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HR6316119th CongressWALLET

Tax Credit Extension Act

Sponsored By: Representative Van Drew, Jefferson [R-NJ-2]

Introduced

Summary

Extends and reshapes the premium tax credit to keep enhanced subsidies in place and add new payment and savings mechanics while tightening eligibility checks and a minimum enrollee contribution. The bill would prolong higher tax-credit rules through 2027, let advance payments go directly to people or to a new Personal Health Savings Account, require a uniform minimum premium responsibility, fund cost-sharing reductions, and strengthen immigration-based eligibility checks.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 2 benefits, 0 costs, 2 mixed.

Marketplace credit extended; higher cap, new minimum

If enacted, the enhanced marketplace premium tax credit would run through 2027. Households with income up to 700% of the federal poverty level could qualify. Treasury and HHS could set a uniform minimum amount you must pay each month, which could lower the subsidy you get. These changes would apply to tax years starting after December 31, 2025.

Funding to keep cost-sharing help

If enacted, the government would authorize money as needed to pay cost-sharing reductions. This could keep lower copays and deductibles in place for eligible marketplace enrollees. Treasury and HHS would decide the needed amount, and Congress would still have to appropriate it.

Tighter checks on subsidy eligibility for noncitizens

If enacted, Treasury and HHS, with Homeland Security, would help marketplaces check if applicants are lawfully present. For tax years after December 31, 2026, they would also check if an applicant is an "eligible alien" under program rules. These checks would start for tax years beginning after December 31, 2025. This could change who among noncitizens qualifies for premium tax credits.

Choose where your subsidy is paid

If enacted, you could choose where advance payments go for your premium tax credit. You could send them to your insurer or, if you have a bronze or catastrophic plan, to your Personal HSA. If you make no choice, payments would go to you. You could set up a Personal HSA, but only advance payments or rollovers could go into it. Payment routing would apply to determinations after December 31, 2025; Personal HSA rules would apply to tax years ending after December 31, 2025.

Sponsors & CoSponsors

Sponsor

Van Drew, Jefferson [R-NJ-2]

NJ • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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