedures for determining eligibility “An individual shall not, solely by reason of failing to meet the requirements of this paragraph with respect to a month, be treated for such month as ineligible to enroll in a qualified health plan through an Exchange. “(E) Waiver for certain special enrollment periods “The Secretary may waive the application of subparagraph (A) in the case of an individual who enrolls in a qualified health plan through an Exchange for 1 or more months of the taxable year during a special enrollment period provided by the Exchange on the basis of a change in the family size of the individual. “(F) Information and reliance on third-party sources “An Exchange shall be permitted to use any data available to the Exchange and any reliable third-party sources in collecting information for verification by the applicant. “(6) Exchange compliance with filing requirements “The term ‘coverage month’ shall not include, with respect to any individual covered by a qualified health plan enrolled in through an Exchange, any month for which the Exchange does not meet the requirements of section 155.305(f)(4)(iii) of title 45, Code of Federal
Regulations
(as published in the Federal Register on
June 25, 2025 (90 Fed. Reg. 27074), applied as though it applied to all plan years after 2025), with respect to the individual.” See 2025 Amendment notes below. Amendment of Subsection (e)Pub. L. 119–21, title VII, § 71301(a), (b), (e),
July 4, 2025, 139 Stat. 321, 322, provided that, applicable to taxable years beginning after Dec. 31, 2026, subsection (e) of this section is amended as follows: (1) in paragraph (1), by inserting “or, in the case of aliens who are lawfully present, are not eligible aliens” after “individuals who are not lawfully present”; and (2) in paragraph (2): (A) by striking “For purposes of this section, an individual” and inserting “For purposes of this section— “(A) In general “An individual”; and (B) by adding at the end the following new subparagraph: “(B) Eligible aliens “An individual who is an alien and lawfully present shall be treated as an eligible alien if such individual is, and is reasonably expected to be for the entire period of enrollment for which the credit under this section is being claimed— “(i) an alien who is lawfully admitted for permanent residence under the Immigration and Nationality Act (8 U.S.C. 1101 et seq.), “(ii) an alien who has been granted the status of Cuban and Haitian entrant, as defined in section 501(e) of the Refugee Education Assistance Act of 1980 (Public Law 96–422); or “(iii) an individual who lawfully resides in the United States in accordance with a Compact of Free Association referred to in section 402(b)(2)(G) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1612(b)(2)(G)).” See 2025 Amendment notes below. Inflation Adjusted Items for Certain YearsFor inflation adjustment of certain items in this section, see Revenue Procedures listed in a table under section 1 of this title.
Editorial Notes
References in Text
section 1251, 1301, 1302, 1311, 1321, 1402, and 1412 of the Patient Protection and Affordable Care Act, referred to in text, are classified to section 18011, 18021, 18022, 18031, 18041, 18071, and 18082, respectively, of Title 42, The Public Health and Welfare. section 1(c), referred to in subsecs. (b)(3)(B)(ii)(I)(aa) and (f)(2)(B)(i), to be treated, for purposes of the rate of tax, as a reference to the corresponding rate bracket under section 1(j)(2)(C) of this title, see section 1(j)(2)(F) of this title. section 2701 and 2705(d) of the Public Health Service Act, referred to in subsec. (b)(3)(C), are classified to section 300gg and 300gg–4(d), respectively, of Title 42, The Public Health and Welfare. The reference to section 2705(d) probably should be a reference to section 2705(l), which relates to wellness program demonstration project and is classified to section 300gg–4(l) of Title 42. section 1311(d)(2)(B)(ii)(I) of the Patient Protection and Affordable Care Act, referred to in subsec. (b)(3)(E), probably means section 1311(d)(2)(B)(ii) of Pub. L. 111–148, which is classified to section 18031(d)(2)(B)(ii) of Title 42, The Public Health and Welfare, and which does not contain subclauses. The Social Security Act, referred to in subsec. (c)(1)(B)(ii), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Title XIX of the Act is classified generally to subchapter XIX (§ 1396 et seq.) of chapter 7 of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
Amendments
2025—Subsec. (c)(1)(B). Pub. L. 119–21, § 71302(a), struck out subpar. (B) which related to a special rule for certain individuals lawfully present in the United States for treatment as an applicable taxpayer. Subsec. (c)(3)(A). Pub. L. 119–21, § 71303(b), designated existing provisions as cl. (i), inserted heading, and added cl. (ii). Subsec. (c)(3)(A)(iii). Pub. L. 119–21, § 71304(a), added cl. (iii). Subsec. (c)(5), (6). Pub. L. 119–21, § 71303(a), added pars. (5) and (6). Subsec. (e)(1). Pub. L. 119–21, § 71301(a), inserted “or, in the case of aliens who are lawfully present, are not eligible aliens” after “individuals who are not lawfully present” in introductory provisions. Subsec. (e)(2). Pub. L. 119–21, § 71301(b), substituted “For purposes of this section—” for “For purposes of this section,”, designated remainder of existing provisions as subpar. (A), inserted heading, and added subpar. (B). Subsec. (f)(2). Pub. L. 119–21, § 71305(a), (b)(1), struck out subpar. (A) designation and heading and subpar. (B) which related to limitation on increase of advance payments under section 1412 of the Patient Protection and Affordable Care Act to a taxpayer whose household income is less than 400 percent of the poverty line for the size of the family involved for the taxable year. 2022—Subsec. (b)(3)(A)(iii). Pub. L. 117–169, § 12001(a), substituted “2021 through 2025” for “2021 and 2022” in heading and “after
December 31, 2020, and before
January 1, 2026” for “in 2021 or 2022” in introductory provisions. Subsec. (c)(1)(E). Pub. L. 117–169, § 12001(b), substituted “2021 through 2025” for “2021 and 2022” in heading and “after
December 31, 2020, and before
January 1, 2026” for “in 2021 or 2022” in text. 2021—Subsec. (b)(3)(A)(iii). Pub. L. 117–2, § 9661(a), added cl. (iii). Subsec. (c)(1)(E). Pub. L. 117–2, § 9661(b), added subpar. (E). Subsec. (f)(2)(B)(iii). Pub. L. 117–2, § 9662(a), added cl. (iii). Subsecs. (g), (h). Pub. L. 117–2, § 9663(a), added subsec. (g) and redesignated former subsec. (g) as (h). 2017—Subsec. (f)(2)(B)(ii)(II). Pub. L. 115–97 substituted “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”. 2016—Subsec. (c)(4). Pub. L. 114–255 added par. (4). 2011—Subsec. (c)(2)(D). Pub. L. 112–10 struck out subpar. (D). Prior to amendment, text read as follows: “The term ‘coverage month’ shall not include any month in which such individual has a free choice voucher provided under section 10108 of the Patient Protection and Affordable Care Act.” Subsec. (d)(2)(B)(iii). Pub. L. 112–56 added cl. (iii). Subsec. (f)(2)(B)(i). Pub. L. 112–9 amended cl. (i) generally. Prior to amendment, cl. (i) consisted of text and a table limiting increase in amount recovered on reconciliation of health insurance tax credit and advance of that credit for households with income below 500 percent of Federal poverty line. 2010—Subsec. (b)(3)(A)(i). Pub. L. 111–152, § 1001(a)(1)(A), substituted “for any taxable year shall be the percentage such that the applicable percentage for any taxpayer whose household income is within an income tier specified in the following table shall increase, on a sliding scale in a linear manner, from the initial premium percentage to the final premium percentage specified in such table for such income tier:” for “with respect to any taxpayer for any taxable year is equal to 2.8 percent, increased by the number of percentage points (not greater than 7) which bears the same ratio to 7 percentage points as—” in introductory provisions, inserted table, and struck out subcls. (I) and (II) which read as follows: “(I) the taxpayer’s household income for the taxable year in excess of 100 percent of the poverty line for a family of the size involved, bears to “(II) an amount equal to 200 percent of the poverty line for a family of the size involved.” Subsec. (b)(3)(A)(ii). Pub. L. 111–152, § 1001(a)(1)(B), added cl. (ii) and struck out former cl. (ii). Text read as follows: “If a taxpayer’s household income for the taxable year equals or exceeds 100 percent, but not more than 133 percent, of the poverty line for a family of the size involved, the taxpayer’s applicable percentage shall be 2 percent.” Pub. L. 111–148, § 10105(a), substituted “equals or exceeds” for “is in excess of”. Subsec. (b)(3)(A)(iii). Pub. L. 111–152, § 1001(a)(1)(B), struck out cl. (iii). Text read as follows: “In the case of taxable years beginning in any calendar year after 2014, the Secretary shall adjust the initial and final applicable percentages under clause (i), and the 2 percent under clause (ii), for the calendar year to reflect the excess of the rate of premium growth between the preceding calendar year and 2013 over the rate of income growth for such period.” Subsec. (c)(1)(A). Pub. L. 111–148, § 10105(b), inserted “equals or” before “exceeds”. Subsec. (c)(2)(C)(i)(II). Pub. L. 111–152, § 1001(a)(2)(A), substituted “9.5 percent” for “9.8 percent”. Subsec. (c)(2)(C)(iv). Pub. L. 111–152, § 1001(a)(2), substituted “9.5 percent” for “9.8 percent” and “(b)(3)(A)(ii)” for “(b)(3)(A)(iii)”. Pub. L. 111–148, § 10105(c), substituted “subsection (b)(3)(A)(iii)” for “subsection (b)(3)(A)(ii)”. Subsec. (c)(2)(D). Pub. L. 111–148, § 10108(h)(1), added subpar. (D). Subsec. (d)(2)(A)(i), (ii). Pub. L. 111–152, § 1004(a)(1)(A), substituted “modified adjusted gross” for “modified gross”. Subsec. (d)(2)(B). Pub. L. 111–152, § 1004(a)(2)(A), amended subpar. (B) generally. Prior to amendment, text read as follows: “The term ‘modified gross income’ means gross income— “(i) decreased by the amount of any deduction allowable under paragraph (1), (3), (4), or (10) of section 62(a), “(ii) increased by the amount of interest received or accrued during the taxable year which is exempt from tax imposed by this chapter, and “(iii) determined without regard to section 911, 931, and 933.” Subsec. (f)(2)(B). Pub. L. 111–309, § 208(a), amended generally subpar. heading and cl. (i). Prior to amendment, text of cl. (i) read as follows: “In the case of an applicable taxpayer whose household income is less than 400 percent of the poverty line for the size of the family involved for the taxable year, the amount of the increase under subparagraph (A) shall in no event exceed $400 ($250 in the case of a taxpayer whose tax is determined under section 1(c) for the taxable year).” Subsec. (f)(2)(B)(ii). Pub. L. 111–309, § 208(b), inserted “in the table contained” after “each of the dollar amounts” in introductory provisions. Subsec. (f)(3). Pub. L. 111–152, § 1004(c), added par. (3).
Statutory Notes and Related Subsidiaries
Effective Date
of 2025 Amendment Pub. L. 119–21, title VII, § 71301(e), July 4, 2025, 139 Stat. 322, provided that: “The
Amendments
made by this section [amending this section and section 5000A of this title] (other than the
Amendments
made by subsection (c) [amending section 18081 and 18082 of title 42]) shall apply to taxable years beginning after
December 31, 2026.” Pub. L. 119–21, title VII, § 71302(b),
July 4, 2025, 139 Stat. 323, provided that: “The
Amendments
made by this section [amending this section] shall apply to taxable years beginning after
December 31, 2025.” Pub. L. 119–21, title VII, § 71303(c),
July 4, 2025, 139 Stat. 324, provided that: “The
Amendments
made by this section [amending this section] shall apply to taxable years beginning after
December 31, 2027.” Pub. L. 119–21, title VII, § 71304(b),
July 4, 2025, 139 Stat. 324, provided that: “The
Amendments
made by this section [amending this section] shall apply with respect to plan years beginning after December 31, 2025.” Amendment by section 71305 of Pub. L. 119–21, applicable to taxable years beginning after Dec. 31, 2025, see section 71305(c) of Pub. L. 119–21 set out as a note under section 35 of this title.
Effective Date
of 2022 Amendment Pub. L. 117–169, title I, § 12001(c), Aug. 16, 2022, 136 Stat. 1906, provided that: “The
Amendments
made by this section [amending this section] shall apply to taxable years beginning after December 31, 2022.”
Effective Date
of 2021 Amendment Pub. L. 117–2, title IX, § 9661(c), Mar. 11, 2021, 135 Stat. 183, provided that: “The
Amendments
made by this section [amending this section] shall apply to taxable years beginning after
December 31, 2020.” Pub. L. 117–2, title IX, § 9662(b), Mar. 11, 2021, 135 Stat. 183, provided that: “The amendment made by this section [amending this section] shall apply to taxable years beginning after
December 31, 2019.” Pub. L. 117–2, title IX, § 9663(b), Mar. 11, 2021, 135 Stat. 184, provided that: “The
Amendments
made by this section [amending this section] shall apply to taxable years beginning after December 31, 2020.”
Effective Date
of 2017 AmendmentAmendment by Pub. L. 115–97 applicable to taxable years beginning after Dec. 31, 2017, see section 11002(e) of Pub. L. 115–97, set out as a note under section 1 of this title.
Effective Date
of 2016 Amendment Pub. L. 114–255, div. C, title XVIII, § 18001(a)(7), Dec. 13, 2016, 130 Stat. 1343, provided that: “(A) In general.—Except as otherwise provided in this paragraph, the
Amendments
made by this subsection [amending this section, section 106, 4980I, 6051, 6652, and 9831 of this title, and section 18081 of Title 42, The Public Health and Welfare] shall apply to years beginning after
December 31, 2016. “(B) Transition relief.—The relief under Treasury Notice 2015–17 shall be treated as applying to any plan year beginning on or before
December 31, 2016. “(C) Coordination with health insurance premium credit.—The
Amendments
made by paragraph (3) [amending this section] shall apply to taxable years beginning after December 31, 2016. “(D) Employee notice.—“(i) In general.—The
Amendments
made by paragraph (5) [amending section 6652 of this title] shall apply to notices with respect to years beginning after December 31, 2016. “(ii) Transition relief.—For purposes of section 6652(o) of the Internal Revenue Code of 1986 (as added by this Act), a person shall not be treated as failing to provide a written notice as required by section 9831(d)(4) of such Code if such notice is so provided not later than 90 days after the date of the enactment of this Act [Dec. 13, 2016]. “(E) W–2 reporting.—The
Amendments
made by paragraph (6)(A) [amending section 6051 of this title] shall apply to calendar years beginning after December 31, 2016. “(F) Information provided by exchange subsidy applicants.—“(i) In general.—The
Amendments
made by paragraph (6)(B) [amending section 18081 of Title 42] shall apply to applications for enrollment made after
December 31, 2016. “(ii) Verification.—Verification under section 1411 of the Patient Protection and Affordable Care Act [42 U.S.C. 18081] of information provided under section 1411(b)(3)(B) of such Act shall apply with respect to months beginning after October 2016. “(iii) Transitional relief.—In the case of an application for enrollment under section 1411(b) of the Patient Protection and Affordable Care Act [42 U.S.C. 18081(b)] made before
April 1, 2017, the requirement of section 1411(b)(3)(B) of such Act shall be treated as met if the information described therein is provided not later than 30 days after the date on which the applicant receives the notice described in section 9831(d)(4) of the Internal Revenue Code of 1986.”
Effective Date
of 2011 Amendment Pub. L. 112–56, title IV, § 401(b), Nov. 21, 2011, 125 Stat. 734, provided that: “The
Amendments
made by this section [amending this section] shall take effect on the date of the enactment of this Act [Nov. 21, 2011].” Pub. L. 112–10, div. B, title VIII, § 1858(d), Apr. 15, 2011, 125 Stat. 169, provided that: “The
Amendments
made by this section [amending this section, section 162, 4980H, and 6056 of this title, and section 218b of Title 29, Labor, and repealing section 139D of this title and section 18101 of Title 42, The Public Health and Welfare] shall take effect as if included in the provisions of, and the
Amendments
made by, the provisions of the Patient Protection and Affordable Care Act [Pub. L. 111–148] to which they relate.” Pub. L. 112–9, § 4(b), Apr. 14, 2011, 125 Stat. 37, provided that: “The amendment made by this section [amending this section] shall apply to taxable years ending after December 31, 2013.”
Effective Date
of 2010 Amendment Pub. L. 111–309, title II, § 208(c), Dec. 15, 2010, 124 Stat. 3292, provided that: “The
Amendments
made by this section [amending this section] shall apply to taxable years beginning after
December 31, 2013.” Pub. L. 111–148, title X, § 10108(h)(2), Mar. 23, 2010, 124 Stat. 914, provided that: “The amendment made by this subsection [amending this section] shall apply to taxable years beginning after
December 31, 2013.”
Effective Date
Pub. L. 111–148, title I, § 1401(e), Mar. 23, 2010, 124 Stat. 220, provided that: “The
Amendments
made by this section [enacting this section and amending section 280C and 6211 of this title and section 1324 of Title 31, Money and Finance] shall apply to taxable years ending after December 31, 2013.” Substantiation Requirements Pub. L. 114–255, div. C, title XVIII, § 18001(a)(8), Dec. 13, 2016, 130 Stat. 1343, provided that: “The Secretary of the Treasury (or his designee) may issue substantiation requirements as necessary to carry out this subsection [amending this section, section 106, 4980I, 6051, 6652, and 9831 of this title, and section 18081 of Title 42, The Public Health and Welfare, and enacting provisions set out as a note under this section].” No Impact on Social Security Trust Funds Pub. L. 112–56, title IV, § 401(c), Nov. 21, 2011, 125 Stat. 734, provided that: “(1) Estimate of secretary.—The Secretary of the Treasury, or the Secretary’s delegate, shall annually estimate the impact that the
Amendments
made by subsection (a) [amending this section] have on the income and balances of the trust funds established under section 201 of the Social Security Act (42 U.S.C. 401). “(2) Transfer of funds.—If, under paragraph (1), the Secretary of the Treasury or the Secretary’s delegate estimates that such
Amendments
have a negative impact on the income and balances of such trust funds, the Secretary shall transfer, not less frequently than quarterly, from the general fund an amount sufficient so as to ensure that the income and balances of such trust funds are not reduced as a result of such
Amendments
.”
Reference
Citations & Metadata
Citation
26 U.S.C. § 36B
Title 26 — Internal Revenue Code
Last Updated
Apr 6, 2026
Release point: 119-73